Jasmeen Marwah
Quick Summary
REVISION IN MSMEs (Micro, Small and Medium Enterprises)
Government has revised the following things in relation to MSME:
|
Existing |
Current (now revised) |
Revised |
|
For MSME, an enterprise has to consider investment in Plant & Machinery or Equipment |
Now Enterprise has to consider overall investment done by them |
Specified investment in Plant & Machinery or Equipment |
|
No Turnover Criteria |
New Turnover Criteria Introduced |
Export not to consider in Turnover |
|
Different criteria for manufacturing and service sector |
Composite Criteria for both sectors |
Composite Criteria-investment and turnover limit for medium enterprise increased |
Manufacturing Enterprises:
- For Micro: - Investment in plant & machinery or equipment< INR 25 Lakh, but now Investment in plant & machinery or equipment < INR 1 cr. and Turnover < INR 5 cr.
- For Small: - Investment in plant & machinery or equipment > INR 25 Lakh< INR 5 cr., but now Investment in plant & machinery or equipment > INR 1 cr. < INR 10 cr. and Turnover > INR 5cr.< INR 50 cr.
- For Medium: - Investment in plant & machinery or equipment > INR 5 cr.< INR 10 cr., but now Investment in plant & machinery or equipment > INR 10 cr.< INR 50 cr. and Turnover > INR 50 cr.< INR 250 cr.
Servicing Enterprises:
- For Micro: - Investment in plant & machinery or equipment < INR 10 Lakh, but now Investment in plant & machinery or equipment < INR 1 cr. and Turnover < INR 5 cr.
- For Small: - Investment in plant & machinery or equipment > INR 10 Lakh< INR 2 cr., but now Investment in plant & machinery or equipment > INR 1 cr. < INR 10 cr. and Turnover > INR 5 cr.< INR 50 cr.
- For Medium: - Investment in plant & machinery or equipment > INR 2 cr.< INR 5 cr., but now Investment in plant & machinery or equipment > INR 10 cr.< INR 50 cr. and Turnover > INR 50 cr.< INR 250 cr.
The above change shall come into effect from 1st July, 2020
Government has launched CHAMPION portal. It has following objectives: -
- To help the MSMEs in this difficult situation in terms of finance, raw materials, labour, permissions, etc.
- To help the MSMEs capture new opportunities including manufacturing of medical items & accessories.
- To identify the sparks, i.e., the bright MSMEs who can withstand at present and become national and international champions.
Link:
FAQ :
The revised MSME definition now considers both overall investment and turnover, whereas previously it focused only on investment in plant and machinery or equipment. Export earnings are also no longer counted towards turnover.
The revised MSME definition came into effect from 1st July 2020.
For a Micro enterprise, the investment limit has increased to under INR 1 crore and a turnover of under INR 5 crore. Previously, the investment limit was under INR 25 lakh for manufacturing and under INR 10 lakh for service enterprises.
A Medium enterprise now has an investment limit between INR 10 crore and INR 50 crore, with a turnover between INR 50 crore and INR 250 crore.
The CHAMPION portal was launched to assist MSMEs with finance, raw materials, labour, and permissions, and to help them capture new opportunities and identify strong businesses.
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