Udyam Registration is the authorized procedure through which a Micro, Small, and Medium Enterprise gets recognized by the Government of India. Such registration may provide them with numerous benefits ranging from subsidies, priority lending, and easy access to tenders. Most small businesses have one common doubt: whether they need a GST number to apply for it.
Therefore, the good news is that not all businesses must have a GST number for Udyam Registration; if your business is exempt under the GST law or if it falls below the prescribed limits of turnover, you can apply without a GSTIN.
Is GST Mandatory for Udyam Registration?
No, it is not compulsory for all businesses to have a GST. As per the guidelines of the Ministry of MSME, only those businesses that are legally bound to obtain GST registration are required to provide the GST number during Udyam registration. Others can be registered without the same.
Who can Register Without GST?
• You can apply for Udyam Registration without a GST number if:
• Your annual turnover is less than the threshold value for paying GST, which is ₹40 lakh for goods and ₹20 lakh for services.
• Your business deals in exempted goods or services
• You are a local operator only and do not provide goods or services across state borders
• You do not sell through e-commerce platforms which require GST registration
However, if you fall under any mandatory GST registration rule, the Udyam portal at the time of registration will ask for a GST number.
Documents Required for Registration Without GST
You can complete the registration without uploading physical documents, but the following details are required:
• Aadhaar number of the Proprietor or Authorised Signatory
• PAN number of the individual or entity
• Name and type of enterprise
Nature of the business and number of employees
• Investment in plant and machinery or equipment
• Bank account details
• Mobile number associated with Aadhaar
These details are verified online through government databases.
How to Register Without GST?
Eligible enterprises can directly register themselves on the Udyam portal, where an option for new entrepreneurs is provided. You can proceed by merely filling in the details about Aadhaar and PAN without having to fill up the GST field.
Otherwise, for professional assistance, you can apply through service providers you can trust, who handle the whole process on your behalf. They ensure accuracy in your application and that it gets approved in the shortest time possible.
Benefits of Registering Without GST Number
Even without GST, Udyam Registration has numerous powerful advantages:
• Recognition as an officially registered MSME
• More access to collateral-free loans at lower interest rates
Eligibility to all different Central and State Government schemes.
• Easier access to business licenses and permits
• Preference in government procurement and tender processes
• Protection under the delayed payment clause of MSMED Act
• Concessions on electricity bills and patent fees
• Access to Trade Fairs, Support for MSME Marketing
• Support under public procurement policies
• Eligibility for the credit guarantee scheme.
FAQ’s About GST Number
1. Can I apply for Udyam Registration without a GST number? Yes, you can apply without a GST number if your business is exempt or below the registration limit under the GST laws.
2. Whether I will get MSME benefits without GST Yes, all eligible enterprises get the benefits under MSME even if they are not registered under GST.
3. What if I get registered now and then obtain a GST number later You can log in and update your GST number in your Udyam profile at any time in the future.
4. How long does it take to get the Udyam certificate? It usually takes one to three working days to have the certificate issued after successful registration.
5. Is Aadhaar necessary for Udyam Registration? Yes, the Aadhaar authentication is necessary for all applicants including proprietors, partners, or directors.
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