GSTIN not mandatory for MSME Udyam Registration, notifies govt

New Delhi, Mar 9 (KNN) The Ministry of Micro, Small, and Medium Enterprises (MSME) has notified that GSTIN is not mandatory for MSME Udyam Registration.

The Central Government amended in the notification of Government of India, Ministry of MSME number S.O. 2119 (E), dated the 26th June, 2020.

The definition and details, as given in the notification dated June 26, 2020, had specified GSTIN as one of the mandatory conditions for registration on the Udyam Registration Portal, with effect from 01.04.2021.  However, a number of representations were received from various MSME Associations stating that the measure of making GSTIN mandatory is impacting the registration process as many enterprises are exempt from the mandatory requirement of filing GST Returns as per the GST Act/notifications.

They also noted that annual turnover for several MSME might be less than the threshold limit for exemption from registration under GST Act.

''The matter has been examined and a notification has been issued by the Ministry of MSME on March 5, 2021 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,'' an official statement added.

The objective of the portal is to provide a single-page registration, consume less time and simplify processes of registering any enterprise under MSME.

The statement further said that the Udyam Registration portal has been a roaring success, with massive response from the stakeholders on account of its simplicity, objectivity and transparency, besides user-friendliness.

''As on 5.3.2021 (6.53 PM), the Udyam registration portal has achieved a total registration of 25,20,341,'' the statement added.

This facilitation would further help various micro enterprises including skilled craftsmen and artisans and other enterprises in the informal sector/unorganised sector to get the registration done easily.

The proprietor may use his or her PAN for registration of the enterprise in the Udyam Registration Portal, it said.