MSME Services

The new definition of MSME, applicable with effect from 01.07.2020, is based on the composite criteria of turnover limits and limits of investment in plant and machinery or equipment’s. The same limits apply to both manufacturing enterprises and service enterprises.

The following table shows the classification of MSME into micro, small and medium categories based on various combination of situations as regards net investment in plant and machinery or equipment and net turnover:

	Net turnover does not exceed Rs 5 cr.	Net turnover exceeds Rs 5 cr. but not Rs 50 cr.	Net turnover exceeds Rs 50 cr. but not Rs 250 cr.	Net turnover exceeds Rs 250 cr.
Net investment in plant and machinery or equipment does not exceed Rs 1 cr.	Micro	Small	Medium	Out of MSME fold.Large enterprise
Net investment in plant and machinery or equipment exceeds Rs 1cr. But not Rs 10 cr.	Small	Small	Medium	Out of MSME fold. Large enterprise
Net investment in plant and machinery or equipment exceeds Rs 10 cr. but not Rs 50 cr.	Medium	Medium	Medium	Out of MSME fold. Large enterprise
Net investment in plant and machinery or equipment exceeds Rs 50 cr.	Out of MSME fold. Large enterprise	Out of MSME fold. Large enterprise	Out MSME fold. Large enterprise	Out of MSME fold. Large enterprise

Note

1. The investment in plant and machinery or equipment is the written down value as per income tax rules
2. Net turnover means total turnover less export turnover
3. An enterprise shall continue to avail of all non-tax benefits of the category (micro or small or medium) it was in before the re-classification, for the period of 3 years from the date of such upward change.
4. In case of downward movement, the enterprise will continue in its present category till the closure of the financial year and it will be given the benefit of the chuffed status only with effect from 1^st April of the following financial year.
5. All units with same GSTIN shall be collectively treated as one enterprise.
6. Classification criteria is equally applicable for manufacturing and service sector units
7. The benefits of retail and wholesale trade MSME are restricted to priority sector lending on production of Udyam registration

ASPIRE FOUNDATION is competent to support any MSME units, whether they at initial stage or growth stage.