MSME Renewal in India - Overview
MSME Registration Renewal is the process of updating last year’s Income Tax and GST Returns status on the MSME Certificate. The update reclassifies MSMEs according to their recent data on net investment, net turnover, and exports. This data is auto-populated from the integrated Income Tax and GST databases on the Udyam portal. However, their filing status must be self-declared by the applicant.
The requirement for MSME Certificate Renewal was introduced in a Notification by the MSME Ministry dated 26th June, 2020. As per the notification, registered MSMEs are required to annually update their ITR, GSTR, and other details in the MSME Certificate. The update will be based on a self-declaration basis. Failure to do so within the prescribed period (by the 31st of March) may result in the loss of MSME status.
Key Features of MSME Renewal
- Online Process
- Annual Requirement
- No Government Fees
- Minimal Documentation
- Self-Declared Information
MSME Renewal Eligibility
MSME Renewal Process must be opted by all registered MSMEs in India. A notification dated 26th June, 2020 makes it mandatory for them to update their previous year ITR and GSTR details annually. The details are used to reclassify MSMEs in the current financial year as per their updated investment, turnover, and export details. These details are auto-populated from the integrated Income Tax and GST databases on the portal.
What Details Can be Updated on the MSME Portal?
Besides the ITR details, other details of the MSME Certificate can also be updated at the end of the financial year. There are, however, a few exceptions as discussed below. All these details can be updated anytime of the year on a self-declaration basis. The details which can be updated in the MSME Certificate include:
Type of Organisation - GSTR Filing Status for Previous Financial Year
- Registered Mobile Number
- Registered Email Address
- Social Category of Ownership
- Name of the Enterprise (Pre-filled but editable)
- Plant / Unit details (name & address)
- Incorporation Date
- Business Commencement Details
- Bank Details
- Industrial Activity Details
- Employment Details
What Details Cannot be Updated on the MSME Portal?
As mentioned earlier, almost all details of the MSME Certificate can be renewed or updated, except a few. These are the details which once submitted during MSME Registration remain the same throughout its validity, cancellation or voluntary surrender. Here is a complete list of such exceptions:
- PAN of the organisation
- Registered Office of the Organisation (Only District & State)
- Adhar of the Applicant/Entrepreneur
- Name of the Applicant/Entrepreneur
Note:-
- Alteration of PAN is allowed in certain circumstances only.
- The registered office of an MSME Registered Enterprise cannot be changed beyond the limits of the district and state. If that is the case, the current MSME Registration must be cancelled and a fresh MSME Registration must be taken.
- The status of ITR filed for Previous year cannot be updated throughout the year. It can only be updated when enabled by the MSME Ministry, usually at the end of the financial year.
- The details of investment, turnover and exports are auto-populated from the ITR and GSTR information. These need not be updated.
MSME Renewal Date
Registered MSMEs must update their ITR and GSTR details by March 31st each year. Other than these, all other details of the MSME Certificate can be updated anytime of the year. Not updating the details of the MSME Certificate within the prescribed due date may lead to the cancellation of MSME Certificate.
Checklist & Documents
To obtain MSME Renewal, you must meet certain eligibility conditions and documentation requirements. In the table given below, we have drafted two checklists. The first one mentions all the MSME Renewal Eligibility conditions and the second one mentions the entire MSME renewal documents list. Ensuring that both these checklists are met will lay down the foundation of a successful MSME Renewal Process in India.
MSME Registration CertificateGSTIN, required as per CGST ActITR Filed in the previous yearPAN of EntityUdyam Registration NumberRegistered Mobile NumberMSME Renewal Benefits
Understanding MSME Renewal benefits will give you a clear insight into how crucial this process is for registered MSMEs. Registered MSMEs must renew their MSME Certificates annually, providing their previous year’s ITR details and GSTR filing status. This ensures the Government is aware of their MSME classification and current financial situation. Here are the 6 most important benefits of the MSME Renewal process in India!
Accurate Classification
MSME Certificate Renewal ensures that your MSME is correctly categorised based on current financial data.
Eligible for Government Schemes
MSME Renewal ensures that your business remains eligible for various government initiatives and subsidies targeted for MSMEs.
Improved Credibility
MSME Registration Certificate Renewal enhances your business's credibility with lenders, customers, and partners.
Seamless Compliance
Staying current with ITR and GSTR details helps in effortless compliance with tax and regulatory requirements, reducing the risk of penalties.
Competitive Advantage
Accurate data updated from MSME Registration Renewal showcases your business's growth and performance through the years.
Timely Payment
MSME Renewal Online enables timely payment to registered MSMEs from buyers after the sale of Goods and Services.
The Branch Office can carry out only permitted activities.
At Setindiabiz, we legally assist small businesses and MSMEs acquire and renew their Udyam Registration Certificates. Our services include determining the eligibility of your enterprise for MSME renewal. We also provide documentation assistance, and submit the complete application for MSME Certificate Renewal Online. Our team tracks the status of your application and provides you with the updated MSME Certificate in no time!
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