The Ministry of MSMEs (micro small and medium enterprises) has notified that all registered MSMEs will be allowed to continue to avail of all non-tax benefits for three years instead of one year, even after upward graduation in their category and consequent reclassification.
This notification has been issued by the Ministry of MSME.
This decision has been taken after due deliberations with MSME stakeholders and is in line with the Aatma Nirbhar Bharat Abhiyan.
Non-tax benefits include benefits of various schemes of the government like public procurement policy and delayed payments among others.
Landmark Decision: MSMEs on upgradation and consequent reclassification, get non-tax benefits for a period of 3 years from the date of upward change #MSME #NSIC #KVIC #COIRBOARD #SCSTHUB#AmritMahotsav pic.twitter.com/Zy4t4Nz9La
— Ministry of MSME (@minmsme) October 18, 2022
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 the category it was in before the re-classification, for a period of three years from the date of the such upward change, the notification said.
This decision was taken after due deliberations with MSME stakeholders, official sources said.
The government had recently reclassified MSMEs into manufacturing and services sectors.
These were further classified into micro, small and medium enterprises based on investment in plant and machinery for manufacturing and investment into equipment in respect of the services sector.