Change in criteria of unit under MSME Act
Union Ministry of Micro, Small and Medium
Enterprises (M/o MSMEs) has issued Gazette notification to pave way for
implementation of the upward revision in the definition and criteria of MSMEs
in the country.
Effective From
The new definition and criterion will
come into effect from 1st July, 2020.
New Definition of MSME
A revision in MSME definition was announced
in the Atmnirbhar Bharat package on 13th May, 2020.
A new composite formula of
classification for manufacturing and service units has been notified. Now, there
will be no difference between manufacturing and service sectors, and a new criterion of turnover is also added.
Type of Unit
|
Based on Announcement
dated 13th May, 2020
|
Based on Announcement
dated 01.06.2020
|
Micro manufacturing and
services units
|
Rs. 1 Crore of investment and Rs. 5 Crore of turnover.
|
No Change
|
Small manufacturing and
services units
|
Rs. 10 Crore of investment and Rs 50 Crore of turnover.
|
No Change
|
Medium manufacturing
and services units
|
Rs. 20 Crore of investment and Rs. 100 Crore of turnover.
|
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.
|
As a part of new
definition, Exports will not be counted in turnover for any enterprises
whether micro, small or medium which will encourage the MSMEs to export more and
more without fearing to loose the benefits of a MSME unit.
This is expected to exponentially add to exports from the country leading to
more growth and economic activity and creation of jobs.
This is expected to exponentially add to exports from the country leading to
more growth and economic activity and creation of jobs.
Detailed Guidelines and Clarifications as
regards the classification in pursuance of the changed definition are being
issued separately by the MSME Ministry.
Launch of Champions:-
Ministry of MSME has
launched a new handholding mechanism for MSME in the form of CHAMPIONS
which can be accessed at www.champions.gov.in.
Interested Enterprises/People can take benefit of this mechanism and can also put their queries or complaints. The same will be attended to with utmost promptness.
Interested Enterprises/People can take benefit of this mechanism and can also put their queries or complaints. The same will be attended to with utmost promptness.
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