Micro small medium enterprise
This query is : Resolved
19 February 2025
hiii!!! my turnover is greater than 50cr last year and plant value is 1cr, classified as medium. but this year my turnover is 45cr. can i reclassify myself to small??
can i go from medium to small??
can i go from medium to small??
12 August 2025
Under the current MSME criteria (as per latest rules):
Classification depends on BOTH turnover and investment in plant & machinery (for manufacturing) or equipment (for services).
For medium enterprise, limits are:
Investment in plant & machinery ≤ ₹50 crores
Turnover ≤ ₹250 crores
For small enterprise, limits are:
Investment ≤ ₹10 crores
Turnover ≤ ₹50 crores
Your case:
Last year: Turnover > ₹50 crore, Plant value ₹1 crore → classified as medium (likely due to turnover crossing small limit)
This year: Turnover ₹45 crore (below ₹50 crore), Plant value ₹1 crore
Can you go back from medium to small?
Yes, MSME classification is assessed annually based on latest financials.
Since your turnover is now below ₹50 crore and investment ₹1 crore, you can classify yourself as small enterprise this year.
Important points:
Classification is dynamic and changes based on the latest turnover and investment figures.
You can downgrade or upgrade depending on actual numbers.
Update your MSME registration details accordingly (if registered).
Classification depends on BOTH turnover and investment in plant & machinery (for manufacturing) or equipment (for services).
For medium enterprise, limits are:
Investment in plant & machinery ≤ ₹50 crores
Turnover ≤ ₹250 crores
For small enterprise, limits are:
Investment ≤ ₹10 crores
Turnover ≤ ₹50 crores
Your case:
Last year: Turnover > ₹50 crore, Plant value ₹1 crore → classified as medium (likely due to turnover crossing small limit)
This year: Turnover ₹45 crore (below ₹50 crore), Plant value ₹1 crore
Can you go back from medium to small?
Yes, MSME classification is assessed annually based on latest financials.
Since your turnover is now below ₹50 crore and investment ₹1 crore, you can classify yourself as small enterprise this year.
Important points:
Classification is dynamic and changes based on the latest turnover and investment figures.
You can downgrade or upgrade depending on actual numbers.
Update your MSME registration details accordingly (if registered).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN REDEVELOPED FLAT
- CLOSING STOCK QUERY
- Requirement under FEMA &RBI
- Gst on travel by air for business purposes
- GST ISD Query on various AMCs
- Taxation on Old jewellery sold
- ITR 44AD SECTION
- Query regarding reporting of exempt foreign remuneration in ITR
- PF wage ceiling
- Error in uploading Form 10BD
- REGARDING ITR FILING QUESTION
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
