After receiving the recommendations of the Advisory Committee for MSME Udyam Registration the central Government comes up with:

The government introduced some specific criteria for classifying the enterprises as micro, small and medium enterprises.

Also notified about the form and the process of filing the memorandum (Udyam Registration), w.e.f 1st day of July 2020

GST Identification Number Not Required for Udyam Registration

The Modi Government has taken another step for the paperless, simplified process, and time-saving mechanism. Now, for Micro, Small, and Medium Enterprises (MSME) there is no requirement for a unique Goods and Services Tax Identification Number (GSTIN) during “Udyam Registration”.

A notification has been issued by the Ministry of MSME on 05.03.2021 to remove the mandatory requirement for filing Udyam Registration with those for filing GST Returns. “The exemption from the requirement of having GSTIN shall be as per the provisions of the Central Goods and Services Tax Act, 2017 (12 of 2017).” Now, the proprietor may use his or her PAN only for registering the enterprise.

“In case of any proprietorship enterprise not registered under any Act or rules of the Central Government or the State Government, the proprietor may use his or her PAN for registration of the enterprise in the Udyam Registration portal and for all other types of enterprises PAN shall be mandatory,”As per the Notification released by Modi Government dated 26.06.2020, GSTIN was a prerequisite for registration on the Udyam Registration Portal, with effect from 01.04.2021. However, a huge number of representations had been received by the central government from various MSME Associations.

The aforesaid association stated to the central government that “making of GSTIN mandatory” is affecting the registration process. The reason being, many enterprises have been exempted from the mandatory requirement of filing GST Returns as per the above-mentioned notification. This phenomenon can be attributed to the existence of a large number of MSME having an annual turnover less than the fixed limit for exemption from registration as per the GST Act. Thereafter, the matter had been examined by the central government and the aforesaid notification has been issued by the central government for relaxation.

Moreover, This relaxation shall further help various micro-enterprises (that includes skilled craftsmen and artisans, and other enterprises in an informal sector/unorganized sector) to get the registration quickly and easily. The proprietor of a firm may use his or her PAN only for registration of the enterprise in the Udyam Registration Portal

View Major Components Before UDYAM and MSME Registration

There would be no fees for filing Udyam Registration and an Aadhar number is needed during Udyam Registration

The Aadhar number would be of the owner in the case of ownership organization, of the managing partner in the term of a partnership industry. And of a Karta in the case of a Hindu entire family ( HUF)

In the case of the firm or a Limited Partnership or a Cooperative Society or a Society or a trust, the entities or its legal signatory would offer ist GSTIN and PAN and Aadhar number

If an organization is correctly registered as a Udyam with PAN, any lack of information for back years when PAN was not would be filled up on an auto- disclosure basis

There would be no company that can file more than one Udyam Registration: issued that any number of activities that involve manufacturing or service or both may be defined or included in one Udyam Registration

Whoever holding EM -II or UAM registration or any other registration provided by any authority within the Ministry of MSME. They have to re-register

Those who purposely misrepresent or try to suppress the auto-disclosed facts and figures showing in the Udyam Registration or enhanced the procedure would be responsible for such punishment as mentioned under clause 27 of the Act

In terms of PAN and GST attached are details on investment and turnover of industries that will be bought automatically from the database of the Government

Significant Documents About MSME Registration

• PAN card number

• Aadhar card number

• Bank account number

• Business address

• The basic business activity

• Investment information ( plant / equipment information)

• NIC 2 digit code

• Turnover information ( as per new MSME definition)

• Sales and buy bill duplicates

• Partnership deed

• Copies of license and bills of purchases machinery

( Documents and Information checklist related to MSME / UDYAN registration is linked herewith for your references.)

Simple Steps for MSME and UDYAM Registration

Here are the following steps to follow for the Registration process for MSME :

• Step -1: Fill in the MSME registration form online with detailed information via visiting the official website

• Step – 2: Later complying with the application form along with documents, the applicant would be a registration number

• Step – 3: Later on, the administration would register the applicant’s business as MSME under 1- 2 working days

• Step – 4: MSME registration certificate would be reached instantly and hassle-free for businesses to get a registered email – addresses

The procedure of MSME registration is instant and undisturbed for businesses to get registered as MSME within the Ministry of MSME.

Prime Advantages of MSME Registration for Business in India

• Tax refund availability

• Businesses can aid cheaper bank loans with fewer interest rates ( approx 1 to 1.5 %) contrary to regular loans.

• Main government tenders catering to MSMEs specifically.

• Far from the regular Minimum Alternate Tax ( MAT) time span of 10 years for credit, MSMEs are enabled to move further this limit to 15 years for credit against MAT.

• More preference from the government in the case of licensing and certification.

• Simple credit availability low – cost for industry set – up, patents, and therefore not due to certain tax rebates and other benefits.

• There would be a one-time settlement option in terms of unpaid charges.

MSME Udyam Registration Process

• Furnish Udyam Registration Online

• On the basis of Self declaration.

• No need to upload documents, certificates, papers and proof.

• After successful Registration, Udyam Registration Number (URN) will be allotted.

• Udyam Registration certificate (E-Certificate) will be provided on completion.

Composite criteria of investment and turnover for classification

Shifting from one category to another:

• Will be placed in the next Higher Category if an enterprise surpasses the ceiling limits of its present category in Investment or T/o criteria.

• Will be placed in the lower category if the enterprise failed to keep within the ceiling limits specified in its current category in both categories Investment and T/o.