Govt Says GSTIN not mandatory for MSME registration - Here's all You Need To Know

According to the notification of November 26, 2020, the GSTIN became one of the mandatory conditions to register on the portal, as of April 1, 2021, after which many MSME associations stated that the procedure to do The mandatory GSTIN affects the registration process.

The registration requirements for the Udyam registration portal have been further simplified.

On July 1, 2020, the Modi government's paperless portal was launched to facilitate the registration of MSMEs. The objective of the portal is to provide a one-page registration, consume less time and simplify the registration processes of any institution within the framework of MSMEs.

According to the notification of November 26, 2020, GSTIN became one of the mandatory conditions to register on the portal, as of April 1, 2021. Subsequently, many MSMEs associations stated that the procedure to make GSTIN mandatory affects the registration process as many companies are exempt from the mandatory requirements to file GST returns under the law / GST Act.

They also indicated that the annual turnover of many MSMEs may be less than the minimum registration exemption under the Goods and Services Tax Act.

The matter was examined and on March 5 the MSME notified to align the mandatory requirements for the presentation of an Udhyam registration with those for the filing GST return, for the benefit of those exempted from the filing return. Now the owner can use his personal account number to register the organization.

Udyam registration portal has received immense response from stakeholders due to its simplicity, objectivity, ease of use, and transparency.

This facilitation would also help many small businesses, including skilled craftsmen, artisans, and other informal and informal sector businesses, to register easily.

As of March 5, the Udyam registration portal has registered more than 25 lakh MSME.

Also Read: New tax regime may be beneficial if you do this