Nitin Gadkari, the Minister of Micro, Small and Medium Enterprises (MSME) and Road Transport and Highways, announced amended MSMEs guidelines on 3 rd July,2021 , including the inclusion of retail and wholesale trades as MSMEs. The updated norms, according to Gadkari, will help 2.5 million retail and wholesale businesses.
He explained that retail and wholesale trade had previously been excluded from MSME coverage, but that under the amended criteria, retail and wholesale commerce will now be eligible for priority sector funding under the Reserve Bank of India’s (RBI) guidelines. “We are determined to bolstering MSME and transforming them into engines of economic growth,” he added.
Manufacturing and service firms are included in the existing definition of MSMEs, however retail and wholesale commerce are not.
The main objective of this amendment is to allow the traders to take advantage of a number of additional government programmes for MSMEs, as well as the necessary funds from banks and lending institutions. Retail and wholesale trades will now be able to register on the Udyam Registration Portal to avail various benefits.
Benefits of Registration
The advantages of MSME registration, whether online or offline, are numerous:-
- Businesses who have completed the registration process may be eligible for a loan with a lower interest rate.
- The MSME Act allows you to take advantage of tax incentives.
- The MAT, or minimal alternate tax, can be extended to 15 years instead of the usual ten.
- MSME-registered businesses are given priority when applying for government-issued licences and certificates.
- You can get discounts and refunds on the costs of patenting and setting up your business.
- Many government contracts are exclusively awarded to MSME-registered businesses.
MSME certificates serve as proof of MSME status. MSME certificates can be downloaded both online and offline throughout the registration procedure. The fees will be charged in accordance with this. Each business will be given a unique MSME certificate based on its industry and sector.