For any business to be legally recognized as a supplier of goods and services, registration in the tax system is the most fundamental requirement. Without registration, you can neither collect tax from your customers, nor claim any input tax credit of the tax paid by your enterprise. 

As the name suggests, GST Registration is the process by which you can register your enterprise under India’s Goods and Service Tax (GST) system. Once the registration is complete, a 15-digit Goods and Service Tax Identification Number (GSTIN) is generated by the Central Government to help determine whether your business is liable to pay GST. 

Do you need a GST registration from Udyam MSME Registration Certificate? 

No, the Udyam MSME Registration portal states that it is not mandatory to have a GST number for registering your MSME. Only Aadhar number will be enough for MSME Udyam Registration, wherein PAN & GST linked details on investment and turnover will be fetched from the database of the Government. Meanwhile, the GST rules further state that businesses with turnover of above Rs. 40 lakhs should mandatorily register themselves as normal taxable entity. Conducting business operations without registering for GST is a criminal offence and will attract heavy penalties. Therefore, it is suggested to have a GST registration to operate the enterprise. 

Apply for a GST Registration online: Step-by-step guide 

GST registration process is fully online, free of cost and usually takes about a week to complete. Before you begin the registration, it is important to have all the necessary documents to make the process faster and simpler. Here is a table with the list of documents that sole business owners, LLPs or private companies will need while GST registration: 

Follow these 5 steps for GST Registration 

Step 1: Log on to reg.gst.gov.in/registration and fill all the basic information including the email address and the mobile number on which you will receive an OTP. Once filled, click on ‘Proceed’. 

Step 2: Verify your mobile number by submitting the OTP. A ‘Temporary Reference Number (TRN)’ will now be generated, which you must keep handy for further steps. 

Step 3: Log in via your TRN number to access your application and fill the part B of the GST registration. This part seeks information about the principal place of business, goods and services of the business, authorized representatives and signatories, bank accounts and more. You will get the option to upload the documents along the way. 

Step 4: Once you have filled the form, you will land at the verification page where you get to check that all the information provided by you in error-free.   

Step 5: Digitally sign the application as instructed in the portal to generate the ARN number. The ARN, or the Application Reference Number receipt will be sent to e-mail and mobile phone number you had entered earlier.  

The application is complete. You can track the status of your application using the ARN number. As mentioned earlier, it may take up to 7 days for the process to be completed after you’ve submitted your application. 

MSME Udyam Registration  

Similar to GST Registration, the MSME registration is also a free-of-cost, fully online, paperless process and is based on self-declaration. More than 1.25 small-scale businesses have registered themselves under Udyam. The MSME Udyam registration is a gateway to tax benefits, attractive MSME loans, subsidies and much more. Click here to see the benefits of MSME Udyam registration in India. 

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision.  IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.  

The Ministry of MSME has set up several departments to look after specific needs of upcoming and growing dynamic business needs of the micro, small & medium enterprises. The NSIC, or the National Small Industries Corporation Limited of the MSME Ministry caters to small-scale business in raw material procurement, product marketing, credit rating improvement, technology upgradation and adoption of modern management practices.  

Here we will understand about NSIC’s role in growth of MSMEs, its application & certification procedure and salient features.   

What is NSIC? It’s benefits and application procedure explained 

The National Small Industries Corporation is a public sector enterprise under Ministry of Micro, Small and Medium Enterprises (MSME), and was established in 1955 to accelerate the growth of micro and small enterprises across India on commercial basis. NSIC undertakes implementation of specific MSME Ministry’s policies, programmes and schemes for providing infrastructure and support services to enterprises. 

Benefits under NSIC 

Before we proceed to the procedure of registering your enterprise under NSIC, let’s take a look at the benefits the NSIC registered MSMEs enjoy. 

1. Tech upgradation support: The corporation assists small enterprises in development and implementation of a technology strategy that best suits their businesses’ needs. On the execution level, NSIC also helps in smooth integration of new technology to their operational environment, customers and suppliers. 

2. Upskilling of manpower: The NSIC has its technology service centres – dedicated to skill based training of manpower, spread in various locations across the country. Manpower and MSME employee upskilling via seminars, classes and exposure are carried out in the fields of machine tools, CNC, solar energy, robotics, AI & ML etc.  

3. Marketing support: Assistance in applying tender, increasing digital presence of a business, displaying competencies of MSMEs in exhibitions and organising buyer-seller meets are few of the marketing support services that NSIC offers to registered enterprises. It also disseminates information on market intelligence for enterprises by maintaining a database of domestic and international market studies. 

4. Credit facilitation: NSIC also facilitates credit requirements of small enterprises, especially in procurement of raw materials (both indigenous and imported) via its Raw Material Assistance Scheme. 

5. Setting up of new MSMEs: New small enterprises can take advantage of by integrated services provided by the corporation in the areas of training and skill development, selecting small projects, preparing project profiles/reports, identifying sources of plant, machinery & equipment, financing, and much more.  

NSIC implements its various programmes and projects via its 39 sub-branchs, 9 zonal offices, 5 technical services centres, and 2 software technology parks spread throughout across the country. 

Application procedure 

NSIC follows a fully online ‘Single Point Registration Scheme’ which can be done at www.nsicspronline.com. You will need your Udyam Registration Number, PAN, Premise ownership proof (like rent deed) and latest electricity bill among other required documents. You will have to fill a 7-step form and upload all the documents, following which a third party agency will authenticate the information you have provided. Once cleared, you will receive a Single Point Registration certificate on successful completion.    

How is NSIC different from MSME? 

On the basis of scope: NSIC is a corporation that falls under the Ministry of MSME – hence the scope of MSME is wider. While Ministry of MSME caters to numerous businesses needs of all small-scale enterprises, NSIC is majorly focused on commercial growth of micro and small enterprises in the country. 

On the basis of support functions: Both MSME Ministry and NSIC help in acceleration and expansion of businesses. Schemes and support functions of NSIC specialise in marketing and technology needs.  

On the basis of registration: NSIC registration process is slightly more tedious than MSME Udhyam registration process and requires more documents. Unlike Udyam, NSIC charges a nominal registration fee based on the turnover. Udyam registration is mandatory to get your business registered by NSIC, but the opposite is not true. 

On the basis of certification: Udyam MSME certificate covers all the same benefits offered by NSIC certificate. Additionally, by having an Udyam certificate, you may be eligible for tax benefits, subsidies and exemption in processing fee of various other services related to your business.  

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision.  IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.