New Delhi [India], Feb 8 (ANI-NewsVoir): "Change in the MSMEs classification from investment in plant and machinery to turnover criteria is a major breakthrough in the Ease of Doing Business for MSMEs and a step forward in synchronisation of business firms with GST," said President, PHD Chamber, Anil Khaitan.
Change in Classification Criteria of MSMEs
"While appreciating the cabinet decision on reclassification of the MSMEs and increasing the limit of micro (where the annual turnover does not exceed five crore rupees), small enterprises (where the annual turnover is more than five crore rupees but does not exceed Rs. 75 crore) and medium enterprises (where the annual turnover is more than seventy five crore rupees but does not exceed Rs. 250 crore), would go a long way to expand production possibilities frontiers of MSMEs and create new employment opportunities in the economy," said Anil Khaitan.
"The GST network and other methods of ascertaining will help in having non discretionary, transparent and objective criteria and eliminate the need for inspections, thus, making the classification system progressive and evolutionary," he said.
"Over the years, the MSME sector has emerged as an important vehicle for attaining inclusive growth in the country. The sector accounts for 45 percent of manufactured and close to 40 percent of all exports from the country, provide employment to more than 100 million people and contribute at around 37-38 percent in GDP if the services sector MSMEs are also included," said Khaitan.
"The recent reforms undertaken by the government in the fate of MSMEs such as reducing the corporate tax to 25 percent (for turnover less than Rs. 250 crore) and reclassification are appreciable and in line with the industry expectations," he concluded. (ANI-NewsVoir)