MSME Ministry Issued Revised Notification for MSMEs Under Non-Tax Benefits

Notification issued for MSME enterprises to continue to avail of all non-tax benefits of the category it was in before the re-classification, for a period of three years from the date of such upward change

SMEStreet Edit Desk October 19, 2022Last Updated: October 19, 2022

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BB Swain, Narayan Rane — The Union Minister for Micro, Small and Medium Enterprises, Shri Narayan Tatu Rane at the 18th meeting of National Board of MSME, in New Delhi on September 14, 2022.

The Ministry of MSME vide S.O. 4926 (E) dated 18.10.2022 has notified that in case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterprise shall continue to avail of all non-tax benefits of category it was in before the re-classification, for a period of three years from the date of such upward change.

This decision has been taken after due deliberations with MSME stakeholders and is in line with the Aatma Nirbhar Bharat Abhiyan. The Ministry of MSME, Government of India, has allowed those registered MSMEs to continue to avail of non-tax benefits for three years, instead of one year, in case of an upward graduation in their category and consequent reclassification. Non-tax benefits include benefits of various schemes of the Government, including Public Procurement Policy, Delayed Payments, etc.