Let us discuss about the new definition of MSME – turnover for the definition of MSMEs
MSMEs won't be characterized by investment anymore.
Union Minister Nitin Gadkari said in October 2019 that the revised definition of micro, small and medium-sized enterprises may grant a unified description of all tax, investment and more.
The changed description was to be implemented through an amendment that would further refine the Indian business scenario. Union Cabinet had approved the amendment to change the criteria for classifying MSMEs from "plant and machinery investment" to "annual turnover."
Finance Minister Nirmala Sitharaman added the additional turnover concept alongside the expenditure on 13 May 2020.