MSME New limits and latest Amendments


MSME stands for Micro, Small, and Medium Enterprises. In accordance with the Micro, Small, and Medium Enterprises Development (MSMED) Act in 2006, the enterprises are classified into two divisions.

Manufacturing enterprises – engaged in the manufacturing or production of goods in any industry

Full Course Videos in Hindi English
Check Here
jaiib ppb short notes part 1
Check Here
jaiib exam free study material
Check here
jaiib study material pdf notes 2022
Get Tests Here
how to prepare for ppb
Check Here

Service enterprises – engaged in providing or rendering services


However, on 1st June,2020 , the Union Cabinet headed by Prime Minister Narendra Modi officially revised the MSME definition. The recent changes in the definition of micro, small, and medium-sized enterprises made as a part of the Atmanirbhar Bharat Abhiyaan relief package were approved.

As per this amendment, the investment limit of MSMEs has been revised and an additional criteria of “turnover” has also been added to its definition.

As per these guidelines, the revised investment & turnover limits are listed as below :

Classification Investment Limit Turnover Limit
Micro Less than INR 1 Crore Less than INR 5 Crore
Small INR 1 to 10 Crore INR 1 to 25 Crore
Medium INR 10 to 50 Crore INR 25 to 250 Crore


As per the revised guidelines, the government has removed the distinction between the manufacturing and services sector.

The following amendments are made by the government regarding Micro, Small & Medium Enterprises to be effective from July 01, 2020 :-

  • For the purpose of investment limit, the investment in Plant and Machinery and Equipment as per previous year Income Tax Return are to be considered.
  • In case of new enterprise, where no ITR is available, the Investment will be on self-declaration
  • Information as regard turnover or export turnover are to be linked to Income Tax Act or GSTN.
  • For the purpose of turnover limit, EXPORT of sale is to be excluded.
  • The turnover related figures of such enterprise which do not have PAN will be considered on self-declaration
  • Registration process has been made easy; no document is required to be uploaded now.
  • MSME Registration shall be called Udyam and permanent identity number to be known as“Udyam Registration Number”.
  • All existing registered enterprises shall require registering again. The existing enterprises registered prior to June 30, 2020, shall continue to be valid only for a period up to the March 31, 2021.

Accounting & Finance for Banking

Principles & Practices of Banking Module E Pdf

Module E PPB ePDFs available in our android app. Get them all at

Accounting and Finance for Banking Module A Pdf

Accounting and finance for bankers all ePDFs are available in our an app. Get them all at

Accounting and Finance for Banking Module A Pdf

Accounting and finance for bankers all ePDFs are available in our an app. Get them all at

Leave a reply

Please enter your comment!
Please enter your name here


Free Live Classes


More from author

All about KYC/AML Exam by IIBF

All about KYC/AML Exam by IIBF The KYC/AML is a professional certification exam in Anti Money Laundering and Know your customer conducted by the Indian...

CCP- Certified Credit Professional Course by IIBF

IIBF CCP (Certified Credit Professional) exam is an All-India Exam directed by the Indian Institute of Banking and Finance (IIBF) to select competent candidates...

What is Digital Banking in Detail

Digital Banking is the automation of traditional banking services. It is defined as banking done through the digital platform, doing away with all the...

Digital Banking Course By IIBF

Digital Banking Course By IIBF Certificate course in Digital Banking is conducted by IIBF to provide practicing bankers a sound foundation in the digital banking...