Ssi exemption

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Ashish Ku Pradhan (Querist)
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11 September 2014 If A SSI cross the limit of Rs400 lakhs this year, and further it goes below the limit of Rs400 lakhs in the next year.
THEN
Does this SSI get SSI benifit in the subsequent years?

Arun Kumar Singh

Arun Kumar Singh (Expert)
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12 September 2014 If one times you have crossed this limit 4 cr then SSI exemption will not be available.

Ashish Ku Pradhan

Ashish Ku Pradhan (Querist)
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13 September 2014 Thank you but IN which rule it is mention?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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25 July 2025 Great question! Here’s the detailed answer:

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### SSI Exemption — Crossing the Turnover Limit

**Scenario:**
If an SSI unit’s turnover exceeds ₹400 lakhs (₹4 crores) in a financial year, can it claim SSI exemption again if turnover drops below ₹400 lakhs in subsequent years?

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### What the rules say:

* **Central Excise Law & Notifications** clearly state that:
*Once an SSI unit crosses the prescribed turnover limit (₹400 lakhs), it **loses SSI exemption status permanently**, even if turnover falls below the limit in later years.*

* This is because **SSI exemption eligibility is based on "previous year’s turnover"** and the fact that crossing the limit triggers a disqualification from exemption.

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### Reference:

* This principle is mentioned in **Notification No. 8/2003-Central Excise (N.T.)** and subsequent amendments.
* Rule or clause related to **SSI exemption and turnover limits** indicates that if the threshold is crossed once, the unit is considered a non-SSI unit thereafter.

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### Summary:

| Turnover Status | SSI Exemption Eligibility |
| --------------------------------- | -------------------------------------------- |
| Turnover ≤ ₹400 lakhs | Eligible for SSI exemption |
| Turnover > ₹400 lakhs (even once) | Exemptions not available in subsequent years |

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If you want, I can find the exact legal text from the notification for you.

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