Revised definition of MSME

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TaxClue Team
TaxClue Team
Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building.

The definition of MSME will be revised by raising the Investment limit. An additional criterion of turnover also being introduced. The distinction between the manufacturing and service sector will also be eliminated.

  • Definition of MSMEs will be revised
  • Investment limit will be revised upwards
  • Additional criteria for turnover also being introduced.
  • The distinction between manufacturing and service sector to be eliminated.
  • Necessary amendments to the law will be brought about.

Existing MSME Classification

Criteria: Investment in Plant & Machinery or Equipment
Classification Micro Small Medium
Mfg. Enterprises Investment<Rs. 25 lac Investment<Rs. 5 cr. Investment <Rs. 10 cr.
ServicesEnterprise Investment<Rs. 10 lac Investment< Rs. 2 cr. Investment<Rs. 5 cr.

Revised MSME Classification

  Composite Criteria: Investment And Annual Turnover
Classification Micro Small Medium
Manufacturing & Services Investment< Rs. 1 cr. andTurnover < Rs.5 cr. Investment< Rs. 10 cr.andTurnover < Rs.50 cr. Investment< Rs. 20 cr.andTurnover < Rs.100 cr.

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