G.O. (Ms.) No.175, MSME Stamp Duty and Registration Fee Exemption Amendment, 2020
The Commercial Taxes and Registration (J1) Department issued G.O. (Ms.) No.175 on 16 November 2020, amending G.O. (Ms.) No.1 dated 6 January 2009 on stamp duty and registration fee exemptions for micro and small manufacturing enterprises. It replaces the earlier definitions of Micro and Small Enterprises with the monetary limit criteria notified by the Government of India, Ministry of Micro, Small and Medium Enterprises, as amended from time to time.
What the document does
G.O. (Ms.) No.175 of the Commercial Taxes and Registration (J1) Department, dated 16 November 2020, changes how Micro and Small Enterprises are identified for notifications connected with stamp duty and registration fee exemptions. It amends G.O. (Ms.) No.1 of the Commercial Taxes and Registration (J1) Department, dated 6 January 2009.
The earlier government order granted exemptions from stamp duty and registration fees to micro and small manufacturing enterprises and defined the terms "Micro" and "Small" in paragraph 4. G.O. (Ms.) No.175 substitutes that paragraph with a new definition approach.
Key provisions
G.O. (Ms.) No.175 provides that:
- The terms "Micro" and "Small" Enterprises in the notifications attached to G.O. (Ms.) No.1 must be understood using monetary limit criteria notified by the Government of India.
- The relevant central notification is Ministry of Micro, Small and Medium Enterprises Notification No. S.O.2119(E), published in the Gazette of India, Extraordinary, dated 26 June 2020.
- The classification must also follow amendments made to those central monetary limit criteria from time to time.
- Paragraph 4 of G.O. (Ms.) No.1 dated 6 January 2009 is replaced. The source does not reproduce the monetary limits themselves.
Who may be affected
G.O. (Ms.) No.175 may affect micro and small manufacturing enterprises seeking to rely on the stamp duty and registration fee exemptions granted under G.O. (Ms.) No.1. Whether an enterprise falls within the Micro or Small category must now be assessed by reference to the monetary limit criteria in the central notification and its later amendments.
Property buyers, owners and professionals dealing with a transaction involving a micro or small manufacturing enterprise should note that the classification is not fixed by monetary figures printed in G.O. (Ms.) No.175. The applicable Government of India criteria must be checked.
Administrative background
The Inspector General of Registration proposed modifying the earlier definitions after the Ministry of Micro, Small and Medium Enterprises issued its notification dated 26 June 2020. The Government accepted the proposal and issued the amendment by order of the Governor.
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Common questions
Does G.O. (Ms.) No.175 create a new stamp duty exemption for MSMEs?
No new exemption is stated. It amends the definitions used for the stamp duty and registration fee exemptions previously granted to micro and small manufacturing enterprises under G.O. (Ms.) No.1 dated 6 January 2009.
How is a Micro or Small Enterprise classified under this amendment?
The classification follows the monetary limit criteria in Government of India, Ministry of Micro, Small and Medium Enterprises Notification No. S.O.2119(E), dated 26 June 2020, as amended from time to time.
Does G.O. (Ms.) No.175 state the applicable monetary limits?
No. It refers to the monetary limit criteria notified by the Government of India but does not reproduce the figures.
Which earlier government order is amended?
G.O. (Ms.) No.175 amends paragraph 4 of G.O. (Ms.) No.1, Commercial Taxes and Registration (J1) Department, dated 6 January 2009.
