Page 77 - ELT_1st July 2020_Vol 373_Part 1

2020 ] NOTIFICATIONS N13

of the Micro, Small and Medium Enterprises Development Act, 2006, (27 of 2006),
hereinafter referred to as the said Act, and in supersession of the notifications of
the Government of India in the Ministry of Micro, Small and Medium Enterpris-
es number S.O. 1702(E), dated the 1st June, 2020, S.O. 2052(E), dated the 30th
June, 2017, S.O. 3322(E), dated the 1st November, 2013 and S.O. 1722(E), dated
the 5th October, 2006, published in the Gazette of India, Extraordinary, Part II,
Section 3, Sub-Section (ii), except as respects things done or omitted to be done
before such supersession, the Central Government, after obtaining the recom-
mendations of the Advisory Committee in this behalf, hereby notifies certain cri-
teria for classifying the enterprises as micro, small and medium enterprises and
specifies the form and procedure for filing the memorandum (hereafter in this
notification to be known as “Udyam Registration”), with effect from the 1st day
of July, 2020, namely :-
1. Classification of enterprises. - An enterprise shall be classified as a
micro, small or medium enterprise on the basis of the following criteria,
namely :-
(i) a micro enterprise, where the investment in plant and machin-
ery or equipment does not exceed one crore rupees and turnover does
not exceed five crore rupees;
(ii) a small enterprise, where the investment in plant and machin-
ery or equipment does not exceed ten crore rupees and turnover does
not exceed fifty crore rupees; and
(iii) a medium enterprise, where the investment in plant and ma-
chinery or equipment does not exceed fifty crore rupees and turnover
does not exceed two hundred and fifty crore rupees.
2. Becoming a micro, small or medium enterprise. - (1) Any person
who intends to establish a micro, small or medium enterprise may file Udyam
Registration online in the Udyam Registration portal, based on self-declaration
with no requirement to upload documents, papers, certificates or proof.
(2) On registration, an enterprise (referred to as “Udyam” in the
Udyam Registration portal) will be assigned a permanent identity number to be
known as “Udyam Registration Number”.
(3) An e-certificate, namely, “Udyam Registration Certificate” shall be
issued on completion of the registration process.
3. Composite criteria of investment and turnover for classification. -
(1) A composite criterion of investment and turnover shall apply for classifica-
tion of an enterprise as micro, small or medium.
(2) If an enterprise crosses the ceiling limits specified for its present cat-
egory in either of the two criteria of investment or turnover, it will cease to exist
in that category and be placed in the next higher category but no enterprise shall
be placed in the lower category unless it goes below the ceiling limits specified
for its present category in both the criteria of investment as well as turnover.
(3) All units with Goods and Services Tax Identification Number
(GSTIN) listed against the same Permanent Account Number (PAN) shall be col-
lectively treated as one enterprise and the turnover and investment figures for all
of such entities shall be seen together and only the aggregate values will be con-
sidered for deciding the category as micro, small or medium enterprise.

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