Following the Atmanirbhar scheme and for facilitating ease of doing business, Union Ministry of Micro, Small and Medium Enterprises (MSME), vide its Notification Dated 26.06.2020, notifies the new definition of MSME and new registration process known as – ‘Udyam Registration’
In that context, a new portal is introduced known as “UDYAM REGISTRATION PORTAL” which becomes effective from 01.07.2020.
You can refer our previous article for a brief on Udyam registration https://taxguru.in/corporate-law/udyam-registration-new-existing-msmes-wef-01-07-2020.html
The new registration process comes up with various new angles and is very distinctive from the old process.
|KEY POINTS OF DIFFERENCE BETWEEN NEW AND OLD REGISTRATION PROCESS|
|BASIS OF DIFFERENCE||Udyog Aadhar memorandum||Udyam Registration|
|Aadhar Number||Earlier we can take multiple registrations while using one Aadhar||Now one Aadhar one Udyam registration
One enterprise shall only have on Udyam registration.
|PAN validation||No PAN validation||Now PAN validation is mandatory and all the enterprises registering with portal must have PAN and GSTIN.|
|Number of employees||Earlier only the number of employees is to be entered.||Now segregation must be given as per Gender.|
|Linkage with Income tax, PAN and GST department||Earlier all figures are to be entered manually on a self-declaration basis.||Now, the Udyam portal is lined up with other departments and all the details should be as per ITR (last year filed) and GST.|
|Composite criteria for the classification of MSMEs||Earlier enterprises were classified into two sectors manufacturing and service sector, and there are separate limits for both the sectors for classification of the same.||Now there are the composite criteria for both the manufacturing and service sector. There is the same limit of Investment and annual turnover for both the sectors for classification.|
|Amounts of investment had been manually entered.||Investment gets auto-filled based on last year’s filed ITR.
And in case of the new enterprise, must be filled on a self-declaration basis and this relaxation is available till 31st March after that updation is required, else certificate gets suspended.
|Registration Certificate||Udyog Aadhar Memorandum (UAM) is issued instantly at the time of registration only.||After applying an Udyam Registration Number is issued and Udyam Registration Certificate shall be issued only after verification.|
New things introduced through Udyam registration w.e.f. 01.07.2020:
1. Udyam Registration Certificate will have a dynamic QR Code from which the web page of Portal and details about the enterprise can be accessed.
2. Income tax, GST and PAN department are linked with the portal for verification of all the information.
3. The criteria of the classification i.e., investment and turnover of enterprises are now composite for both the manufacturing and service sector.
4. Existing registered enterprises have to re-register with the new portal before 31.03.2021.
5. PAN and GSTIN are mandatory for registration:
6. PAN and GSTIN are mandatory for registration on or after 01.04.2021.
7. The registration of the following two portals are also integrated with Udyam Registration Portal for the facilitation of MSME and ease of doing business:
8. Re-classification of the existing registered enterprises following the new definition:
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