With effect from 01-04-2025, the classification of Micro, Small and Medium enterprises has been revised keeping in view the criteria of Investment in Plant & Machinery and the Annual Turnover. As per the Notification dated 21-03-2025 issued by the Ministry of Micro, Small and Medium Enterprises, the classification shall be as follows:
| Category | Investment in Plant & Machinery | Annual Turnover |
| Micro | Not more than Rs. 2.5 Crores | Not more than Rs. 10 Crores |
| Small | More than Rs. 2.5 Crores but Not more than Rs. 25 Crores | More than Rs. 10 Crores but Not more than Rs. 100 Crores |
| Medium | More than Rs. 25 Crores but not more than Rs. 125 Crores | More than Rs. 100 Crores but not more than Rs. 500 Crores |
Till 31-03-2025, the Micro, Small and Medium enterprises have been classified on the following basis :
| Category | Investment in Plant & Machinery | Annual Turnover |
| Micro | Not more than Rs. 1 Crore | Not more than Rs. 5 Crores |
| Small | More than Rs. 1 Crore but Not more than Rs. 10 Crores | More than Rs. 5 Crores but Not more than Rs. 50 Crores |
| Medium | More than Rs. 10 Crores but not more than Rs. 50 Crores | More than Rs. 50 Crores but not more than Rs. 250 Crores |
It is worthwhile mentioning the following points to be considered while classifying the Enterprises:
- While calculating the classification, both criteria shall be considered cumulatively for deciding the classification of the Enterprises. If in any case, the enterprise crosses any of the given criteria, then the enterprise ceases to exist in that present category and will be shifted to the next higher category.
- However, if the Enterprise needs to be shifted downward from a higher category to a lower category, then both the criteria needs to be fulfilled of the lower category.
- An enterprise with a single PAN with multiple GSTINs will be considered a single entity while deciding the classification. The turnover and investment in Plant & Machinery will be cumulatively aggregated for the purpose of classifying the entity into Micro, Small and Medium Enterprises.
- For the purpose of “Investment in Plant & Machinery”, the figure should be taken from the Income tax return after excluding the GST figure from the purchase invoice of that Plant & Machinery. It is pertinent to mention that only the tangible assets shall be covered in this criteria. If the entity is a newly incorporated entity, then the said classification shall be based on the self disclosure.
- For the purpose of “Turnover”, only the figure related to Income tax act or Goods and Services Tax act shall be considered for classification. It is to be highlighted that no export turnover shall be considered while deciding the classification. If the entity is a newly incorporated entity, then the said classification shall be based on the self disclosure.
To view and download the Notification, click here
