Micro, Small, and Medium Enterprises (MSMEs) form the backbone of the Indian economy, contributing significantly to employment, innovation, and exports. Recognizing their importance, the Government of India offers various benefits, subsidies, and protections to MSMEs under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.
At Tax Craft Services, we help entrepreneurs, startups, traders, manufacturers, and service providers with MSME registration, compliance support, subsidy claims, and legal protection under the Act.
As per the revised MSME classification effective from July 1, 2020, businesses are categorized based on investment in plant & machinery and annual turnover:
| Type | Investment (Plant/Machinery) | Annual Turnover |
|---|---|---|
| Micro | ≤ ₹1 crore | ≤ ₹5 crore |
| Small | ≤ ₹10 crore | ≤ ₹50 crore |
| Medium | ≤ ₹50 crore | ≤ ₹250 crore |
MSME registration is now called Udyam Registration, and only Aadhaar-based digital registration is valid.
Note: Udyam registration is paperless and requires self-declaration only.
| Violation | Consequence |
|---|---|
| Providing false information during Udyam registration | Penalty under Section 27 of MSMED Act |
| Not updating details after crossing turnover/investment limits | Risk of disqualification |
| Misuse of MSME benefits | Legal recovery of subsidy + penalties |
| Non-payment to MSME suppliers within 45 days | Attracts interest @ 3 times RBI rate, case under MSME Samadhaan |
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