CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

MSME: New forms for classification and recent updates

CS Lalit Rajput 
on 04 June 2020

LinkedIn


While giving the details of the economic relief package the FM gave a new definition of MSMEs. The new definition of MSMEs revised the turnover and investment ceilings of the enterprises. The MSME ministry after making further amendments in the new definition(increasing the turnover and investment limit for medium enterprises) gave an approval to the new definition that will take effect on the 1st of July. The MSME Ministry is working actively and notified the following steps that they are going to take to further strengthen the sector:

Key Highlights:

• Ministry of MSME gears up to implement the New Norms of classification of MSMEs

• The upper ceiling for classification of MSMEs now has been raised

• New definition and criterion notified; &will come into effect from 1st July, 2020

• Exports will not be counted in turnover for any enterprises whether micro, small or medium

• Detailed guidelines along with other clarifications and regulations being issued separately

• Handholding mechanism named "Champions" in place to assist MSMEs

MSME: New forms for classification

The provision of excluding exports in turnover of MSMEs

In the press release that came from the MSME Ministry, the following points were highlighted. The ministry said, "The provision of excluding the exports from counting of turnover will encourage the MSMEs to export more and more without fearing to loose the benefits of a MSME unit." 

1. Ministry vide Gazette Id no. CG-DL-E-01062020-219680and S.O. 1702(E)has officially notified criteria for classification of micro, small and medium enterprise.

2. The new definition and criterion will come into effect from 1st July, 2020.

3. Revision in MSME definition was announced in the Atmannirbhar Bharat package on 13th May, 2020.

4. The Government of India on 01.06.2020 decided for further upward revision of the MSME Definition. For medium Enterprises, now it will be Rs. 50 Crore of investment and Rs. 250 Crore of turnover.

5. It has been decided to further increase the limit for medium Units. This has been done in order to be realistic with time and to establish an objective system of classification and to provide ease of doing business.

6. There will be no difference between manufacturing and service sectors. Also, a new criterion of turnover is added.

7. The provision of excluding the exports from counting of turnover will encourage the MSMEs to export more and more without fearing to loose the benefits of a MSME unit.

8. Champions Portal:

• Ministry of MSME has reiterated that it has put in place a very strong handholding mechanism for MSMEs and new entrepreneurs in the name of Champions (www.champions.gov.in)

• launched by the Prime Minister

• Interested Enterprises/People can take benefit of this mechanism

• can also put their queries or complaints.

New Definitions 'Enterprises' - already notified (shall come into effect from 01.07.2020):

    

Micro enterprises

where the investment in Plant and Machinery or Equipment does no 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

 

• Kindly note that:

 

Detailed Guidelines and Clarifications as regards the classification in pursuance of the changed definition are being issued separately by the MSME Ministry.

Link: Click Here

Disclaimer: IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.


Tags :



Category Corporate Law
Other Articles by -
CS Lalit Rajput 

Report Abuse

LinkedIn



Comments



Popular Articles



CCI Articles

submit article

Stay updated with latest Articles!





GST Live Class    |    x