Micro small medium enterprise

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This query is : Resolved

Urvashi@0311 (Querist)

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??

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

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).

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