Company or entity would want to gain MSME registration online can belong to manufacturing or production and also the service industry. MSME registration is an optional one as of the date and the entities should understand that the registering of themselves under MSME will provide their various benefits in case of taxation, availing loans and credits, or such other factors aiding in the development of the business.
The full form of MSME is Micro, Small, and Medium Enterprises and is formed as per Micro, Small, and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). As per this MSMED Act, these are divided into two namely:
In micro enterprises, the investment in plant and machinery does not exceed INR 1 Crore, along with the turnover earned during the year not exceeding INR 5 Crore.
This is the one in which the investment made in plant and machinery is not exceeding INR 10 Crore and the turnover earned during the year is not exceeding INR 50 Crore.
Medium Enterprise is the one in which the investment in plant and machinery is not exceeding INR 50 Crore and the turnover earned during the year is not exceeding INR 250 Crore.
Some of the important features which are held by MSME can be understood as follows:
The MSME registration in India with its production of goods for the domestic as well as the international market is providing the Indian economy a major make over. This is being given by them through providing employment opportunities and enabling the industrialization of small and remote places of the country improving the living standard of the people. There is also a major contribution made by the MSMEs to the production on a domestic basis with low investment, operation flexibility, and low rate of imports.
GST or Goods and Service Tax is a unified system of indirect taxes which allows the consumers to pay one tax on the goods or services or both bought by them. This also keeps at bay the problem which is arising from double taxation as the same was increasing the tax burden of the consumers and also increasing the difficulty of the tax compliance by the suppliers. So, we can say that GST was established by subsuming the following taxes namely:
– Service Tax
– Central Excise Duty
– Additional Excise Duty
– Countervailing and Additional Customs Duty
– VAT or Sales Tax
– Purchase Tax
– Luxury Tax
– Entertainment Tax
– Entry Tax
– Such other taxes.
Other than the following persons specified below, all the MSMEs are required to take registration under GST:
The documents which would be required by MSME for the registration under GST shall be based on the type or constitution of the business. The same has been discussed below:
The documents would include the following:
Hence, we can now conclude that the MSMEs involved in the supply of goods or services or both should take registration under GST if they are earning a turnover over and above the threshold limit specified by the GST Act for providing the exemption.
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