MSME LIMIT BY TURNOVER OR INVESTMENT

[satbir singhwahi]

PLS GUIDE WHETHER NOW LIMIT FOR MSME IS BY INVESTMENT OR TURNOVER

AI Summary

New MSME Classification: Turnover-Based Criteria Replaces Investment-Based System, Highlighting Local Discrepancies in Implementation. The discussion revolves around the classification criteria for Micro, Small, and Medium Enterprises (MSMEs) in India, which was changed from investment-based to turnover-based by the Union Cabinet in February 2018. The original classification under the MSMED Act, 2006, was based on investment in plant and machinery for manufacturing and equipment for service enterprises. The amendment redefined MSMEs by annual turnover, aiming to simplify business operations and align with GST norms. A participant mentions issues with a state pollution board still requiring investment-based classification, despite the amendment. The discussion highlights discrepancies in the adoption of new criteria by local authorities.