Question
Consider the revised MSME classification (effective July
2020) and evaluate these statements: 1. The distinction between manufacturing and service sectors has been removed. 2. A 'Medium' enterprise has an investment limit of ₹50 Crore and a turnover limit of ₹250 Crore. 3. Export turnover is included when calculating the total turnover for MSME classification. Which of the statements above is/are correct?Solution
Statement 3 is incorrect. According to the government guidelines, export turnover of goods or services is excluded while calculating the turnover for the purpose of MSME classification to encourage exports.
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