“MSME NEW DEFINITION APPLICABLE W.E.F 01ST JULY, 2020 NOTIFIED BY MSMED”
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMED) vide Gazette Id no. CG-DL-E-01062020-219680 and S.O. 1702(E) dated 01st June, 2020 has officially notified criteria for classification of micro, small and medium enterprises,—In exercise of the powers conferred by sub-section (1) read withsub-section (9) of section 7 of the ‘Micro, Small and Medium Enterprises Development Act, 2006, due to which definition criteria has been changed now:
New Definitions – Enterprises
(shall come into effect from 01.07.2020):
| micro enterprises | where the investment in Plant and Machinery or Equipment does notexceed one crore rupees and turnover does not exceed five crore rupees; |
| small enterprises | where the investment in Plant and Machinery or Equipment does not exceedten crore rupees and turnover does not exceed fifty crore rupees; |
| medium enterprises | where the investment in Plant and Machinery or Equipment does notexceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees |
Existing Definition (valid upto 30th June 2020)
| Investment in plant & machinery | ||
| Entities | Manufacturing Sector | Service Sector |
| Micro Enterprises | does not exceed Rs. 25 lakh; | does not exceed Rs. 10 lakh |
| Small Enterprises | more than Rs. 25 lakh but does not exceed Rs. 5 crore; | more than Rs.10 lakh but does not exceed Rs. 2 crore; |
| Medium Enterprises | more than Rs.5 crore but does not exceed Rs.10 crore. | more than Rs. 2 crore but does not exceed Rs. 5 crore. |
Source: http://egazette.nic.in/WriteReadData/2020/219680.pdf
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