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.

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