The registration scheme has no statutory basis. Units would normally get  registered to avail some benefits, incentives or support given either by the  Central or State Govt. The regime of incentives offered by the Centre generally  contains the following:
  - Credit prescription (Priority sector lending), differential rates of  interest etc.
 - Excise Exemption Scheme
 - Exemption under Direct Tax  Laws.
 - Statutory support such as reservation and the Interest on Delayed  Payments Act.  
(It is to be noted that the Banking Laws, Excise Law and the Direct Taxes Law  have incorporated the word SSI in their exemption notifications. Though in many  cases they may define it differently. However, generally the registration  certificate issued by the registering authority is seen as proof of being  SSI).
 States/UTs have their own package of facilities and incentives for small  scale. They relate to development of industrial estates, tax subsidies, power  tariff subsidies, capital investment subsidies and other support. Both the  Centre and the State, whether under law or otherwise, target their incentives  and support packages generally to units registered with them.
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