Retail and wholesale trade were left out of the ambit of MSME. Under the revised guidelines, MSME has issued order to include retail and wholesale trade as MSME and extending to them the benefit of priority sector lending under RBI guidelines. The revised guidelines will benefit 2.5 Cr Retail and Wholesale Traders.
Government announces inclusion of Retail and Wholesale trades as MSMEs
Posted On: 02 JUL 2021
Minister of MSME and Road Transport and Highways Shri Nitin Gadkari today announced revised guidelines for MSMEs with inclusion of Retail and Wholesale trades as MSMEs. In a Tweet he said under the leadership of PM Shri Narendra Modi Ji, we are committed to strengthening of MSME and make them engines for economic growth. Shri Gadkari said the revised guidelines will benefit 2.5 Crore Retail and Wholesale Traders. He said Retail and wholesale trade were left out of the ambit of MSME, now under the revised guidelines, retail and wholesale trade will also get benefit of priority sector lending under RBI guidelines. With the revised guidelines the Retail and wholesale trades will be now be allowed to register on Udyam Registration Portal.
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No. 5/2(2)/2021-E/P & G/Policy
(E-19025)
Government of India
Ministry of Micro, Small & Medium Enterprises
(Policy Division)
*****
710, Nirman Bhawan, New Delhi
Dated:02.07.2021
OFFICE MEMORANDUM
Subject: Activities (NIC code) under MSMED Act, 2006 for Udyam Registration -Addition of Retail and Wholesale Trade- regarding
This Ministry’s O.M. No. UAM/MC/01/2017-SME dated 27.06.2017 on the subject ‘Activities (NIC codes) not covered under MSMED Act, 2006 for registration of Udyog Aadhaar Memorandum (UAM)’ excluded certain activities from registration on UAM Portal. This O.M. was further validated for Udyam Registration vide O.M. no. 5/2(1)/2020-P&G/Policy dated 17.07.2020. Certain changes were made vide 5/2(1)/2020/E-P&G/Policy dated 01.12.2020; where it was clarified that in Table. 1 of O.M. No. UAM/MC/01/2017-SME dated 27.06.2017, NIC codes 45, 46 and 47 and the activities mentioned against these NIC codes, are not permitted for registration in Udyam Registration Portal (https://udyamregistration.gov.in).
2. The Government has received various representations and it has been decided to include Retail and wholesale trades as MSMEs and they are allowed to be registered on Udyam Registration Portal. However, benefits to Retail and Wholesale trade MSMEs are to be restricted to Priority Sector Lending only.
3. Accordingly, the list of eligible additional activities under NIC Code 45, 46 and 47 are as under :
| 45 | Wholesale and retail trade and repair of motor vehicle and motorcycles |
| 46 | Wholesale trade except of motor vehicles and motor cycles |
| 47 | Retail Trade Except of Motor Vehicles and motor cycles |
4. The Udyam Registration is allowed for above three NIC Codes and activities mentioned against them.
5. The Enterprises having Udyog Aadhaar Memorandum (UAM) under above three NIC Codes are now allowed to migrate to Udyam Registration Portal or they can file Udyam Registration afresh.
6. Consequent upon above changes, para 2 including Table. 2 mentioned in O.M. no 5/2(1)/2020/E-P&G/Policy dated 01.12.2020, stands omitted.
(A.K. Tamaria)
Deputy Director (Policy)
Distribution:
1. Secretary, Department of Financial Services, Ministry of Finance.
2. Secretary, Department for Promotion of Industry and Internal Trade, M/o Commerce & Industry.
3. CGM, RBI with reference to RBI letter no. FIDD.CO.Plan/871/04.09.001/2020-21 dated 29.01.2021 and letter dated 10.05.2021.
4. AS& DC, 0/o Development Commissioner, Ministry of MSME
5. AS&FA, Ministry of MSME
6. All Joint Secretaries/EA/DDG, Ministry of MSME
7. CEO, KVIC
8. CMD, NSIC
9. All ADCs/DDG, Office of DC(MSME), Ministry of MSME
10. All AlAs/Directors/Joint Directo/In-Charge Directors, MSME-Dls
11. On the website of Ministry/DC-MSME, in the Section related to Udyam Registration, for the information of all stakeholders in the MSME Sector
12. NIC- For taking necessary action to make suitable changes in Udyam Registration Portal to include NIC Coode 45, 46 and 47 for registration under service enterprise category.
Copy to information:-
i. PS to Hon’ble Minister (MSME), for kind information of Hon’ble Minister (MSME)
ii. PS to Hon’ble MoS (MSME), for kind information of Hon’ble Mos(MSME)
iii. PPS to Secretary (MSME).
No. 5/2(1)/20201E-P&G/Policy
Government of India
Ministry of Micro, Small & Medium Enterprises
(Policy Division)
Nirman Bhawan, New Delhi
Dated: 01.12.2020
OFFICE MEMORANDUM
Subject: Activities (NIC codes) not covered (with exception of certain categories) under MSMED Act, 2006 for Udyam Registration-regarding
In partial modification of the O.M. No. UAM/MC/01//2017-SME dated 27.06.2017 on the subject Activities (NIC codes) not covered under MSMED Act, 2006 for registration of Udyog Aadhaar Memorandum (UAM), as further validated for Udyam Registration vide O.M. no. 512(1)/2020-P&G/Policy dated 17.07.2020, it is clarified that the activities in Table.1 below would also not be included in the manufacture or production of goods or providing or rendering of services in accordance with Section 7 of the Micro, Small and Medium Enterprise Development Act, 2006 and, hence, may be treated as included in Table 1 of the aforesaid O.M.
Table.1
| National Industrial Classification (Nic) Division | Description |
| 92 | Gambling And Betting Activities |
2. Even though the enterprises involved in activities pertaining to the Divisions mentioned in Table.1 above and also in Table 1 of the O.M.dated 27.06.2017 are barred from registration as MSMEs, in view of the nature of activities (production of goods and services), the following categories at the sub-class level (in 5 – digit) of the National Industrial Classification as mentioned in Table.2 below, are to be treated as exceptions in the Divisions thus mentioned in the said O.M. dated 27.06.2017 as per Section 7 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, and are eligible for registration under Udyam Registration system and, hence, may be treated as included in Table 2 of the O.M. dated 27.06.2017.
Table.2
| Sub-Class Level under National Industrial Classification (NIC) Division 45200 |
Description |
| 45403 | Maintenance and repair of motor vehicles Maintenance and repair of motor cycles, mopeds, scooters and three wheelers |
0.12-.>”
(A. K. Tamaria)
Deputy Director (Policy)
Distribution:
1. AS&DC, 0/0 Development Commissioner, Ministry of MSME
2. AS&FA, Ministry of MSME
3. All Joint Secretaries/EA/DDG, Ministry of MSME
4. All ADCs/ DOG, Office of DC(MSME), Ministry of MSME
5. Ail AlAs! Directors/ In-Charge Directors, MSME-Dls.
6. On the website of Ministry / DC-MSME, in the Section related to Udyam Registration, for the information of all stakeholders in the MSME Sector
7. NIC – For taking necessary action in the system
Copy to:
PS to Hon’ble Minister (MSME), for kind information of Hon’ble Minister (MSME)
PS to Hon’ble MoS (MSME), for kind information of Hon’ble MoS (MSME)
PPS to Secretary (MSME), for kind information of Secretary (MSME)
PPS to Secretary, Department of Financial Services, Ministry of Finance, with a request to Secretary for
circulation of the instant O.M. to the RBI, the Banks and other Financial Institutions, as deemed appropriate.
5/2(1)/2020-P&G/Policy
Government of India
Ministry of Micro, Small & Medium Enterprises
Office of Development Commissioner
** *
Nirman Bhawan, New Delhi-110108
Dated: 17.07.2020
OFFICE MEMORANDUM
Subject: Substitution of “Udyog Aadhaar Memorandum (UAM)” with “Udyam Certificate” in the OM no. UAM/MC/01/2017-SME dated 27.06.2017 on the subject Activities (MC codes) not covered under MSMED Act, 2006 for registration of Udyog Aadhaar Memorandum (UAM) — regarding
Kindly refer UAM/MC/01/2017-SME dated 27.06.2017 issued by SME section in connection with the above subject matter (Enclosed herewith).
2. In this regard, I am directed to state that “Udyog Aadhaar Memorandum (UAM)” is replaced with “Udyam Registration Certificate” in the above-said OM, with immediate effect.
3. This issues with the approval of the Competent Authority.
(A.K Tamaria)
Deputy Director
Ph.:01123061163
Enclosure: As above
To
(i) JS (ARI)/ JS (SME)/ JS (AFI)/ EA/ DDG, M/o MSME
(ii) ADC (PS)/ ADS (SM)/ ADC (AS)/ DDG, O/o DC (MSME)
(iii) AIA/ All Directors, 0/o DC (MSME)
(iv) All AIA/ Director/ Director incharge, MSME-DIs — requested to circulate this OM amongst all District Industries Centres
(v) Senior Technical Director, NIC – requested to upload this OM on Champions Portal and Udyam Registration Portal
Copy to:
(i) PS to Minister (MSME)/ PS to MoS
(ii) PPS to Secretary (MSME)
(iii) PPS to AS&DC (MSME)
(iv) PPS to AS&FA, M/o MSME
F.No. UAM/MC/01/2017-SME
Government of India
Ministry of Micro, Small & Medium Enterprises
(SME Section)
* * *
Udyog Bhawan, New Delhi
Dated: 27.06.2017
OFFICE MEMORANDUM
Sub: Activities (NIC codes) not covered under MSMED Act, 2006 for registration of Udyog Aadhaar Memorandum(UAM)- regarding
The undersigned is directed to inform that Sub Section 1 of Section 7 of Micro Small or Medium Enterprises Development Act 2006 provides for classification of enterprises engaged in manufacturing or production of goods as well as enterprises engaged in providing or rendering of services as micro, small and medium based on investment in plant and machinery and equipment respectively. Sub Section 1 of Section 8 provides that any person who intends to establish a micro or small or medium enterprise engaged in manufacture or production of goods or providing or rendering of services may at his discretion shall file a memorandum of micro, small or medium enterprises in accordance with the provisions of Act. Subsequently, Ministry of Micro Small or Medium Enterprises notified vide notification number S.O. 2576 (E) dated 18.9.2015 and subsequent notification No. SO 85(E) dated 10.1.2017 for registration of Udyog Aadhaar Memorandum for Micro, Small or Medium Enterprises. In this context it is further clarified that the activities in Table.1 below would not be included in the manufacture or production of goods or providing or rendering of services in accordance with Section 7 of the Micro, Small and Medium Enterprise Development Act, 2006:-
Table.!
| _NIC Code | Activity |
| 02 | Forestry and logging |
| 03 | Fishing and aquaculture |
| 45 | Wholesale and retail trade and repair of motor vehicle and motorcycles |
| 46 | Wholesale trade except of motor vehicles and motor cycles 47 |
| 47 | Retail Trade Except of Motor Vehicles and motor cycles |
| 97 | Activities of households as employees for domestic personnel |
| 98 | Undifferentiated goods and services producing activities of private households for own use |
| 99 | Activities of extraterritorial organization and bodies |
2. The NIC 2-digit activity 01- crop, animal production, hunting and related activities would also not be included as per Section 7 of the Act except for the sub-classes of activities at 5-digit level given in Table 2.:
Table. 2
| NIC Code | Activity |
| 01462 | Production of eggs |
| 01463 | Operation of poultry hatcheries |
| 01492 | Bee- keeping and production of honey and beeswax |
| 01493 | Raising of silk worms, production of silk worm cocoons |
| 01612 | Operation of agricultural irrigation equipment |
| 01620 | Support activities for animal production |
| 01631 | Preparation of crops of primary markets i.e. cleaning, trimming, grading disinfecting |
| 01632 | Cotton ginning, cleaning and bailing |
| 01633 | Preparation of tobacco leaves |
| 01639 | Other post-harvest crop activities, n.e.c |
| 01640 | Seed processing for propagation |
(K. S. Ngangbam)
Deputy Director (SME)
Tel.No. 23061546
Distribution:
(i) AS&DC, 0/o Development Commissioner, Ministry of MSME.
(ii) JS(SME)/JS(ARI)/JS(TC), Ministry of MSME.
(iii) All Director, MSME-DIs
(iv) All GM, District Industries Centres.
Copy to:
(i) PS to Minister(MSME)/PS to MoS(GS)/PS to MoS(HPC)
(ii) PPS to Secretary(MSME)
Author Bio
Dear Mr. Minocha
Please clarify that a manufacturer in MSME can file a claim for delayed payment from buyer, as per new amendment for the addition of Wholesale trader of industrial raw material to MSME MANUFACTURER can claim delayed payment or not.
Thanks and regards
p k gupta
7717384143