‘MSME’s new definition has broadened its scope’
14 Jul 2020 09:33:28
Business Bureau ;
The amendment in the definition of MSME after a span of 14 years has widened and broadened the scope and horizon of MSME and now almost 92 per cent of the total manufacturing and service units in India will qualify in the eligibility criteria of MSME, said CA Julfesh Shah, renowned MSME & Subsidy consultant. He was addressing the webinar organised by Chamber of Small Industry Associations (COSIA). He further said that the criteria for new definition which has come into effective from July 1, now doesn’t differentiate between the manufacturing and service sector for the classification of MSME units under Micro, Small and Medium Enterprises.
“Now dual criteria of investment in plant and machinery and turnover needs to be fulfilled for classification of MSME units. As per the new definition for Micro enterprises investment in plant, machinery and equipment, should be less than Rs 1 crore and turnover should be less than Rs 5 crore. For small enterprises investment in plant, machinery and equipment should be less than Rs 10 crore and turnover should be less than RS 50 crore and for medium enterprises it is Rs 50 crore and Rs 250 crore respectively,” he explained. CA Shah further said that from July 1, online Udyam registration needs to be done of all MSME units on self declaration basis.
Existing units that are holding Udyog Aadhar Memorandum will have to register again under Udyam Registration portal on or before March 31, 2021. Udyam Registration will also be linked with Aadhar and GSTIN portal, he said. Another speaker Sanjeet Kumar Jha, CEO, Care Advisory, Mumbai, made presentation on sectoral analysis of MSMEs and deliberated on the various challenges and limitations faced by MSME sector in the present scenario. He said that MSMEs must take advantage of relaxation in repayment of loans and various soft loans under different schemes tailored for MSMEs by the Government in view of the ongoing pandemic. In his sectoral analysis Jha said that hospitality, tourism and hotel industry are the worst affected sectors and it may take a span of 2 to 3 years for them to recover.
At the outset Mayank Shukla, Chairman COSIA, Vidarbha, said that the new definition and classification of MSME has come for the first time in the fourteen years. CA Shah and Sanjeetkumar Jha explained the subject matter exhaustively and also satisfied the queries of the participants. While summing up the proceedings of the webinar, Mayank Shukla applauded the efforts of eminent speakers CA Shah and Sanjeetkumar Jha who explained their subject matter so exhaustively and satisfied the queries of participants. At the outset, Pranav Ambalselkar introduced the speakers and coordinated the webinar proceedings. Large number of entrepreneurs, industrialists, professionals and others from all over the country participated in the webinar. COSIA has always been in forefront to update industrial fraternity on recent developments that matters them.