MSME-Micro, Small and Medium Enterprises.
MSME- Micro, Small and Medium Enterprises. MSME industries are the backbone of the economy.The MSME sector contributes to 45% of India’s Total Industrial Employment, 50% of India’s Total Exports and 95% of all industrial units of the country and more than 6000 types of products are manufactured in these industries (As per msme.gov.in). When these industries grow, the economy of the country grows as a whole and flourishes. The existing MSME classification was based on the criteria of investment in plant and machinery or equipment.
Existing MSME Classification
Sector | Criteria | Micro | Small | Medium |
---|---|---|---|---|
Manufacturing | Investment | < Rs.25 lakh | < Rs.5 crore | < Rs.10 crore |
Services | Investment | < Rs.10 lakh | < Rs.2 crore | < Rs.5 crore |
Existing MSME Classification | |||||||
Sector | Criteria | Micro | Small | Medium | |||
Manufacturing | Investment | < Rs.25 lakh | < Rs.5 crore | < Rs.10 crore | |||
Services | Investment | < Rs.10 lakh | < Rs.2 crore | < Rs.5 crore | |||
Revised MSME Classification | |||||||
Criteria | Micro | Small | Medium* | ||||
Investment & Annual Turnover | < Rs.1 crore & < Rs.5 crore | < Rs.10 crore & < Rs.50 crore | < Rs.50 crore & < Rs.250 crore |
Required Register for following category Businesses
Aggregate turnover
Any service provides a value of more than Rs. 20 Lakhs in a year is required to obtain GST registration. In the special category states, this limit is Rs. 10 lakhs. Any organization engaged in the exclusive supply of goods whose aggregate turnover crosses Rs.40 lakhs is required to obtain GST registration.
Voluntary registration
Any business can obtain GST registration based upon their requirement at any time. voluntarily.