MSME Samadhaan Portal - Ease of filing application under MSEFC, an Initiative from Ministry of MSME, Govt. of India

Ministry of MSME has taken an initiative for filing online application by the supplier MSE unit against the buyer of goods/services before the concerned MSEFC of his/her State/UT. These will be viewed by MSEFC Council for their actions. These will be also visible to Concerned Central Ministries, Departments, CPSEs, State Government, etc for pro-active actions.

This portal is specifically designed for Micro and Small Enterprises to file complaints regarding delayed payments by buyers.

Step 1:CLASSIFICATION OF ENTERPRISES

An enterprise shall be classified as a micro, small or medium enterprise based on the following criteria, namely:

(i) Micro enterprise: where the investment in plant and machinery or equipment does not exceed one crore rupees, and turnover does not exceed five crore rupees.

(ii) Small enterprise: where the investment in plant and machinery or equipment does not exceed ten crore rupees, and turnover does not exceed fifty crore rupees.

(iii) Medium enterprise: where the investment in plant and machinery or equipment does not exceed fifty crore rupees, and turnover does not exceed two hundred and fifty crore rupees. machinery or equipment does not exceed ten crore rupees, and turnover does not exceed fifty crore rupees; and (iii)a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees, and turnover does not exceed two hundred and fifty crore rupees

Step 2: BECOMING A MICRO , SMALL OR MEDIUM ENTERPRISE

Any individual looking to establish a micro, small, or medium enterprise can complete Udyam Registration online via the Udyam Registration portal. This is done based on self-declaration, and there is no requirement to upload any documents, papers, certificates, or proof. Once registered, the enterprise, referred to as "Udyam" in the Udyam Registration portal, will be allotted a permanent identity number known as the "Udyam Registration Number." Following the completion of the registration process, an e-certificate called the "Udyam Registration Certificate" will be issued.

Step 3: Composite Criteria of Investment & Turnover for Classification

(1) An enterprise's classification as micro, small, or medium will be based on a composite criterion of investment and turnover.
(2) If an enterprise exceeds the specified limits for its current category in either investment or turnover, it will move to the next higher category. However, an enterprise will only move to a lower category if it falls below the specified limits in both investment and turnover.
(3) All units with the same Goods and Services Tax Identification Number (GSTIN) listed under the same Permanent Account Number (PAN) will be treated as a single enterprise. The turnover and investment of all such entities will be combined, and only the total values will be considered for determining the enterprise's category as micro, small, or medium.

Step 4: Calculation of Investment in Plant and Machinery or Equipment

The calculation of plant, machinery, or equipment investment will be linked to the Income Tax Return (ITR) of the previous years filed under the Income Tax Act, 1961. If it's a new enterprise and no prior ITR is available, the investment will be based on the self-declaration of the promoter of the enterprise. However, such relaxation shall end after the 31st of March of the financial year in which it files its first ITR. The term "plant, machinery, or equipment" shall have the same meaning as assigned to the plant and machinery in the Income Tax Rules, 1962 framed under the Income Tax Act, 1961, and shall include all tangible assets other than land and building, furniture, and fittings. The purchase (invoice) value of a plant, machinery, or equipment, whether purchased first hand or second hand, shall be taken into account excluding Goods and Services Tax (GST) on a self-disclosure basis if the enterprise is a new one without any ITR. The cost of certain items specified in the Explanation I to sub-section (1) of section 7 of the Act shall be excluded from the calculation of the amount of investment in plant and machinery.

Step 5: CALCULATION OF TURNOVER

1. When determining the turnover of any enterprise, whether it is micro, small, or medium, the exports of goods or services, or both, should be excluded.

2. The turnover and export turnover information for an enterprise should be connected to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN.

3. Enterprises without a PAN will have their turnover figures considered on a self-declaration basis until March 31, 2021. After that date, having a PAN and GSTIN will be mandatory.

Step 6: REGISTRATION PROCESS

1. The registration form can be found on the Udyam Registration portal.
2. There is no fee for filing Udyam Registration.
3. Aadhaar number is required for Udyam Registration.
4. The Aadhaar number should belong to the proprietor in the case of a proprietorship firm, the managing partner in the case of a partnership firm, and the karta in the case of a Hindu Undivided Family (HUF).
5. For a Company, Limited Liability Partnership, Cooperative Society, Society, or Trust, the organization or its authorized signatory should provide its GSTIN, PAN, and Aadhaar number.
6. If an enterprise is duly registered as an Udyam with PAN, any deficiency of information for previous years when it did not have PAN shall be filled up on a self-declaration basis.
7. No enterprise shall file more than one Udyam Registration. However, any number of activities, including manufacturing or service or both, may be specified or added in one Udyam Registration.
8. Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or updation process shall be liable to such penalty as specified under section 27 of the Act.

Step 7: Registration of Existing Enterprises

(1) All existing enterprises registered under EM–Part-II or UAM must re-register on the Udyam Registration portal on or after the 1st day of July, 2020.

(2) All enterprises registered until 30th June, 2020, will be re-classified according to this notification.

(3) The existing enterprises registered before 30th June, 2020, will remain valid only up to the 31st day of March, 2021.

(4) An enterprise registered with any other organization under the Ministry of Micro, Small and Medium Enterprises must register itself under Udyam Registration.

Step 8: Updation of Information and Transition Period in Classification

Enterprises with a Udyam Registration Number are required to update their information on the Udyam Registration portal. This includes providing details of the Income Tax Return (ITR) and Goods and Services Tax (GST) Return for the previous financial year, as well as any additional required information, on a self-declaration basis. Failure to update the relevant information within the specified period on the Udyam Registration portal may lead to the enterprise's status being suspended. The classification of the enterprise will be updated based on the information provided or gathered from government sources, including ITR or GST returns.

If an enterprise moves to a higher category (graduates) or a lower category (reverse-graduates), the enterprise will be notified about the change in status. If there's an increase in investment in plant and machinery or equipment, or turnover, resulting in reclassification, the enterprise will maintain its current status until one year from the end of the registration year. If the enterprise reverse-graduates due to reclassification or actual changes in investment in plant and machinery or equipment, it will remain in its present category until the end of the financial year. The benefit of the changed status will only be effective from 1st April of the following financial year.

Step 9: Facilitation and Grievance Redressal of Enterprises

Enterprises with a Udyam Registration Number must update their information on the Udyam Registration portal. This includes providing details of the Income Tax Return (ITR) and Goods and Services Tax (GST) Return for the previous financial year, as well as any additional required information, on a self-declaration basis. Failure to update the relevant information within the specified period on the Udyam Registration portal may lead to the enterprise's status being suspended. The classification of the enterprise will be updated based on the following:

1. The Champions Control Rooms functioning in various institutions and offices of the Ministry of Micro, Small and Medium Enterprises including the Development Institutes (MSME-DI) shall act as Single Window Systems for facilitating the registration process and further handholding the micro, small and medium enterprises in all possible manner.

2. The District Industries Centres (DICs) will also act as Single Window facilitation Systems in their Districts.

3. Any person who is not able to file the Udyam Registration for any reason, including for lack of Aadhaar number, may approach any of the above Single Window Systems for Udyam Registration purposes with his Aadhaar enrolment identity slip or copy of Aadhaar enrolment request or bank photo pass book or voter identity card or passport or driving licence. The Single Window Systems will facilitate the process, including getting an Aadhaar number and thereafter in the further process of Udyam Registration.

4. In case of any discrepancy or complaint, the General Manager of the District Industries Centre of the concerned District shall undertake an enquiry for verification of the details of Udyam Registration submitted by the enterprise and then forward the matter with necessary remarks to the Director or Commissioner or Industry Secretary concerned of the State Government. After issuing a notice to the enterprise and giving an opportunity to present its case and based on the findings, the concerned authority may amend the details or recommend to the Ministry of Micro, Small or Medium Enterprises, Government of India, for cancellation of the Udyam Registration Certificate.

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MSME Registration

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Related Provision

Nature of assistance

MSEFC of the State after examining the case filed by MSE unit will issue directions to the buyer unit for payment of due amount along with interest as per the provisions under the MSMED Act 2006.

Who Can Apply

Any Micro or small enterprise having valid Udyam Registration can apply.

Salient Features

The buyer is liable to pay compound interest on the amount due at a rate three times the RBI's bank rate if payment is not made to the supplier within 45 days of goods/services acceptance.

Implementation