MSME Limits Revised from 1 April 2025

As proposed by the Union Budget 2025-26; Starting 1 April 2025, the Government of India has revised the investment and turnover limits for MSME classification. In this blog, we’ll cover the revised threshold limitsfor classification of MSME , how it affects benefits, eligibility, and compliance. why MSME registration remains a smart move for entrepreneurs.

What is MSME Registration?

MSME stands for Micro, Small, and Medium Enterprises, and registration under the MSMED Act, 2006 gives official recognition to eligible businesses.
 Registration is done via the Udyam Registration portal, and once approved, your business receives a Udyam Registration Number (URN).

What Are the Revised MSME Limits from 1^st April 2025?

As per the government's latest update, the investment and turnover thresholds for classification have been increased:

These revised limits, effective 1^st April 2025, aim to widen the scope of support and encourage more businesses to avail of MSME benefits.

Is MSME Registration Mandatory?

MSME registration is not mandatory. However, registering your business brings a host of advantages — financial, legal, and operational. While you can operate without it, registered MSMEs enjoy priority access to various government schemes and protections.

Why You Should Still Register as an MSME

Even though registration isn’t compulsory, here are strong reasons why your business should consider it:

Access to Government Schemes

1. CGTMSE – Collateral-free credit guarantee
2. PMEGP – Subsidized loans for new businesses
3. MUDRA Loans – Easy micro-finance options
4. Interest Subvention Scheme – 2% relief on loans
5. ZED Certification – Quality and sustainability incentives
6. Stand-Up India Scheme – Loans for SC/ST and women entrepreneurs
    

Easier Loans & Lower Interest Rates

MSME-registered businesses are preferred for collateral-free loans and receive better lending terms from banks.

Protection from Payment Delays

Under the MSMED Act, buyers must clear dues within 45 days. Delay beyond this entitles you to interest on the overdue amount.

Tax & Licensing Benefits

State-wise benefits may include tax exemptions, trademark fee reductions, and priority in license approvals.

Regulatory Compliance After MSME Changes

With the revised MSME limits announced in Budget 2025-26, businesses must ensure timely compliance across the following key areas:

Income Tax Compliance

1. Section 43B(h): Any payment due to an MSME supplier must be made within 45 days (if terms agreed in writing) or 15 days (if no written agreement), else it will be disallowed as an expense under Income Tax Act.
2. Disallowed expenses will increase your taxable income and tax liability for that financial year.

Vendor Compliance

1. Businesses must identify and record vendors registered as MSMEs.
2. Revisit your vendor contracts and payment cycles to align with MSME rules and avoid last-minute defaults.
3. Maintain proof of MSME registration (Udyam) for all such vendors.
4. Update vendor master data to track payment timelines and avoid defaults.

Payment Settlement Under 45 Days

1. Ensure all MSME dues are settled within the prescribed time frame.
2. Delays can lead to interest liability, legal action, and reputational risk.
3. Recommended: Automate alerts/reminders for MSME dues.

Internal Control Systems

1. Implement an internal tracking system for:
   • MSME vendor identification
   • Due date reminders
   • Approval workflows
   • Payment follow-ups
2. Internal audits should include a compliance check for MSME payments and documentation.

How to Register Under MSME (Udyam)?

You can register effortlessly through our platform:
 https://egstin.com

We handle the entire process — from documentation to expert verification — so you can focus on your business.

Follow These Simple Steps:

1. Visit Our Website
    Go to https://egstin.com and select “MSME Registration”.
   
    
2. Fill the Online Form
    Enter your business details securely.
   
    
3. Upload Documents
    Aadhar, PAN, and business information.
   
    
4. Expert Verification
    We review and validate your submission.
   
    
5. Get MSME Certificate
    Receive your official Udyam Registration Certificate upon approval.
   
    

Conclusion

With the MSME limits revised from 1 April 2025, more businesses can now qualify for government support. While MSME registration is not mandatory, it offers significant strategic advantages — from financial aid to legal protection.

Don’t miss out on the benefits.
Register your MSME today with EGSTIN Global Consulting and build a secure future for your enterprise.