Government Policy Initiatives for MSME

Government Policy Initiatives for MSME The Ministry of Micro, Small and Medium Enterprises (MSME) has implemented various programmes / MSME schemes, policies for the development and promotion of MSMEs Industry across the country. To provide immediate relief to the MSME sector, various announcements (in addition to the various MSME schemes) have been made under the Atmanirbahar Bharat Package. Policy Initiatives:

1. a) Udyam Registration (UR) Portal:

From July 2020, the Union Ministry of Micro, Small and Medium Enterprises introduced a new mechanism to register and classify MSMEs. Known as Udyam Registration. It provides faceless, fully online, paperless and transparent MSME registration process fully integrated with Income Tax and GSTIN systems. Total MSMEs Registered on Udyam Registration Portal during the period from 01.01.2021 to 31.10.2021 is 38,78,748. Except this portal of Government of India and Government's Single Window Systems, no other private online or offline system, service, agency or person is authorized or entitled to do MSME Registration or undertake any of the activity related with the process.

1. b) Exemption from requirement of having GSTIN

This Ministry, wide notification No. S.O.1055(E) dated 05.03.2021, has notified that the exemption from the requirement of having GSTIN shall be as per the provisions of the Central Goods and Services Tax Act, 2017 (12 of 2017), which will let more and more MSMEs to register on Udyam Registration portal. The government has earlier provided that PAN and GSTIN  is Mandatory wef 31St March 2021 for MSME Udyam Registration has now relaxed the condition and provided that the exemption from the requirement of having GSTIN shall be as per the provisions of the Central Goods and Services Tax Act, 2017. The matter has been examined and the Ministry of MSME notified on March 5 to align the mandatory requirement for filing Udyam Registration with those for filing GST Returns, in the interest of those enterprises that are exempted from filing returns. And now, the proprietor may use his or her PAN for registering the enterprise.

1. c) Inclusion of Retail and Wholesale Trade:

With effect from 2nd July, 2021, the Government has included Retail and Wholesale trades as MSMEs. They are allowed to be registered on Udyam Registration Portal. Benefits to them are restricted to Priority Sector Lending only. 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.

1. d) Inclusion of Urban Street Vendors in MSME Category:

With effect from 2nd. August. 2021, the Government has included Street Vendors as Retail Trades as MSMEs. They are allowed to be registered on Udyam Registration Portal. Benefits to them are restricted to Priority Sector Lending only. The Ministry of Micro, Small & Medium Enterprises (MSME) on August 9, 2021, has notified the Inclusion of urban street vendors in the MSME category. Ministry has clarified that the Street Vendors can register as retail trades on Udyam Registration (UR) portal.

1. e) SAMADHAAN Portal for delayed payments:

A special sub-portal within SAMADHAAN portal (https://samadhaan.msme.gov.in/) an online reporting system developed for reporting the dues and monthly payments by GOI Ministries and CPSEs to the MSMEs was launched on 14" June, 2020. Dues of Rs. 50,438.59 crore have been paid to the MSME vendors by Government Ministries/Departments/CPSUs during the period from 01.01.2021 to 31.10.2021. MSME Samadhaan is a Portal created by Office of DC (MSME), Ministry of Micro, Small and Medium Enterprises (MSME) where Micro and Small Enterprises (MSEs) can file their applications online regarding delayed payments. The application once filed is forwarded automatically online to the concerned Micro and Small Enterprise Facilitation Council (MSEFC) established by the State/UTs as per the provisions of MSMED-Act 2006. Action on the applications regarding delayed payment is taken by the concerned MSEFC only. Any Micro or small enterprise having valid Udyog Aadhar(UAM) can apply on MSME Samadhaan Portal.

1. f) A geo-tagging portal namely geotag.kvic.gov.in is prepared and is being put into operation. All the micro-enterprises setup under PMEGP will be Geo-mapped, facilitating easy location and monitoring of units. PMEGP units are being geo-tagged to provide entrepreneurs with information on similar or other type of units in the area who can be their business partners

Udyam Registration is a pre-requisite for availing the benefits of schemes/programmes of the Ministry of MSME and for availing the benefits under Priority Sector Lending of RBI. MSME registration process is fully online, paperless and based on self-declaration. No documents or proof are required to be uploaded for registering an MSME. Only Adhaar Number will be enough for registration. Those who have EM-II or UAM registration or any other registration issued by any authority under the Ministry of MSME, will have to re-register themselves.

• Source: Press info / News etc.

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