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20 Oct 2022
MSMEs Can Continue Availing Non-Tax Benefits Of Category It Was In Before Re-Classification
In a move that will further Ease of Doing Business for the MSME segment, the Ministry of MSME 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 can continue to avail of all non-tax benefits of the category it was in before the reclassification, for a period of three years from the date of such upward change.
As per the notification, the decision was taken after due deliberations with MSME stakeholders and in line with the Aatma Nirbhar Bharat Abhiyan. Non-tax benefits include benefits of various schemes of the Government, including Public Procurement Policy, Delayed Payments, etc.
Data shared by the Government shows that 93,048 micro enterprises had become small enterprises in the period July 2020 and July 2022, while 10,141 small businesses had grown to become medium businesses in the same period.
