{"id":37939,"date":"2020-09-23T12:30:07","date_gmt":"2020-09-23T07:00:07","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=37939"},"modified":"2020-09-23T12:56:33","modified_gmt":"2020-09-23T07:26:33","slug":"amendment-in-selection-criteria-for-msme","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/amendment-in-selection-criteria-for-msme\/","title":{"rendered":"Amendment in Selection Criteria for MSME \u2013 INDULGENCE OF MORE MEDIUM SIZED ENTERPRISES"},"content":{"rendered":"<h2 class=\"wp-block-heading\">Widening the ambit of Classifying the MSME Enterprises<\/h2>\n\n\n\n<p class=\"has-drop-cap\">On the 26<sup>th<\/sup>&nbsp;June 2020 Government of India (GOI) considering the initiative drive under the Atmanirbhar Bharat Abhiyaan relief package, the GOI came up with the <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Amendment&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;An &amp;quot;amendment&amp;quot; refers to the formal change or correction of a legal document, often involving additions, variations, or deletions to address irregularities or clarify points in an agreement.(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/amendment\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>amendment<\/a> in the Existing&nbsp; Structure for <a href=\"https:\/\/enterslice.com\/msme-registration\">MSME Classification<\/a>.<\/p>\n\n\n\n<p>With the aim of the Government is to take in a large number of enterprises under the benefits to be enjoyed by the MSMEs.<\/p>\n\n\n\n<p>Turnover and Investment parameters were revised and changed to larger values in order to include more of the Medium Size enterprise to nurture the benefits so associated with various scheme in MSME ecosystem.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Inclination towards Atmanirbhar Bharat Abhiyan:<\/h2>\n\n\n\n<p>With the combined efforts of the Government of India while uplifting the Economy in this Pandemic Scenario. The Need for the revision in the Existing definition of the MSME on the <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a> of the Turnover and Investment criteria was considered to be amended.<\/p>\n\n\n\n<p>Furthermore, Key Announcements were made in connection to it to same as:<\/p>\n\n\n\n<ul><li>INR 3 Lakh Crores as collateral-free automated loans for MSMEs and Business operation particularly mid-sized based.<\/li><li>Now the borrowers with up to INR 25 Crore being Outstanding and INR 100 Crore Turnover being eligible now.<\/li><li>The tenor of Loan would Loans to have 4 year tenor with Principal repayment with 12 months moratorium for Loans.<\/li><li>Interest rate be capped with ranging from 9.25% p.a to 9.75% p.a if taken from Banks<\/li><li>Interest rate capped to 14% p.a from <a href=\"https:\/\/enterslice.com\/nbfc-registration\"><a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;NBFC&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Non-Banking Financial Companies (NBFC) operate similarly to banks but do not possess the legal status of a bank. Registered under the Companies Act 2013 and governed by the RBI Act&amp;#039;s section(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/nbfc\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>NBFC<\/a><\/a>s.<\/li><li>100% credit guarantee cover to be provided for banks and NBFCs on the principal amount to curb NPAs.<\/li><li>The Scheme could be availed till 31st Oct 2020 subject to the eligibility.<\/li><\/ul>\n\n\n\n<p>Accordingly looking way ahead in this regard the Scope of the MSME have increased to many folds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">&nbsp;Amendments in the Existing Structure:<\/h2>\n\n\n\n<p>Considering the new criteria for classifying the MSME sector on the basis of the Investment and turnover, the Scope of the Classification has been widened to cover the chunk of Enterprises under the Scheme.&nbsp; Accordingly, we can have quick look over the Criteria as:<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong>For Plant &amp; Machinery<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Type of Enterprises<\/strong><\/td><td><strong>Investment Size (INR)<\/strong><\/td><td><strong>Turnover (INR)<\/strong><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Micro Enterprise<\/td><td>Up to INR&nbsp; 1 Crore<\/td><td>Up to INR&nbsp; 5 Crore<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Small Enterprise<\/td><td>More than INR 1Crore and Up to&nbsp; INR 10 Crore<\/td><td>More than INR 5 Crore and Up to&nbsp; INR 50 Crore<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Medium Enterprise<\/td><td>More than INR 10 Crore and Up to&nbsp; Up to INR&nbsp; 50 Crore<\/td><td>More than INR 50 Crore and Up to&nbsp; Up to INR&nbsp; 250 Crore<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">&nbsp;<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><br>The Amendment is expected to make a considerable change for the MSME Sector while moving the scenarios towards self-sustainability.<\/p>\n\n\n\n<p>Earlier the Classification was done on the basis of the categories as Manufacturing and Service enterprises and consequent to this amendment they have been considered under the common matrix and have being categorised under as investment in plants and machinery or equipment and turnover.<\/p>\n\n\n\n<p>The Following Schemes are available for MSME:<\/p>\n\n\n\n<ul><li><a href=\"https:\/\/pib.gov.in\/PressReleseDetail.aspx?PRID=1607108\">Prime Minister Employment Generation Programme<\/a> and Other Credit Support Schemes;<\/li><li>Development of Khadi, Village and Coir Industries;<\/li><li>Technology Upgradation and Quality Certification;<\/li><li>Marketing Promotion Schemes;<\/li><li>Entrepreneurship and <a href=\"https:\/\/enterslice.com\/learning\/esdp-ati-schemes-under-msme%EF%BB%BF\/\">skill Development Programme<\/a>;<\/li><li>Infrastructure Development Programmes;<\/li><li>Scheme of Information, Education and Communication<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">&nbsp;Points to Ponder:<\/h2>\n\n\n\n<p>The following points to be kept in mind while considering the criteria for classification also taking into consideration composite investment &amp; turnover criteria:<\/p>\n\n\n\n<ul><li>If the Enterprises crosses any of the ceiling limits in its own present category as compared to two criteria therein then it will cease to exist in that category and be placed in next higher category whereas, no enterprises shall remain or placed in lower until and unless it goes below ceiling limits for both Investment as well as turnover;<\/li><li>All the Units\/Establishments with GSTIN listed against the Same PAN shall be collectively treated as one enterprise and the turnover and investment figures for all shall be seen together for classification purpose.<\/li><li>Calculative means for Investment in Plant and machinery or equipment:<\/li><\/ul>\n\n\n\n<ul><li>Should be linked with the <a href=\"https:\/\/enterslice.com\/income-tax-return-filing\">ITR<\/a> of previous years filed under Income Tax, 1961 for Existing enterprises.<\/li><li>For New Enterprises where no ITR available be considered on the basis of Self declaration of Promoter and the same shall end post 31<sup>st<\/sup>&nbsp;March of the first financial year with Mandatory GSTIN and PAN in possession.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><\/h2><p><strong>Conclusion<\/strong><\/p>\n\n\n\n<div class=\"shadow1\">MSME Sector Contributes approximately 29%  of India&rsquo;s GDP and is of almost half of the Exports prevailing as if now. \nDespite holding 49% share in India&rsquo;s exports, the MSMEs have significantly contributed towards opportunities or employment for the country in a whole.\nThe Current Package will pave the way for the microlayers in the MSME Ecosystem and ensures the more players enter into the field.\n<\/div>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/enterslice.com\/learning\/udyam-registration-for-msme\/\">Amendment in Selection Criteria for MSME<\/a><\/mark><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Widening the ambit of Classifying the MSME Enterprises On the 26th&nbsp;June 2020 Government of India (GOI) considering the initiative drive under the Atmanirbhar Bharat Abhiyaan relief package, the GOI came up with the amendment in the Existing&nbsp; Structure for MSME Classification. With the aim of the Government is to take in a large number of [&hellip;]<\/p>\n","protected":false},"author":43,"featured_media":37940,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[3188],"tags":[],"acf":{"service_id":"71"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Amendment in Selection Criteria for MSME \u2013 Enterslice<\/title>\n<meta name=\"description\" content=\"India considering the initiative drive under the Atmanirbhar Bharat Abhiyaan with the amendment in the Existing Structure for MSME Classification.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/amendment-in-selection-criteria-for-msme\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Amendment in Selection Criteria for MSME \u2013 Enterslice\" \/>\n<meta property=\"og:description\" content=\"India considering the initiative drive under the Atmanirbhar Bharat Abhiyaan with the amendment in the Existing Structure for MSME Classification.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/amendment-in-selection-criteria-for-msme\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2020-09-23T07:00:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-09-23T07:26:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/09\/Amendment-in-Selection-Criteria-for-MSME.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"670\" \/>\n\t<meta property=\"og:image:height\" content=\"352\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Simardeep Singh","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Simardeep.jpeg","authorDescription":"Simardeep brings with himself over 3 years of experience in Compliance &amp; Legal domain. Professionally, he is a Company Secretary, Law Graduate and a Bachelor in Commerce.\r\nAs a professional, he has handled various Corporate Law and Secretarial Assignments for Big Corporates. He also has hands-on experience in setting up entities in India &amp; Abroad along with Involvement in Investment Banking Deals.  Also provides advisory on NCLT, RBI, and FEMA compliances and acts as a mentor for startups from the Compliance prospective.","postViews":427,"readingTime":3,"nextPost":{"id":37995,"slug":"residential-status-under-fema-and-finance-law"},"prevPost":{"id":37929,"slug":"rbi-master-directions-on-priority-sector-lending"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/09\/Amendment-in-Selection-Criteria-for-MSME.jpg","postTerms":"MSME","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/37939"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=37939"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/37939\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/37940"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=37939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=37939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=37939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}