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India's small businesses get extended relief on non-tax benefits

India's small businesses get extended relief on non-tax benefits

India's small businesses get extended relief on non-tax benefits
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By Nishtha Pandey  Oct 19, 2022 1:42:10 PM IST (Published)

The Ministry of MSME, Government of India, has allowed those registered MSMEs to continue to avail of non-tax benefits for three years, instead of one year, in case of upward graduation in their category and consequent reclassification.

Prime Minister Narendra Modi on Wednesday, during the inauguration of the DefExpo 22 in Gujarat, announced that in case of upward revision in investment or turnover resulting in a reclassification of micro, small and medium enterprises, the enterprise shall continue availing all non-tax benefits as it did before reclassification for a period of three years.

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Earlier an enterprise was allowed to avail non-tax benefits for one year from the date of reclassification.
“The ministry of MSME has notified that in case of an upward change 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 a period of three years from the date of such upward change,” said a press release by the  Ministry of Micro, Small & Medium Enterprises.
The decision has been taken after due deliberations with MSME stakeholders and is in line with the Aatma Nirbhar Bharat Abhiyan.
Further, the Ministry of MSME, Government of India, has allowed those registered MSMEs to continue to avail of non-tax benefits for three years, instead of one year, in case of upward graduation in their category and consequent reclassification.
Non-tax benefits include benefits of various schemes of the Government, including Public Procurement Policy and Delayed Payments.
The Prime Minister will also launch the Mission Schools of Excellence at Adalaj and lay the foundation stones of various development projects in Junagadh.
He will also inaugurate the India Urban Housing Conclave-2022 and dedicate and lay the foundation stones of multiple key projects in Rajkot.
He will dedicate more than 1,100 houses constructed under the Light House Project, a government release said. The PM will also inaugurate an exhibition of innovative construction practices in Rajkot.
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