Revised definition of MSME

The definition of MSME & how those are categorised new scenario after Lock down :-

The Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act, 2006”) defines an

“Enterprise” as under:

Enterprise means an industrial undertaking or a business concern or any other establishment, by whatever name called, engaged in the manufacture or production of goods, in any manner, pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 or engaged in providing or rendering of any service or services.

Goods in the above definition are defined to mean every kind of movable property other than actionable claims or money.

The Enterprises are then categorised in three broad categories as per Section 7 of the MSMED Act, 2006 viz. Micro, Small & Medium Enterprises, each defined as per their level of investment in plant & machinery or equipment. Different level of investments are prescribed for Service & Manufacturing Enterprises for all the three categories.

The existing and revised MSME classification criteria is tabulated below:

Existing MSME Classification Criteria: Investment in Plant & Machinery or Equipment Classification Classification Micro Small Medium

Manufacturing Enterprises

Investment < Rs. 25 Lacs

Investment < Rs. 5 Crs

Investment < Rs. 10 Crs

Service Enterprises

Investment < Rs. 10 Lacs

Investment < Rs. 2 Crs

Investment < Rs. 5 Crs

Revised MSME Classification Revised Criteria: Investment and Annual Turnover Classification Micro Small Medium

Manufacturing & Service Enterprises

Investment < Rs. 1 Cr                         and                    Turnover < Rs. 5 Crs

Investment < Rs. 10 Crs                         and                      Turnover < Rs. 50 Crs

Investment < Rs. 20 Crs                         and                      Turnover < Rs. 100 Crs