New Delhi, Feb 7 (UNI) The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved change in the basis of classifying Micro, Small and Medium enterprises from *’investment in plant & machinery/equipment’* to *’annual turnover’*.
This will encourage ease of doing business, make the norms of classification growth oriented and align them to the new tax regime revolving around GST (Goods & Services Tax).
*Revised definition – based on ANNUAL TURNOVER:*
(For both, Manufacturing and service rendering units)
> *Micro* enterprise – Turnover up to Rs 5 cr
> *Small* enterprise – Turnover Rs. 5 cr to 75 cr
> *Medium* enterprise – Turnover Rs. 75 cr to 250 cr
Category: CA VANDANA DODHIA