SME Times News Bureau | 08 Feb, 2018
The Government has freed the Micro, Small and Medium Enterprises
(MSME) sector from ‘inspector raj’, said minister for the sector
Giriraj Singh on Thursday.
Addressing a group of reporters in New Delhi, Singh said, "We
have rescued the MSME sector from 'inspector raj'. This change in
classification will improve the ease of doing business and bring
erstwhile MSMEs in the formal sector."
On change of MSME definition based on annual turnover of units, he
said the classification will also help in skill development and
The Union Cabinet on Wednesday approved the change in the
definition of MSMEs according to which the enterprises with an annual
turnover not exceeding Rs five crore will fall under "micro"
"This will encourage ease of doing business, make the norms
of classification growth oriented and align them to the new tax
regime revolving around GST (Goods and Services Tax)," the
Finance Minister Arun Jaitley, in his
Budget presentation on February 1, had also announced relief for
boosting the MSME sector -- the largest employer in the country -- by
reducing the corporate taxation rate to 25 per cent for companies
with turnovers of up to Rs 250 crore.