Extension of Validity of Documents for Ascertaining MSME Classification

Extension of Validity of Documents for Ascertaining MSME Classification

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Extension of Validity of Documents for Ascertaining MSME Classification

Ministry of Micro, Small and Medium Enterprises (MSME), vides Gazette Notification no. S.O. 2134(E) dated 6th May 2022 has announced that the existing enterprises registered before 30th June 2020, shall continue to be valid only for a period up to the 30th  June 2022.

Because of the above amendment, the Reserve Bank of India has issued the Clarification on New Definition of MSME vide a Notification dated 19th May 2022. The present article briefs the RBI Clarification on the New Definition of MSME. The present article briefs the Extension of Validity of Documents for Ascertaining MSME Classification.

RBI Clarification on New Definition of MSME

RBI now clarified that the validity of documents obtained to ascertain the investment in plant and machinery for classification of MSMEs is also valid upto 30th June 2022.

Extension of Validity of Documents for Ascertaining MSME Classification

Documents for Ascertaining MSME Classification

Ministry of Micro, Small & Medium Enterprise vide their Office Memorandum (OM) F. No. 12(4)/2017-SME dated March 8, 2017, has clarified that for ascertaining the investment in plant and machinery for classification of an enterprise as Micro, Small, and Medium, the following documents could be relied upon:

  • A copy of the invoice for the purchase of plant and machinery
  • Gross block for investment in plant and machinery as shown in the audited accounts
  • A certificate issued by a Chartered Accountant regarding the purchase price of plant and machinery

The Ministry has clarified that for the investment in plant and machinery for classification of an enterprise as Micro, Small or Medium, the purchase value of the plant and machinery is to be reckoned and not the book value (purchase value minus depreciation).

Aadhaar Card and PAN Card are the only documents required for MSME registration. MSME registration is entirely online and no proof of documents is required. PAN and GST linked details on investment and turnover of enterprises will be taken automatically by the Udyam Registration Portal from the Government databases. The Udyam Registration Portal is fully integrated with Income Tax and GSTIN systems.

GST is not compulsory for enterprises that do not require a GST registration under the GST law. However, the enterprises that need to compulsorily obtain GST registration under the GST regime need to have GST registration for obtaining Udyam Registration.

Those who have UAM registration or any other registration issued by any authority under the Ministry of MSME will have to re-register themselves in the Udyam Registration Portal by clicking on the “For New Entrepreneurs who are not registered yet as MSME or those with EM-II”.

Extension of Udyog Aadhaar Memorandum (UAM) Validity

Ministry of Micro, Small and Medium Enterprises (MSME), vide Gazette Notification no. S.O. 2134(E) dated 6th May 2022 has issued an amendment to the original Notification number S.O. 2119 (E), dated the 26th June 2020.

Through this notification, Ministry has provided an amendment in Para 7 which deals with the Registration of existing enterprises.

MSME announced that the existing enterprises registered before 30th June 2020, shall continue to be valid only for a period up to the 30th June 2022.

  • The enterprises having UAM registration need to migrate to Udyam Registration by 30/06/2022.
  • If the entrepreneurs having UAM registration does not migrate to Udyam Registration by 30/06/2022, the UAM registration will be invalid and they will not be able to receive the benefits provided to the MSMEs

For more details on MSME Registration Benefits in India, Click here

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Post by Renu Suresh

Renu is experience content writer specialised in compliances and company rules.