A Founder’s Guide to Monthly Compliance: GST, TDS, Books

Monthly compliance is one of those things founders don’t think about until something breaks: a notice arrives, a vendor can’t claim credit, your GST filing doesn’t match your books, or year-end tax work becomes a mess. The good news is that monthly compliance doesn’t have to feel heavy. If you follow a simple routine, it becomes a predictable process that protects your business and keeps your financial reporting clean.

This guide breaks monthly compliance into three buckets founders should care about: GST, TDS, and Books. The goal is not to turn you into an accountant. The goal is to help you know what to check, what to ask your team, and what “done” looks like each month.

1. GST: Keep your sales and tax reporting aligned

GST compliance is less about “filing a return” and more about making sure your sales, invoices, and input tax credit (ITC) details are accurate and consistent month after month.

Your monthly GST checklist (founder-friendly):

  • Ensure all sales invoices are recorded for the month (including credit notes and debit notes).
  • Confirm purchase invoices are captured so you don’t miss ITC.
  • Match your sales numbers with what your GST return is reporting. If your internal sales report and GST data differ, that’s a red flag.
  • File and pay on time. For many businesses filing monthly, GSTR-3B is typically due on the 20th of the next month (dates can vary if you are under QRMP/other cases).

Simple founder tip: Ask your accounts/finance person to share a one-page summary each month: total sales reported, GST payable, ITC claimed, and any mismatches to fix.

That’s enough for you to stay in control without reading every line.

2. TDS: Deduct, deposit, and don’t let it pile up

TDS becomes stressful when it’s treated as an “end-of-quarter problem.” The clean way is to handle it every month, even if returns are filed quarterly.

Your monthly TDS checklist:

  • Identify payments that require TDS (rent, professional fees, contractor payments, etc.).
  • Deduct TDS correctly at the time of booking/payment (your team will handle rates; your role is ensuring the process exists).
  • Deposit TDS on time. In general, TDS payment is due by the 7th of the following month (common standard, with special cases like March).
  • Keep basic documentation ready: invoices, PAN details, and payment proofs.

Simple founder tip: Ask your finance/admin team:
“Do we have any payments this month that need TDS, and was it deposited by the due date?”

3. Books: Clean records make everything else easier

Books are your base. If your bookkeeping is messy, GST and TDS will also become messy because filings pull data from your records.

Your monthly bookkeeping checklist:

  • Record all income and expenses for the month
  • Reconcile bank accounts so your bank balance and books agree.
  • Check outstanding items: unpaid invoices (receivables) and pending bills (payables).
  • Review the month’s Profit & Loss (P&L) at a high level, even if you don’t go line-by-line.

A month-end close process exists for one reason: to make your monthly numbers reliable, not approximate.

Simple founder tip: If your team can’t close the month within 10–15 days, you’ll always be making decisions based on old data.

A simple monthly compliance routine (that founders can follow):

Week 1 (Start of the month)

  • Collect and upload all sales and purchase invoices from the previous month
  • Confirm TDS-applicable payments list is updated

Week 2

  • Bank reconciliation completed
  • Follow-up on missing invoices/mismatches (GST and books)

Week 3

  • Finalise GST working, verify totals, and prepare payment
  • Deposit TDS (if not already done earlier)

Week 4 (Month-end hygiene)

  • Close the books (lock the month)
  • Review a simple summary: sales, gross margin trend, top cost movements, compliance status

Common mistakes founders should watch for

  • Mixing cash and profit: Your P&L can look fine while cash is tight.
  • Missing purchase invoices: Leads to lost ITC or later mismatches.
  • Late TDS deposits: Small delays can trigger interest/penalty headaches.
  • Relying only on quarterly clean-ups: It always costs more time and creates more errors.

What “good compliance” looks like

By the end of every month, you should be able to answer:

  • Are our GST and TDS up to date?
  • Are our books reconciled and closed for the month?
  • Do we have any mismatches that could cause notices later?
  • Do our numbers give us a clear view of performance?

If the answer is “yes” consistently, compliance stops being a risk and becomes a strength.