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. |
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| 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:
- In the case of a Company, LLP, Cooperative Society, Trust, Society, GSTIN and PAN along with its Aadhaar number are mandatory.
- In the case of the proprietor, you can continue with Aadhar only on a self-disclosure basis but before 03.2021 you must apply for PAN & GST number and must update the same on the portal.
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:
- Government e-Market (GeM) portal, and
- TReDS portal
8. Re-classification of the existing registered enterprises following the new definition:
- For ascertaining an enterprise as micro, small or medium, an enterprise must fulfill both the criteria i.e., investment and turnover. If the enterprise crosses the ceiling limit of even one criterion, then it will cease to exist in that category and be placed in the next higher category.
- But the enterprise cannot be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.
- In case of an upward change (from a lower to a higher category i.e. Micro to small), an enterprise will maintain its prevailing status till the expiry of one year from the close of the year of registration.
- In case of reverse-graduation (sliding down to lower category i.e. Small to Micro) of an enterprise, the enterprise will continue in its present category till the closure of the financial year and it will be given the benefit of the changed status only with effect from 1st April of the financial year following the year in which such change took place.
Disclaimer
This article is for informational purposes only and is intended, but not promised or guaranteed, to be correct, complete, and up-to-date. Whitespan Advisory does not warrant that the information contained in this article to be accurate or complete, and hereby disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause.
Please feel free to contact the undersigned in case you require any further information/ clarification on the above article.
Atul Singh & Garima Bansal
atul@whitespan.in | garima@whitespan.in
Author Bio
I am the owner of two proprietorship, I have udyam registration for one firm but I am unable to registered the other firm from my single Pan on udyam portal because one can not take more than one UDYAM registration with a single PAN. Please suggest how can I apply for udyam registration for my other firm
I have registered my company known as mainteaince repairservice already register under msme. Now I am intending to undertake some other business under same registration. Is that possible? If not please suggest how to perform another business
I have registered my company known as East Point Security services and house keeping services Pvt Ltd under msme. Now I am intending to undertake some other business under same registration. Is that possible? If not please suggest how to perform another business.
I am the owner of two proprietorship, I have udyam registration for one firm but I am unable to registered the other firm from my single Pan on udyam portal because one can not take more than one UDYAM registration with a single PAN. Please suggest how can I apply for udyam registration for my other firm
I am the owner of two proprietorship, I have udyam registration for one firm but I am unable to registered the other firm from my single Pan on udyam portal because one can not take more than one UDYAM registration with a single PAN. Please suggest how can I apply for udyam registration for my other firm
Sir, I am the owner of two proprietorship firm, I have udyam registration for one firm but I am unable to registered the other firm from my single Pan on udyam portal because one can not take more than one UDYAM registration with a single PAN. Please suggest how can I apply for udyam registration for my other firm.
Can Tax Guru inform us that, we are register our firm with Roc on 30 June 2020, with Company Gst and Pan in service sector, we can register for Udyam Aadhaar, or we have to do after 30 march 2021, please acknowledge
In the NIC code category for Service Sector my company is into Marketing and Selling of Hygiene related products….This does not fit in any of the NIC code category…and filling NIC code is mandatory what should i do
1. how to update GSTIN and PAN on portal? I am not able to find links/option for same anywhere.
Answer: A new tab is inserted on UDYAM portal named “Update UDYAM Registration” but the service has not been started till date. It is expected to be working by the end of the September, 2020.
2. I am an individual who runs a sole proprietorship business by myself. Along with this, I am also the managing partner in a partnership firm.
I have applied for Udyam registration of my proprietary business using my aadhaar number.
Now when I try to apply for registration of my partnership firm using my same aadhaar number, it says only one registration can be obtained for one aadhaar number.
There are only two partners in the firm & since both of us have proprietary businesses, we have used our aadhaar numbers for obtaining Udyam registration of our respective businesses.
Please guide us on how to proceed further for registering our partnership firm under Udyog, using my aadhaar number, which is already used for my sole proprietary concern.
Answer: As per the notification of Ministry dated 26.06.2020, only one UDYAM registration can be taken on one Aadhar number. And for registering partnership firm, Aadhar number of Partner is required. Please contact atul@whitespan.in and garima@whitespan.in for more clarity. We are happy to help you.
how to update GSTIN and PAN on portal? I am not able to find links/option for same anywhere.
I am an individual who runs a sole proprietorship business by myself. Along with this, I am also the managing partner in a partnership firm.
I have applied for Udyam registration of my proprietary business using my aadhaar number.
Now when I try to apply for registration of my partnership firm using my same aadhaar number, it says only one registration can be obtained for one aadhaar number.
There are only two partners in the firm & since both of us have proprietary businesses, we have used our aadhaar numbers for obtaining Udyam registration of our respective businesses.
Please guide us on how to proceed further for registering our partnership firm under Udyog, using my aadhaar number, which is already used for my sole proprietary concern.
Query: While registering for UDYAM, Turnover Field is not auto filled in registration form ?
Answer: Information as regards to turnover for an enterprise shall be linked to the GSTIN No. under Central Goods and Services Act, 2017 and the UDYAM Portal will verify the Information as regards to turnover for an enterprise from last year filed GST Return.
The boxes for the same are not filled at the time of submission, the amount of turnover is to be checked by the portal at back end after submission of the application. However, while generating UDYAM Certificate, the amount of Turnover gets auto filed and unchangeable. The applicant need to fill the amount of Export Turnover physically, which should be excluded for calculation of Turnover for the entity.
Further, Applicant file application on a self-declaration basis who do not have filed even one return under GST can fill the details on self- declaration basis and shall file the application on or before 31.04.2021 with filed GST details.
As per official notification of Ministry of Micro, Small And Medium Enterprises (MSME) dated 26.06.2020, the eligible enterprises who do not have PAN will be considered on self-declaration basis for a period up to 31st March, 2021 and thereafter, PAN and GSTIN shall be mandatory. However, enterprises taking registration on self-declaration basis, PAN and GSTN both are mandatory and updating of details on or before 31st March 2021 shall be required.
After taking GSTN enterprise must update information on the Udyam portal on a self-disclosure basis. And if the enterprise fails to update the same, the status of the enterprise gets suspended.
Therefore, enterprise must take GST registration mandatorily to remain register under UDYAM portal and to avail
various benefits under Govt. initiatives.
Whether traders will now be allowed to register under msme?