Consolidated Notification For Classification And Registration Of Msmes
The Micro Small and Medium Enterprises (MSME) Ministry has issued consolidated notification for classification and registration of MSMEs to be effected from July 1.
Issued after detailed consultation with various stakeholders including advisory committee, officials of Income Tax and GST, State Governments and associations, this notification would supersede all earlier notifications with regard to classification or registration of MSMEs
Registration Process Criteria
• MSME would hereafter been referred to as Udyam and the registration process as Udyam Registration.
• The Registration can be filed online based on self-declaration. Uploading of documents, papers or certificate as proof would not be necessary henceforth.
• The process has been integrated with the income tax and GST systems. It would be a paper-less exercise in a true sense
• The basic criteria for MSME classification would be on investment in plant, machinery and equipment and turnover.
• As per the latest classification,
Micro enterprises-investments not exceeding Rs 1crore and turnover of Rs 5 crore
Small enterprises - investment up to Rs 10 crore and turnover of up to Rs 50 crore
Mediumenterprises- investments not exceeding Rs 50 crore and turnover of Rs 250 crore.
PEPPER IT WITH
CGTMSE, ASPIRE,, MSE-CDP
• The notification clarifies that export of goods or services or both would be excluded while calculating the turnover of any enterprise, whether micro, small or medium; and investment calculation linked to the IT return of the previous year.
• For new enterprises (where no prior ITR is available), self-declaration of the promoter would suffice till the tax returns are filed.
• Establishment of a facilitation mechanism, a Single Window System at the district and regional level, would ease the Udyam Registration process.
• At the district level, the DICs (District Industries Centres) would help entrepreneurs.
• Champions Control Room across the country have been made legally responsible for facilitating such entrepreneurs in registration and thereafter.
• Registering an enterprise on the basis of Aadhar number is another plus, considering that there would not be any need to upload any paper document; this would encourage enterprising youth to join and steer the economy through this crucial.
MSMEs are the backbone of the economy in terms of GDP, exports and job creation. With the stimulus, these enterprises will be in a position to lead to a fast V-shaped recovery the moment the pandemic is brought under control.