MSME Notification

Notification issued for MSME enterprises

Notification issued for MSME enterprises to continue to avail of all non-tax benefits of the category it was in before the re-classification, for a period of three years from the date of such upward change

The Ministry of MSME vide S.O. 4926 (E) dated 18.10.2022 has notified that in case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterprise shall continue to avail of all non-tax benefits of the category it was in before the re-classification, for a period of three years from the date of such upward change.

This decision has been taken after due deliberations with MSME stakeholders and is in line with the Aatma Nirbhar Bharat Abhiyan. The Ministry of MSME, Government of India, has allowed those registered MSMEs to continue to avail of non-tax benefits for three years, instead of one year, in case of an upward graduation in their category and consequent reclassification.

Non-tax benefits include benefits of various schemes of the Government, including Public Procurement Policy, Delayed Payments, etc.

Download the notification from here:

Classification of MSME Enterprises

Criteria for classifying the enterprises as Micro, Small and Medium Enterprises with effect from the 1st day of July, 2020:

(i) a micro enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;

(ii) a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and

(iii) a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.

Composite criteria of investment and turnover for classification.–

(1) A composite criterion of investment and turnover shall apply for classification of an enterprise as micro, small or medium.

(2) If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category but no enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.

(3) All units with Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) shall be collectively treated as one enterprise and the turnover and investment figures for all of such entities shall be seen together and only the aggregate values will be considered for deciding the category as micro, small or medium enterprise.

Composite criteria of investment and turnover for classification

  1. A composite criterion of investment and turnover shall apply for classification of an enterprise as micro, small or medium.
  2. If an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category but no enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.
  3. All units with Goods and Services Tax Identification Number (GSTIN) listed against the same Permanent Account Number (PAN) shall be collectively treated as one enterprise and the turnover and investment figures for all of such entities shall be seen together and only the aggregate values will be considered for deciding the category as micro, small or medium enterprise.

Calculation of investment in plant and machinery or equipment

  1. The calculation of investment in plant and machinery or equipment will be linked to the Income Tax Return (ITR) of the previous years filed under the Income Tax Act, 1961.
  2. In case of a new enterprise, where no prior ITR is available, the investment will be based on self-declaration of the promoter of the enterprise and such relaxation shall end after the 31st March of the financial year in which it files its first ITR.
  3. The expression ‘’plant and machinery or equipment’’ of the enterprise, shall have the same meaning as assigned to the plant and machinery in the Income Tax Rules, 1962 framed under the Income Tax Act, 1961 and shall include all tangible assets (other than land and building, furniture and fittings).
  4. The purchase (invoice) value of a plant and machinery or equipment, whether purchased first hand or second hand, shall be taken into account excluding Goods and Services Tax (GST), on self-disclosure basis, if the enterprise is a new one without any ITR.
  5. The cost of certain items specified in the Explanation I to sub-section (1) of section 7 of the Act shall be excluded from the calculation of the amount of investment in plant and machinery.

Calculation of Turnover

  • Exports of goods or services or both, shall be excluded while calculating the turnover of any enterprise whether micro, small or medium, for the purposes of classification.
  • Information as regards turnover and exports turnover for an enterprise shall be linked to the Income Tax Act or the Central Goods and Services Act (CGST Act) and the GSTIN.
  • The turnover related figures of such enterprise which do not have PAN will be considered on self-declaration basis for a period up to 31st March, 2021 and thereafter, PAN and GSTIN shall be mandatory.

    In case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterprise will maintain its prevailing status till expiry of one year from the close of the year of registration.

    In case of reverse-graduation of an enterprise, whether as a result of re-classification or due to actual changes in investment in plant and machinery or equipment or turnover or both, and whether the enterprise is registered under the Act or not, the enterprise will continue in its present category till the closure of the financial year and it will be given the benefit of the changed status only with effect from 1st April of the financial year following the year in which such change took place. Other aspects relating to registration of enterprises, grievance redressal, etc. are mentioned in the Gazette Notification S.O. 2119 (E) dated June 26, 2020.

Source : IBC Laws – Classification of MSME Enterprises under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 – N. No. S.O. 2119(E) dated 26.06.2020- amended up to date

https://pib.gov.in/PressReleasePage.aspxPRID=1869091#:~:text=2022%20has%20notified%20that%20in,of%20three%20years%20from%20the

https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11934&Mode=0

After 14 years since the MSME Development Act came into existence in 2006, a revision in MSME definition was announced in the Atmanirbhar Bharat package in May 2020

WAD 2022 Celebrations from CCC

2 Days Conference on Sustainability – World Accreditation Day 2022 Celebrations at Chennai on June 9-10 2022 (Hybrid Session)

About #WAD2022

June 9th 2022 marks World Accreditation Day (#WAD2022), a global initiative established by ILAC and IAF to promote the value of accreditation.

Download the following announcements :

This year’s theme :

Accreditation: Sustainability in Economic Growth and the Environment, focuses on how accreditation supports the United Nations Sustainable Development Goals – (SDGs) 6, 7, 8, 9, 11, 12, 13, 14, 15.

#WAD Celebrations – an annual initiative from Consultants Consortium of Chennai (CCC)

CCC has been organising series of Knowledge Sessions for the benefit of the industry during WAD Month since its inception. WAD 2020 and WAD 2021 were well received by the industry. We had conducted virtual learning sessions during this period.

#WAD2022 Celebrations

WAD 2022, however would be a Hybrid Session. We are planning to organise a physical session in University Auditorium in Chennai with a target audience of around 100 -150 members (offline) and plus online viewers.

The Conference is jointly organized by International Accreditation Service (IAS), USA and Bureau of Indian Standards

International Accreditation Service

IAS is a nonprofit, public-benefit corporation that help organizations demonstrate compliance and competence to their customers, regulators and the public. IAS has been providing accreditation services since 1975. IAS accredits a wide range of companies and organizations including governmental entities, commercial businesses, and professional associations. IAS accreditation programs are based on recognized national and international standards that ensure domestic and/or global acceptance of its accreditations.

IAS also maintains signatory status in a number of global multilateral recognition arrangements under Asia Pacific Accreditation Cooperation (APAC), International Accreditation Forum (IAF) and International Laboratory Accreditation Cooperation (ILAC). IAS is a member of the ICC Family of Solutions.

As one of the leading accreditation bodies in the United States, IAS is a signatory to the three primary international organizations that form a unified system for evaluating and recognizing competent accreditation bodies worldwide.

Bureau of Indian Standards

BIS is the National Standard Body of India established under the BIS Act 2016 for the harmonious development of the activities of standardization, marking and quality certification of goods and for matters connected therewith or incidental thereto. BIS has been providing traceability and tangibility benefits to the national economy in a number of ways – providing safe reliable quality goods; minimizing health hazards to consumers; promoting exports and imports substitute; control over proliferation of varieties etc. through standardization, certification and testing

Keeping in view, the interest of consumers as well as the industry, BIS is involved in various activities as given below:

Standards Formulation
Product Certification Scheme
Compulsory Registration Scheme
Foreign Manufacturers Certification Scheme
Hall Marking Scheme
Laboratory Services
Laboratory Recognition Scheme
Sale of Indian Standards
Consumer Affairs Activities
Promotional Activities
Training Services, – National & International level
Information Services

Conference Theme :

Sustainability in Economic Growth and the Environment
-How accreditation supports the United Nations Sustainable Development Goals (SDGs) 6, 7, 8, 9, 11, 12, 13, 14, 15.

Conference Sessions are built for multiple sectors touching upon the Sustainability Initiatives in various sectors and applicability of various Standards, Certifications, Accreditations , Regulations to ensure that Sustainable Products and Services are offered to Consumers.

Sustainability is a Trade Issue and World Markets are linking World Trade to Sustainability initiatives adopted by various countries.

ESG is based on standards set by lawmakers, investors, and ESG reporting organizations (e.g., GRI, TCFD, MSCI), whereas Sustainability Standards — while also set by standards groups like GHG Protocol — are more science-based and standardized.

Dates :
June 9th and 10th 2022 – Thu & Fri
Time – 10 00 am – 5 45 pm IST
Session Mode – Hybrid (Online and Physical)
Venue – Auditorium inside Anna University Campus

Who should attend ?

Sessions would be open to Accreditation Bodies, Certification Agencies, Conformity Assessment Bodies, Inspection bodies, Govt organisations, Members of Trade & Industry Associations, Chambers of Commerce, Entrepreneurial Hubs, MS Consultants, Technical Experts, Startups, Innovators

Sessions at a glance :

Program Agenda
Day 1 – Inaugural Session

Registration Details

Open to all stakeholders in Conformity Assessment.

Industry, ABs, CBs, CABs, Inspection bodies, Consultants, Technical Experts, Industry Associations, Innovators, Start-ups, Entrepreneurial Platforms, Government organisations.

There is NO REGISTRATION FEE

However prior registration is a must for participation.


Contact Co-ordinators

Ms Rama Venugopal, President
Whatsapp +91 9840870532
Email – contact@ccc-consultants.org

Mr D Srikanthan, Secretary
Whatsapp +91 9003056539
Email – secretariat@ccc-consultants.org

Secretariat Office
Phone+044 24462337 / 24462338
Email – communication@cccassociation.org

MSME Definition Widened

MSME Definition to include Retail and Wholesale Trade Businesses

Ministry of #MSME has announced revised guidelines for #MSMEs with inclusion of Retail and Wholesale trade businesses as MSMEs. This is done to strengthen these MSME businesses and make them engines for economic growth.

Shri Gadkari said the revised guidelines will benefit 2.5 Crore Retail and Wholesale Traders. He said Retail and wholesale trade were left out of the ambit of MSME, now under the revised guidelines, retail and wholesale trade will also get benefit of priority sector lending under RBI guidelines.

With the revised guidelines the Retail and wholesale trades will be now be allowed to register on Udyam Registration Portal.

Source – https://pib.gov.in/PressReleasePage.aspx?PRID=1732193

MSME Registration Link – Udyam Registration Portal Link