Micro Enterprise
(i) Investment in plant & machinery or equipment up to Rs. 1 crore; AND
(ii) Sales turnover of less than Rs. 5 crores in a financial year
Small Enterprise
(i) Investment in plant & machinery or equipment up to Rs. 5 crore; AND
(ii) Sales turnover up to Rs. 50 crores in a financial year
Medium Enterprise
(i) Investment in plant & machinery or equipment up to Rs. 50 crore; AND
(ii) Sales turnover up to Rs. 250 crores in a financial year
Notes:
- The difference in definition for Manufacturers and Service Providers has been done away with.
- Traders were earlier not considered in the category. As the distinction between manufacturers and service providers has been done away with, we shall find out with further clarifications if the benefits are also extended to traders
- These changes have been notified in the Official Gazette vide SO 1702(E) dated 01.06.2020 so as to change the definition in the Micro Small and Medium Enterprise (MSME) Development Act, 2006
- The Notification shall come into effect from 1st July, 2020
- Benefits of borrowing at lower interest rates and timely receipt of outstanding dues from customers may be extended to all entities falling under this definition
- Please speak with your bankers to avail lower interest rates as available to MSMEs under various schemes
