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Validity Of Udhyog Aadhaar Extended Till Dec 31, 2021; MSME Entrepreneurs Can Register For Free!

The Ministry of Micro, Small, and Medium Enterprises (MSME) has extended the validity of Entrepreneurs Memorandum (EM) Part-II and Udyog Aadhaar Memorandums (UAMs) from March 31 to December 31, 2021.

This extension will provide a sigh of relief as it will facilitate the holders to avail the benefits of the provisions under various existing schemes and incentives. The numerous benefits will also include Priority Sector Lending benefits for MSMEs.

All enterprises registered until June 30, 202, were earlier required to file a new registration on the Udyam Registration Portal before March 31, 2021.

UAM is a single-page registration form that involves a self-declaration format. In this form, the MSME entrepreneur will have to self-certify the existence of his/her enterprise, bank account details, owner`s AADHAR details, and other required official information.

According to an IBEF report, India has about 6.3 crore MSMEs majorly dominated by micro-enterprises, and the number of registered MSMEs grew 18.5 percent Y-o-Y to reach 25.13 lakh (2.5 million) units in 2020 from 21.21 lakh (2.1 million) units in 2019.

As of June 17, 2021, the portal has facilitated the registration and classification of more than 33 lakh enterprises, as per the official data.

According to the official statement issued by the MSME ministry, “the said amendment has been carried out considering the hardships faced by MSMEs during the prevailing COVID-19 situation and the representations received from the various MSME associations, financial institutions, and government departments dealing with the interest of MSME Sector”.

The MSME ministry expects the smooth migration of the existing UAM holders to the new system of Udyam registration, which was launched in July 2020. They would avail the benefits of the government schemes, thereby paving the way for empowering & strengthening MSMEs and leading to their faster recovery, boost to their economic activity and creation of jobs.

It is a one-time registration, and hence, no renewal is necessary. A permanent registration number is provided post the registration, and after completion of the process, an online certificate will be issued.

The enterprises can register for free on https://udyamregistration.gov.in and without any documents. However, they will require PAN and Aadhaar cards for registering on the Udyam portal.

Aadhaar Authentication to Help Businesses Get GST Registration Within 3 Days

In what is believed to be a major boost for businesses in India, the businesses that provide Aadhaar number while applying for registration under the Goods and Services Tax (GST) will get the approval in three working days. Last week, the Central Board of Indirect Taxes and Customs (CBIC) had notified Aadhaar authentication for GST registration with effect from August 21, 2020. The notification also provides that in case businesses do not provide Aadhaar number, then GST registration would be granted only after physical verification of the place of business.

Sources believe that the Aadhaar authentication is expected to facilitate genuine and honest taxpayers while at the same time keeping fake and fraudulent entities away from GST.

Two important things to know:

For a person opting for Aadhaar authentication for new GST registration would get it within just three working days, if no notice is issued and would not need to wait for physical verification.
While applicants not opting for Aadhaar authentication for GST registration would be granted it only after physical verification of the place of business or documentary verification which may take up to 21 working days or more if notice is issued, sources said.

According to a report by PTI, sources of the Finance Ministry said the GST Council in its 39th meeting held on March 14, 2020, had approved operationalisation of Aadhaar authentication for new taxpayers. However, its implementation was postponed due to the lockdown on account of COVID-19 pandemic.

Sources further said that keeping the COVID-19 pandemic in view, it has been provided that the officer may, if the circumstances warrant, opt for asking for additional documents in lieu of the pre-registration for physical verification of the premises.