Revisions to investment, turnover criteria for MSMEs notified
The significant revisions to the turnover and investment criteria for classifying MSMEs have been notified, which will come into effect from April 1, the government has said.
According to the notification, Micro, Small, and Medium Enterprises (MSMEs) with investments up to Rs 2.5 crore will now be classified as micro-enterprises, up from the previous threshold of Rs 1 crore.
Revising the turnover limit from Rs 5 crore to Rs 10 crore, the units with investments up to Rs 25 crore will be classified as small enterprises, from the earlier Rs 10 crore.
“The turnover limit for such enterprises has been doubled from Rs 50 crore to Rs 100 crore,” it said, while notifying that the MSMEs with investments up to Rs 125 crore will now be classified as medium enterprises, from the earlier limit of Rs 50 crore.
Besides, the turnover limit has been doubled to Rs 500 crore for medium enterprises.
Pertinently, Finance Minister Nirmala Sitharaman had, in her budget speech, announced new classification criteria for MSMEs, with investment and turnover limits for the classifications proposed to be increased to 2.5 times and two times, respectively.
