Not sure which category to choose to apply for your MSME Udyam? This blog provides a comprehensive guide to help you make the right choice for your business. 

The Ministry of Micro, Small, and Medium Enterprises issued a notice on September 28, 2021, clarifying the selection of the fiscal year for Udyam registration Online. The fiscal year is required to get detailed information on business investment, revenue and export value for MSME classification when registering on the Udyam portal. This article presents explanations from MSME on the selection of the fiscal year for Udyam registration. 

Summary of MSME Notice 

The Ministry of Micro, Small and Medium Enterprises  received several representatives from MSME stakeholders regarding the selection of the investment fiscal year  and revenue and  export value data. password for  MSME classification when registering on the Udyam portal. 

• MSME has now clarified that investment, revenue and export details will be obtained from the Income Tax Department and the GSTN of the relevant fiscal year for  MSME classification. 
• For submission on the Udyam portal for the fiscal year 2020-21, the data (Investment, Revenue and Exports) for the financial year 2018-2019 are extracted from  I.Department T.  and GSTN. 

Classification of MSMEs and Udyam Registration 

This unit classifier is micro, small and medium on the basis of investment in plant, machinery or equipment. This new  MSME classification was published in Notice No.O. (E) June 26, 2020. Anyone who intends to establish an MSME must submit an online Udyam Registration at the Udyam Registration portal.The notice also includes the following procedures: 

•  General investment and revenue criteria for classification 
•  Calculation of investment in plant and machinery or equipment 
•  Calculation of revenue 
•  MSME application process Udyam 
•  Business Registration Current 
•  Information Updates and Transition Times in the Udyam Portal 
•  Business Facilitation and Claims Resolution 

 GSTIN is not required for MSME registration by Udyam  

 The government previously stipulated that PAN and GSTIN were required for Udyam's MSME registration. Empty the S.O message. 1055(E)  March 5, 2021  relaxed conditions. 

 Then Notice No.THEREFORE. (E) June 26, 2020, as amended on 05.03.2021 to facilitate a waiver of the GSTIN requirement under the CGST Act 2017. 

•  In the event that a sole proprietorship is not registered under any central or state government, the owner may use it. Their PAN to sign up. companies in the Udyam registry portal. 
•  MSMEs also clarify that a PAN is required for all other types of businesses to register for Udyam.

Investment and revenue details for Udyam registration

•  MSME has announced that investment and revenue data is automatically filled/retrieved by the income tax department and GSTN for entities that have already paid income tax and income tax returns. 
• GST tax returns Investment and revenue must be self-filed - reporting basis of companies that have not yet filed  I.T. and GST declaration. 

 Note: Data is automatically populated/retrieved from  I.T.Ministries and GSTNs are data completed by respective Ministries after rectification for the relevant Fiscal Year. 

MSMEs Udyam Registration for the fiscal year 2020-21 

 The Ministry of Micro, Small, and Medium Enterprises clarifies that in order to submit on the Udyam portal for the fiscal year 2020-21, the data for the financial year 2018-2019, relating to investment and revenue of the Income Tax Department and the Goods and Services Tax Network, were automatically filled in to avoid any discrepancies in the data that could affect the MSME classification. 

Learn more about how to forgot udyam registration number

For the 2018-2019 fiscal year, the deadline for filing tax returns is July 2019. In addition, the GST filing process for the 2018-2019 fiscal year follows the same deadlines. Thus, frozen data from 2018-2019 were taken into account for MSME registration and classification in 2020-21.

However, choosing the right category can be confusing as there are several options available depending on the size and investments of the business. This article has provided a complete guide on how to choose the right category for your business. Considering factors such as revenue, investment, and nature of operations, you can choose the right category for your business needs and goals. Proper classification will not only help you access financial aid, but it will also improve your marketability and credibility in the business world. So take the time to make an informed decision when applying for MSME Udyam and give your business the boost it deserves.

Conclusion

Registering for MSME Udyam is a crucial step for small businesses in India to avail various government schemes and benefits. However, choosing the right category can be confusing, as there are multiple options available based on the business's size and investment. This article has provided a comprehensive guide on how to choose the appropriate category for your business. By considering factors such as turnover, investment, and nature of operations, you can select the category that aligns with your business needs and goals. Proper categorization can not only help you access financial assistance but also enhance your marketability and credibility in the business world. So, take the time to make an informed decision while registering for MSME Udyam, and give your business the boost it deserves.