Further revision of MSME definition – New limit for medium enterprise

As we know during the lockdown period various relief was provided to MSME and along with it the definition of MSME was also changed.

In that definition two major change took place: 1. There was now no distinction between manufacturer and service provider and the investment and turnover limits were enhanced.

As we know after enhancement of such limit and introducing benefit for MSME, number of registration under MSME increased to many manifolds.

Now on 01.06.2020 cabinet has again enhanced the limit of Medium enterprise under MSME which has increased the difference between the limit of Small enterprise and medium enterprise.

According to new definition a medium enterprise would be the one with turnover less than 250 crore and investment in plant and machinery less than 50 crore from the earlier limit of 100 crore and 20 crore respectively.

Thus, the New table will look something as below:

Let’s see if this new enhancement can further increase the registration under MSME.

For more details CLICK HERE.

This article is just for information purpose and are personal views of the author. It is always advisable to hire a professional for practical execution or you can mail us. If you need assistance you can ask a question to our expert and get the answer within an hour or post a comment about your views on the post and also subscribe to our newsletter for latest weekly updates.