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MSME Relaxation: Validity of UAMs is extended

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

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

By notification No. 2347(E) dated 16.06.2021, the Ministry of Micro, Small, and Medium Enterprises (MSME) 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.

 

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

 

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

 

  1. A new site called “Udyam Registration” has been launched at the udyam registration portal.

 

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

 

  1. 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 should be able to transition to the new Udyam Registration system, which launched 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.

Establishing a New Business:

  • Registration through the Udyam Registration portal will require an Aadhar Number.
  • All firms that are currently registered under EM–Part-II or UAM (and have an existing Udyog Aadhar) must re-register on the Udyam Registration portal.
  • New criteria will be used to categorize businesses.
  • Current registrations are good through December 31, 2021.

Procedures for After-Registration

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

 

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

 

  1. MSME status may be suspended if the information is not updated within the prescribed time range.

 

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

 

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

 

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

 

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

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