Q1: What is the penalty for not filing MSME Annual Return?A: Non-filing can lead to disqualification from government schemes and financial penalties up to ₹1 lakh.

Q2: Do all MSMEs need to register under GST?A: MSMEs with turnover above ₹40 lakhs (₹20 lakhs for services) must register for GST.

Q3: How often should MSMEs renew their registration?A: MSME/Udyam registration is lifetime valid but must be updated annually.

Q4: Can an MSME avail of tax benefits?A: Yes, MSMEs can avail of tax benefits under Section 80JJAA, presumptive taxation schemes, and other government incentives.

Q5: Is it mandatory for MSMEs to maintain audited financial statements?A: No, only MSMEs exceeding the turnover threshold under the Companies Act or Income Tax Act need audited financial statements.Q6: Can an MSME change its business category after registration?A: Yes, an MSME can update its registration details, including business category, through the Udyam portal.