Traders registration as MSME's - Possible soon?



Quick Summary
There's a possibility that traders may soon be able to register as Micro, Small, and Medium Enterprises (MSMEs). This suggestion, discussed in a meeting with Union Minister Nitin Gadkari, could open up MSME benefits to a large group of traders. Additionally, medium enterprises might soon receive protection against delayed payments, with interest penalties for late payments.

During a meeting of Shri Nitin Gadkari, Union Minister for MSME and Road Transport and Highways with the representatives of Council of Leather Export, FICCI-'NBFC Program' and IMC Chamber of Commerce and Industry on impact of COVID-19 on MSMEs, Some of the questions asked and the suggestions given included

Traders as MSMEs: Registration Soon

Major Points discussed :

• Including traders as MSMEs,

• Inclusion of Medium enterprises in the M/o MSME order dated 02.11.2018 related to timeline of 45 days for payment to MSMEs,

• List of questions asked and the suggestions given included:

    

Suggestion 1

Including traders as MSMEs,

Suggestion 2

Inclusion of Medium enterprises in the M/o MSME order dated 02.11.2018 related to timeline of 45 days for payment to MSMEs,

Suggestion 3

incorporating digital KYCs in case of NBFCs,

Suggestion 4

push required from RBI to change master KYC notification encouraging use of contact list KYC

Suggestion 5

including cotton spinning in the eligibility list of Interest Subvention Scheme,

Suggestion 6

permission for cargo flight in Kanpur,

Suggestion 7

reducing imports and utilizing domestic capacity,

Suggestion 8

need of labour reforms to bring change in MSME sector, etc.

Kindly note that: Shri Gadkari responded to the questions from representatives and requested for sending suggestions and assured all the help from the government:

 

Author views:

1. As per above suggestions, Traders may be allowed to get registered as MSME under the MSMED Act, 2006 via udyogaadhaar Registration.

2. This will help a big group of Traders to get benefits under MSME.

3. Soon Medium Enterprises will also get benefit of protection against Payments (Delayed Payments).

In any case, a payment due to a micro or small or medium enterprise (only suggestion) cannot exceed 45 days from the day of acceptance or the day of deemed acceptance.

And if payment got delayed:

Interest is to be paid at three times the bank rate notified by the RBI.

 

Source of Information: https://www.pib.gov.in/PressReleseDetail.aspx?PRID=1629405

Disclaimer: IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.


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