MSME Relaxation: The validity of UAMs is extended till December 31, 2021

The Udyog Aadhaar Memorandum has been extended by the Ministry of Micro, Small, and Medium Enterprises till December 31, 2021.

The Ministry of Micro, Small, and Medium Enterprises modifies original notification No. S.O. 2119 (E) dated 26.06.2020, extending the validity of EM Part-II and UAMs from 31.03.2021 to 31.12.2021. This would allow holders of EM Part-II and UAMs certificates to take advantage of provisions under different current programs and incentives, such as MSME’s Priority Sector Lending advantages.

Various MSME groups, financial institutions, and government ministries dealing with the MSME sector have submitted complaints to the ministry, outlining the difficulties encountered by MSMEs during the COVID-19 epidemic.

Also, Read- udyam registration

Highlights include:

1. Existing EM Part-II and UAM holders have to transfer to the new Udyam Registration system, which became live on July 1, 2020.

2. The deadline for migrating to the new site was set for March 31, 2021.

3. This phase aims to support MSMEs, allowing them to recover faster, increase their economic activity, and create employment.

4. At the udyam registration portal, a new portal named “Udyam Registration” was launched.

5. There is no charge to register on the new site, and the deadline for migration has been extended until December 31, 2021.

6. Registration on the Udyam site requires only a PAN and an Aadhaar number.

AN IMPORTANT PRESS RELEASE:

The Udyog Aadhaar Memorandum has been extended by the Ministry of Micro, Small, and Medium Enterprises till December 31, 2021.

By issuing notification No. 2347(E) dated 16.06.2021, the Ministry of Micro, Small, and Medium Enterprises has modified the previous notice No. S.O. 2119 (E) dated 26.06.2020, extending the validity of EM Part-II and UAMs from 31.03.2021 to 31.12.2021. Holders of EM Part-II and UAMs will be able to take advantage of a variety of existing programs and incentives, such as MSME’s Priority Sector Lending benefits.

The stated change was made in light of the difficulties encountered by MSMEs during the current COVID-19 scenario, as well as representations received from different MSME associations, financial institutions, and government ministries concerned with the MSME sector’s interests.

Existing EM Part-II and UAM holders are expected to be able to migrate to the new Udyam Registration system, which went live on July 1, 2020, and take advantage of government schemes, paving the way for MSMEs to be strengthened and grow faster, resulting in increased economic activity and job creation.

GSTIN Not Mandatory for MSME Udyam Registration:

The government had previously said that PAN and GSTIN are mandatory for MSME Udyam Registration as of March 31, 2021, but has now eased the criteria and stated that the exemption from the GSTIN need would be as per the terms of the Central Goods and Services Tax Act, 2017. It further said that if a proprietorship enterprise is not registered by any Central Government or State Government Act or Rule, the proprietor may use his or her PAN to register the business on the Udyam Registration site and that for all other types of businesses, a PAN is required.

Registration of New Businesses:

  • Aadhar Number shall be required for registration at Udyam Registration portal.
  •  All businesses that are currently registered under EM–Part-II or UAM (i.e., those with an existing Udyog Aadhar) must re-register on the Udyam Registration portal.
  •  Businesses will be categorised according to new criteria.
  •  Current registrations will be valid until Dec 31, 2021.

Suggested Read- print Udyog aadhaar certificate

Procedures for After-Registration

1. The companies will be assigned an Udyam Registration Number (URN).

2. Once a URN is assigned, businesses must amend their prior year’s ITR and GST returns on the Udyam Registration portal.

3. If information is not updated within the specified time frame, MSME status may be suspended.

4. Once the enterprise’s details have been changed, the status of the firm will be updated on the site.

5. If the state of the application changes, a message must be made to the organization.

6. If the enterprise’s status is upgraded, it must maintain its current status for one year from the end of the registration year.

7. If the enterprise’s status is changed lower, the enterprise’s status will be maintained until the conclusion of the financial year. The benefits of the new status will begin on April 1st of the following year.

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