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Start learning 50% faster. Sign in nowComposite criteria of investment and turnover for classification of MSME:- A composite criterion of investment and turnover shall apply for classification of an enterprise as micro, small or medium. · 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. · 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 such entities shall be seen together and only the aggregate values will be considered for deciding the category as micro, small or medium enterprise. The definition of micro, small and medium enterprises is as under as per MSMED Act 2006 (amendment 2020): · A micro enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹1 crore and turnover does not exceed ₹5 crore; · A small enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹10 crore and turnover does not exceed ₹50 crore ; and · A medium enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹50 crore and turnover does not exceed ₹250 crore.
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