Jasmeen Marwah
Quick Summary
REVISION IN MSMEs (Micro, Small and Medium Enterprises)
Government has changed following things in relation to MSME:
- Definition of MSMEs
- Investment Criteria
- Turnover Criteria
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Existing |
Current |
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Manufacturing Enterprises: -
- For Micro:- Investment in plant & machinery < INR 25 Lakh, but now investment < INR 1 cr. and Turnover < INR 5 cr.
- For Small:- Investment in plant & machinery > INR 25 Lakh< INR 5 cr., but now investment > INR 1 cr. < INR 10 cr. and Turnover > INR 5cr.< INR 50 cr.
- For Medium:- Investment in plant & machinery > INR 5 cr.< INR 10 cr., but now investment > INR 10 cr.< INR 20 cr. and Turnover > INR 50 cr.< INR 100 cr.
Servicing Enterprises: -
- For Micro:- Investment in plant & machinery < INR 10 Lakh, but now investment < INR 1 cr. and Turnover < INR 5 cr.
- For Small:- Investment in plant & machinery > INR 10 Lakh< INR 2 cr., but now investment > INR 1 cr. < INR 10 cr. and Turnover > INR 5 cr.< INR 50 cr.
- For Medium:- Investment in plant & machinery > INR 2 cr.< INR 5 cr., but now investment > INR 10 cr.< INR 20 cr. and Turnover > INR 50 cr.< INR 100 cr.
Here "and" is "or"
FAQ :
The main changes involve the criteria for defining MSMEs. Previously, only investment in plant and machinery was considered. Now, overall investment and a composite turnover criterion are used. Different criteria now exist for manufacturing and service sectors.
For a micro enterprise, the new investment criterion is less than INR 1 crore, and the turnover criterion is less than INR 5 crore. This applies to both manufacturing and service sectors.
For a small enterprise, the new investment criterion is between INR 1 crore and INR 10 crore, and the turnover criterion is between INR 5 crore and INR 50 crore. This applies to both manufacturing and service sectors.
For a medium enterprise, the new investment criterion is between INR 10 crore and INR 20 crore, and the turnover criterion is between INR 50 crore and INR 100 crore. This applies to both manufacturing and service sectors.
Yes, the new MSME definition introduces a composite turnover criterion for all categories of enterprises (micro, small, and medium).
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