MSME definitions revised further to include firm with upto Rs. 250 Crore Turnover
1. As per new definitions, a firm with up to Rs. 50 Cr. investments and upto Rs. 250 crore is classified as a medium enterprise.
2. Union cabinet has approved further changes to definitions of MICRO, SMALL & MEDIUM enterprises, a Rs. 20,000 crore funds to provide equity support to stressed entities in the sector, and Equity infusion of Rs. 50,000 crore into MSMEs through a funds of funds.
3. The definition has been revised in the line with industry reviews and it will help a wider section of Companies to avail various sops announced for the sector,
4. As per the new definition, micro units can have upto Rs. 1 crore investment and turnover of up to Rs. 5 crore while businesses with an investment of up to Rs. 10 crore and turnover of upto Rs. 50 crore will be classified as small.
|Revised Definition of MSMEs|
|Sr. No.||Enterprise||Pre Amendment (valid upto 30.06.2020)
Classification was only based on Investment in plant and machinery For manufacturing
|Pre Amendment (Valid upto 30.06.2020)
Classification was only based on Investment in Equipment For service sector
|Post Amendment (w.e.f 01.07.2020) Classification is based on Investment in plant and machinery and Annual
Turnover For both Manufacturing and service sector
|1||Micro||Less than or up to 25 lakh||Less than or up to 10 lakh||Investment upto 1cr. and Turnover upto 5 cr.|
|2||Small||More than 25 lakh but upto 5 cr,||More than 10 lakh but upto 2 cr,||Investment upto 10 cr. and Turnover upto 50 cr.|
|3||Medium||More than 5 cr. but upto 10 cr.||More than 2 cr. but upto 5 cr.||Investment upto 50 cr. and Turnover upto 250 cr.|
|MSME Notification dated 01.06.2020 notifying Revised Classification Criteria for MSME||https://taxguru.in/corporate-law/govt-notifies-revised-criteria-classification-msme.html|
|PIB Press Release dated- on Upward revision of MSME definition||https://taxguru.in/corporate-law/govt-further-revises-ceiling-limits-msme-definition.html|