Ministry
of Micro, Small and Medium Enterprises vide Gazette ID No. CG-DL-E-26062020-220191 dated 26.06.2020 has notified:-
Classification of Enterprises
An enterprise shall be classified as a micro, small
or medium enterprise on the basis of the following criteria, namely:-
Micro: Investment < Rs. 1 cr. and Turnover <
Rs. 5 cr.
Small: Investment < Rs. 10 cr. and Turnover <
Rs. 50 cr.
Medium: Investment < Rs. 50 cr. and Turnover <
Rs. 250 cr.
Note: Investment in plant and machinery or equipment
will be considered for above criteria
Becoming a Micro, small or medium Enterprises
Any
person who intends to establish a micro, small or medium enterprise may file
Udyam Registration online in the Udyam Registration portal, based on
self-declaration with no requirement to upload documents, papers, certificates
or proof.
On
registration, an enterprise (referred to as Udyam in the Udyam
Registration portal) will be assigned a permanent identity number to be
known as Udyam Registration Number.
An
e-certificate, namely, Udyam Registration Certificate‖ shall be issued
on completion of the registration process.
Composite criteria of Investment and turnover for
classification
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 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
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.
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.
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).
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.
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.
Source: http://egazette.nic.in/WriteReadData/2020/220191.pdf
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