The Micro, Small and Medium Enterprises (MSMEs) should obtain the MSME registration through the Government Udyam registration portal. The government has further simplified the registration of MSMEs in this portal. The registration portal aims to provide single-page registration, reduce processes, and time to register any enterprise under MSME.
The government issued a notification dated 26.06.2020, which specified that GSTIN (GST Identification Number) is mandatory for registering MSME on the Udyam registration portal. It stated that with effect from 01.04.2021, the PAN and GST of the enterprise are compulsory.
However, the government received numerous representations from various MSME Associations stating that the mandatory requirement of GSTIN is impacting the MSME registrations process. Many enterprises are exempt from filing GST Returns mandatorily under the GST Act or notification.
An enterprise whose turnover is above the threshold limit of Rs.40 lakh needs to register under GST. A significant number of MSMEs have an annual turnover less than the threshold limit and thus exempted from registration under the GST Act.
After examining the representations, the Ministry of MSME notified for aligning the mandatory requirement for filing GST returns with those enterprises that are exempted from filing returns on the Udyam registration portal on 05.03.2021. Thus, the MSME proprietor can now use only his/her PAN card for registering the enterprise.
For obtaining the MSME registration, the proprietor must click on the ‘For New Entrepreneurs who are not Registered yet as MSME’ button on the homepage of the Udyam registration portal. Upon clicking the button, the registration page for MSME will open. The proprietor needs to enter his/her PAN, and he/she will receive an OPT on the registered number.
After entering the OPT on the registration page, the proprietor will have to fill in all details regarding his/her enterprise in the registration form. Once the registration form is submitted, the proprietor will receive the Udyam Registration Certificate (MSME Registration Certificate) after a few days.
The Udyam registration portal is a roaring success. It has received an extensive response from the stakeholders because of its objectivity, transparency, simplicity and user-friendliness. The registration portal has achieved a total registration of 25,20,341 as of 05.03.2021.
MSME plays a significant role in the growth of India’s economy by its contribution to the production, exports and employment sector. They promote the industrialisation of rural and backward areas, thereby reducing regional imbalances. The various schemes and incentives given to the MSMEs by the government encourage the proprietors for establishing and expanding their business ideas.
The simplification of the MSME registration process will further help various MSMEs for obtaining registrations with ease. The MSMEs include skilled craftsmen, artisans and enterprises in the informal sector/unorganised sector. The registration process is entirely online, paperless, and there is no requirement of uploading any documents. The proprietor needs to submit the Aadhaar card and PAN card details for registration, and the GSTIN is no longer required.
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