MSME notified procedures for registration under MSME scheme as per new guidelines of classification

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Law Update
  • Udyog Aadhaar registration for MSMEs will be called now Udyam Registration.
  • Udyam Parichay Portal (http://enterpriseindia.gov.in) will assign permanent identify number and the existing number will get replaced with the new one.
  • All existing MSME must register/convert after 1st July, 2020 and before 31st March, 2021 to enjoy the benefits as MSME unit under the MSME Development Act, 2006.
  • Registration will be made based on self-declaration as well as validation of data with Income Tax and GSTN portal and no documents to be uploaded.
  • All the units with GSTIN listed against the same PAN will be collectively treated as one unit and for classification, investment & turnover figures of all such units will be aggregated in deciding the category as micro, small or medium enterprise.
  • Investment in plant & machineries or equipment will be linked to last ITR filed.
  • Definition of plant & machineries or equipment shall have the same definition as per Income Tax and shall include all tangible assets excluding land, building, furniture, fixtures.
  • Purchase value of P&M/Equip. as per invoice excluding GST will be considered based on ITR filed and in case of new enterprise based on self-declaration.
  • Information about turnover and export turnover shall be linked to Income Tax Return/ GST returns. For new units registration can be made on self-declaration and PAN and GSTIN will be mandatory post 31st March, 2021.
  • Aadhaar number of Proprietor/ Partner/ Kata of HUF will be required.
  • In case of Companies, LLP, Trusts, Societies, PAN, GSTIN also required along with Aadhaar number of authorized signatories.
  • All existing enterprises registered under EM-part-II or UAM shall register again on Udyam registration portal on or after 1st July 2020 and prior to 31st March, 2021 and will be reclassified based on revised threshold limits.
  • For manufacturing and service activities under one PAN, only one Udyam number will be allotted.

With revised guidelines, the process of registration under MSME Act made more transparent. Figures declared under Income Tax and GST will be critical now to avail benefits under MSME act. Previously, self-declaration was sufficient and there was no check over the figures declared under Income Tax and GST.

Disclaimer: The purpose of this blog is for education purpose and should not be construed as professional advice. Views expressed herein are the personal views of the author. Government or judicial authorities may or may not subscribe to the views expressed herein. Author of the blog is not liable for any implications arising out of actions taken based on the views expressed herein.

 

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