Ease of doing business for MSMEs: The MSME Ministry has clarified that there won’t be any change in benefits availed by enterprises registered on the Udyam portal and classified as per the MSME definition between April 1 and June 7, 2022. The clarification was made because the income tax department’s portal, from where the Udyam portal fetches data for MSME classification, was under updation during the said period.
“If MSMEs who registered during 01-04-2022 to 07-06-2022 have availed of any benefit based on the classification done during that period, the benefits availed of will stand,” the clarification available on the ministry’s Udyam portal read.
For the uninitiated, the Udyam portal fetches ‘frozen’ MSME data on investment and turnover from the income tax and GSTN portals to classify a registered enterprise as micro, small or medium. For instance, the data used for enterprises registered in FY22 is of FY20.
In the current scenario, due to the non-availability of data for FY21 between April 1 and June 7 because of the income tax portal’s updation in the corresponding period of FY23, the classification of registered MSMEs was done on the basis of data for FY20.
However, after the updation, Udyam certificates classified for FY23 have been updated based on the data of FY21. “Such MSMEs who have registered during the period 01-04-2022 to 07- 06-2022 are advised to download their updated certificates classified for the period 2022-23 based on the data of FY2020-21 from the Udyam Registration Portal,” the clarification noted.
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Udyam is an online and paperless registration process based on self-declaration. MSMEs don’t have to upload any documents except their Aadhaar number. As of October 25, nearly 1.16 crore MSMEs were registered, of which 1.10 crore were micro, 4.19 lakh were small businesses and 39,116 enterprises were medium.
Importantly, 35,501 Udyam enterprises had withdrawn their registration due to multiple reasons till July 15 since the launch of the portal on July 1, 2020. Out of the total withdrawals, 67 per cent or 24,075 registrations were withdrawn in the previous financial year 2021-22 while 931 registrations were withdrawn in FY21 and 10,495 enterprises had withdrawn their licenses in the current fiscal, as per data shared by the Minister of State for MSMEs Bhanu Pratap Singh Verma in Lok Sabha in July this year.
