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    Question

    Which of the following statements is not correct

    regarding the calculation of turnover for MSME classification?
    A Export turnover is excluded while computing the turnover of an enterprise. Correct Answer Incorrect Answer
    B Export turnover is mandatorily included in the turnover for classification. Correct Answer Incorrect Answer
    C Turnover figures are derived from linked income tax returns and GST data. Correct Answer Incorrect Answer
    D For new enterprises, self-declaration is permitted until 31st March 2021, after which PAN and GSTIN become compulsory. Correct Answer Incorrect Answer
    E From the second year onwards, turnover must be verified through ITR and GST portals. Correct Answer Incorrect Answer

    Solution

    While classifying enterprises under MSME definitions, the turnover calculation follows specific rules: • Exports of goods and services are excluded from turnover, ensuring that enterprises focusing on exports are not penalized. • Turnover data is primarily sourced from linked income tax returns and GST portals, ensuring accuracy and transparency. • In the case of new enterprises, turnover may initially be based on self-declaration until 31st March 2021. • From April 1, 2021 onwards, it is mandatory for enterprises to have PAN and GSTIN for proper turnover assessment.

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