Non-tax benefits for MSMEs for 3 years even after reclassification

The government on Wednesday said that micro, small and medium enterprises (MSME) will continue to avail all non-tax benefits in their respective categories post re-classification for three years, in a major relief for the sector.

The MSME ministry notified that in case of re-classification in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterprise shall continue to avail of all non-tax benefits of the category it was in before the re-classification for three years from the date of the such upward change.

"This decision has been taken after due deliberations with MSME stakeholders and is in line with the Atmanirbhar Bharat Abhiyan," the ministry said in a statement.


"Landmark Decision: MSMEs on upgradation and consequent reclassification, get non-tax benefits for a period of 3 years from the date of upward change," the ministry said in a tweet.