New definition has broadened the horizon of MSME–CA Julfesh Shah

The amendment in the definition of MSME after a span of 14 years has widened & broadened the scope & horizon of MSME & now about almost 92% of the total manufacturing & service units in India  will qualify in the eligibility criteria of MSME said CA Julfesh Shah renowned MSME & Subsidy consultant while addressing the Webinar organised by Chamber of Small Industry Associations (COSIA).

He further said that the criteria for new definition which has become effective w.e.f.1st July 2020  doesn’t differentiate now between the manufacturing & service sector for the classification of MSME units under Micro,Small & Medium Enterprises.Now dual criteria of investment in plant & machinery & turnover needs to be fulfilled for classification of MSME units.

As per new definition for Micro enterprises investment in plant,machinery & equipments should be less than 1 crore & turnover should be less than 5 crores.For small enterprises investment in plant,machinery & equipments should be less than 10 crores & turnover should be less than 50 crores & for medium enterprises it is 50 crores & 250 crores respectively.For calculating turnover export turnover is specifically excluded.

CA Shah further said that from 1st July 2020 online Udyam registration needs to be done of all MSME units on self declaration basis.Existing units who are holding Udyog Aadhar Memorandum will have to register again under Udyam Registration portal on or before 31st March 2021.

The investment in plant & machinery/equipments is to be taken on the basis of last ITR filed with the Income tax Department of the concerned unit.Udyam Registration will also be linked with Aadhar & GSTIN portal.So one needs to be careful & furnish correct details while filling the particulars for registering under Udyam,cautioned Shah.He also elaborated on the various benefits that can be availed by the MSME units & various incentives, concessions & subsidies that are available for MSMEs.

Other speaker Mr Sanjeet Kumar Jha,CEO,Care Advisory,Mumbai made presentation on sectoral analysis of MSMEs & deliberated on the various challenges & limitations faced by MSME sector in the present scenario.He further said that MSMEs must take advantage of relaxation in repayment of loans & various soft loans under different schemes tailored  for MSMEs by Govt in view of the ongoing pandemic.

In his sectoral analysis he said that hospitality,tourism & hotel industry are the worst affected sector & it may take a span of 2 to 3 years for them to recover & come back.Presently pharma,healthcare,agro processing sectors are promising & better off as compared to other sectors.

At the outset Shri Mayank Shukla ,Chairman COSIA, Vidarbha while welcoming the faculties and participants, said that the  new  definition and classification of MSME has come for the first time in the fourteen years and for the first time since its formation in the year 2006.This  has come because of the Broader vision of our Hon’ble Prime Minister Shri Narendra Modiji and the dynamic leadership of our Union MSME Minister Shri Nitin Gadkariji.

The new definition gives enough space to those who want to grow and make nation economically stronger.It is aimed at taking more and more enterprises under its umbrella and promote their activities to compete globally.

COSIA has always been in forefront to update  industrial fraternity on recent developments that matters them.By way of organising various webinars,COSIA aims to update the participants & entrepreneurs on the various  happenings in the most important MSME sector of the country’s economy.

While summing up the proceedings of the Webinar, Shri Mayank Shukla  applauded the efforts of eminent speakers CA Julfesh Shah and Shri Sanjeetkumar Jha who explained their subject matter so exhaustively and satisfied the queries of participants.

The response from the participants were also equally interesting and extracting the matter as much as possible. Shri Shukla said he was overwhelmed to see participants not only from Maharastra State but from places as far as Varanasi & Bengaluru.Shri Pranav Ambalselkar introduced the speakers  & coordinated the webinar proceedings.Large no of entrepreneurs, industrialists, professionals from all over the country participated in the webinar.