MSME Policies Guide

MSME POLICIES
- Changing MSME Landscape

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MSME DEFINITIONS
Category Manufacturing Sector Service Sector
Investment in Plant and
Machinery
Investment in
Equipment
Micro Enterprises Upto 25 Lakhs Upto 10 Lakhs
Small Enterprises Upto 5 Crores Upto 2 Crores
Medium Enterprises Upto 10 Crores Upto 5 Crores

MSME DEFINITIONS – NEW CRITERIA
Category Annual Turnover
Micro Enterprises Does on exceed Rs. 5 crores
Small Enterprises Does on exceed Rs. 75 crores
Medium Enterprises Does on exceed Rs. 250 crores

MSME POLICIES

PUBLIC PROCUREMENT POLICY
• 25% of the total procurement of Goods and Services by
Government Departments / CPSEs shall be done from
Micro and Small Enterprises (MSEs)
• Provide minimum 3% reservation for women owned MSEs
• 358 items are reserved for exclusive procurement from
MSEs.

PUBLIC PROCUREMENT POLICY

SOME IMPORTANT WEBSITES
• https://www.psbloansin59minutes.com
• https://gem.gov.in/
• https://www.mudra.org.in/
• https://udyogaadhaar.gov.in

MUDRA FACTS

GEM PORTAL FACTSHEET

Register at www.msmedatabank.in
As per MSMED (Furnishing of Information) Rules, 2016
notified by GSR 750(E) dated July 19th, 2016, all Micro,
Small and Medium enterprises are mandatorily required
to provide information about the business on the MSME
databank for availing benefits in various schemes of the
MSME Ministry.
MSME DATABANK

Register at www.msmedatabank.in
Benefits of Registration
 Comprehensive database of MSMEs in India
 MSMEs registered under the MSME databank will be
eligible for becoming supplier of Government
organisations and entities
 Assist government to make policies
 Help Government to procured goods and services
under PPP
 Mandatory for availing CLCSS Subsidy
MSME DATABANK

MSME DATABANK

CREDIT LINKED CAPITAL SUBSIDY FOR
TECHNOLOGY UPGRADATION
Related Scheme Scheme for 'Credit Linked Capital Subsidy for
Technology Upgradation (CLCS- TU)'
Description MSEs can get a capital subsidy (~15%) on credit
availed for technology upgradation
Nature of assistance Financial assistance for availing credit and loan.
Who can be benefitted Micro and Small Enterprises (MSEs) having a valid
UAM number.
Who can apply?  1. Banks and financial institutions can apply to
DC-MSME for availing support.
 2. MSEs need to directly contact the respective
banks for getting credit and capital subsidy.
Replacement of existing equipment/technology with the same equipment/technology will
not qualify for subsidy under this scheme, nor would the scheme be applicable to units
upgrading with second hand machinery.

NSIC REGISTRATION
• Issue of the Tender Sets free of cost
• Exemption from payment of Earnest Money Deposit (EMD)
• Raw Material Assistance against Bank Guarantee
• Financial Assistance for participation of Domestic as well as
International Fairs
• Eligible for Public Procurement Policy

 Bank Loans between Rs. 10 Lakhs to Rs. 1 Crore
 Atleast One Schedule Caste (SC) or Schedule Tribe (ST)
borrower
 And one women borrower
 Per branch

- BENEFITS OF REGISTRATION

- ELIGIBILITY
Eligibility Particulars
Period of Entity Within 10 years of registration
Incorporation Status Private Limited Company / Registered
Partnership Firm / LLP
Annual Turnover Annual Turnover upto Rs. 100 crores
Product Working towards innovation, development or
improvement of products
New business means Entity should not have been formed by
spiliting up or reconstruction a business
already in existence
SEBI Recognised Venture
Captial Fund
Till date 194 registered VC
https://www.sebi.gov.in/sebiweb/other/Other
Action.do?doRecognisedFpi=yes&intmId=21

- ACTION PLAN
ACTION PLAN
Simplification and
Handholding
Funding support &
Incentives
Industry-Academia
Partnership and
Incubation

- TAX EXEMPTION
 After Recognition as Startup from DIPP, startup may apply for Tax
Exemption u/s 80 IAC of IT Act 1961.
 Can avail tax exemption for 3 consecutive financial years out of
first 10 years since Incorporation.
Eligibility
Recognised
Startup
Pvt Ltd Co/
LLP
Incorporated
after April 01,
2016

- ANGEL TAX
• Post getting recognition a Startup may apply for Angel Tax
Exemption.
Eligibility
DPIIT Recognised
Startup
Share Capital and
Share Premium
after propose issue
< 25 Crores

MSME SAMADHAN – SOLUTION OF DELAYED PAYMENTS

ACCESS OF SECURITY MARKET

 Can raise capital upto Rs. 25 Crores
 Greater credibility and enhanced financial
status
 Lessor compliances
 Can switch to main board

Criteria for New Listing
 Post issue capital shall not exceed Rs. 25 Crores
 Should have positive networth
 Net tangible assets should be atleast Rs. 3 crores
 Track record of 3 years
 Should not be in default
 Mandatory to have a corporate website
 Should not be any change of promoters in past one
year

HSN Code:
Harmonized System Nomenclature Code
-Developed by the World Customs Organization
(WCO) and adopted by more than 200 countries.
SAC Code:
Services Accounting Code
-Developed by the Service Tax Department of India
GOODS AND SERVICE TAX

ONE TIME RESTRUCTURING
SCHEME
MSMEs classified as ‘standard’ without a downgrade in
the asset classification, subject to the following
conditions:-
- Aggregate expousre (FB and NFB) does not exceed
Rs 250 Million (Rs. 25 Crores) as on January 01, 2019
- Borrower should be registered under GST as on
January
- Account was in default but is Standard as on January
01, 2019
- Registered with GST as on the date of implementation
of Restructuring

FRAMEWORK FOR REVIVAL AND
REHABILITATION OF MSMES
Who can apply:-
• MSMEs having aggregate limits upto Rs. 25.00 Crores
• Accumulated losses to the extent of 50% of the
networth during previous FY

MSME Policies Guide

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