Govt notifies revised criteria for classification of classification of micro, small and medium enterprises (MSME) with effect from 01.07.2020.
Also Read PIB Press Release- Govt further revises ceiling limits for MSME Definition
New Definitions of MSME with effect from 01.07.2020)
| Micro enterprises | where the investment in Plant and Machinery or Equipment does not exceed one crore rupees and turnover does not exceed five crore rupees; |
| Small enterprises | where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; |
| Medium enterprises | where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees |
Existing Definition of MSME valid upto 30th June 2020
Text of Notification of Government Notifying revised criteria for classification of MSME
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES NOTIFICATION
New Delhi, the 1st June, 2020
S.O. 1702(E).—In exercise of the powers conferred by sub-section (1) read with sub-section (9) of section 7 of the ‘Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) and in supersession of the notification of the Government of India, Ministry of Small Scale Industries, dated the 29th September, 2006, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section(ii), vide S.O. 1642(E), dated the 30th September 2006 except as respects things done or omitted to be done before such supersession, the Central Government, hereby notifies the following criteria for classification of micro, small and medium enterprises, namely:—
(i) a micro enterprise, where the investment in Plant and Machinery or Equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
(ii) a small enterprise, where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees;
(iii) a medium enterprise, where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
This notification shall come into effect from 01.07.2020.
[F. No. 2/1(5)/2019-P&G/Policy (Pt.-IV)]
A. K. SHARMA, Secy.
Source- http://egazette.nic.in/WriteReadData/2020/219680.pdf
Author Bio
New definition silent about separate reduced criteria for service units. May we presume that criteria is common for manufacturing and service units ?
Please clarify- investment in Plant & Machinery to be calculated as on FY 2018-19 IT Return and Turnover to be calculated for the FY 2019-20(GST return) or it should be based on previous year 2018-19(GST/Income Tax Return)
Whether real estate will cover under new MSME classification
is there any change in calculation of investment of P&M in accordance to revised Threshold limit Jul 20
Good Afternoon.
Is there any revision in notification to ealier -S.O. 1722(E) – In exercise of the powers conferred by sub-section (1) of 2006) MSME act. Threshold limit has been changed but what about calculation of investment in Plant & Machinery
Thank you at the outset for detailed article. This means to say that the MSME benefit is available to manufacturing and service sector only and not to the Non Manufacturing business, trading community by change of definition. ~ Your valuable opinion Sir. ~ Thanks in advance.
Respected Sir,
It is requested that please clarify what will be the impact of revised definition on already registered UNITS ?
Regards
Msme loan
Whether a unit having an investment of say 60 crores and a turnover of say 200 Cr is classified as MSME or a LSI. Similarly a unit having an investment of say 30 Cr but turnover of say 260 Cr, is considered as MSME or a LSI. Please clarify. Third, the turnover of which year is the base for this classification. Appreciate, if you could revert
Dear Readers,
At present only definition criteria has been notified officially by the Ministry. For more authenticate information wait for order copies, all information posted in newspapars, are only announcements at present.
Sir, I believe the Minister had mentioned that Export turnover will not be taken into account while computing the limits for MSME. The Newspapers had also confirmed this. However the current notification is silent on the Export Turnover. Please advise
Thanks for your valuable information. I really like your post. Please update your posts regularly because i found interesting.