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:
CAclubindia
