MSME and Udyam Classification Checker — 2026

Classify an enterprise under current MSME limits

Classification result

Both investment and turnover conditions must fit within the same category.

Turnover used for classification

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Long amounts scroll sideways. Tab to the amount, then use the Left and Right arrow keys to read the full number.

Likely classification

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Category	Investment / Turnover ceiling
Micro	₹2.5 crore / ₹10 crore
Small	₹25 crore / ₹100 crore
Medium	₹125 crore / ₹500 crore

How This Is Calculated

MSME classification (micro, small, medium) under the current framework is based on a composite of investment in plant & machinery/equipment AND annual turnover — both criteria are checked together, and a business is classified into the higher category if it exceeds the threshold on either measure, not just one.

Frequently Asked Questions

Is MSME classification based only on turnover?

No — it's based on a composite of both investment in plant & machinery/equipment and annual turnover. A business exceeding the threshold on either measure moves into the next higher category (micro to small, or small to medium), even if the other measure stays within the lower limit.

Do I need Udyam registration to be classified as MSME?

This checker estimates a category; it does not create or amend an official Udyam record. Use the official Udyam portal for registration, updates and reclassification. Each MSME benefit or protection has its own eligibility conditions, including any registration requirement. A “Micro” result alone does not establish entitlement.

Keep a classification evidence file

Fix the reporting period. Record the financial year for the figures entered, the Udyam registration number if available, and the date of the official record consulted. Do not mix different periods merely to obtain a preferred category.
Reconcile the PAN-wide inputs. Include all GSTIN units listed against the same PAN. Support the prescribed investment figure with the applicable ITR records or the documented new-enterprise basis explained below; reconcile annual turnover to the relevant ITR/GST records. The checker does not perform this aggregation or value the assets for you.
Show the export adjustment. Retain total turnover including exports and a reconciliation of the export component already included in that total. The tool subtracts that component once; exports cannot exceed the total entered.
Check units and precision. Enter figures in crore. This tool accepts multiples of 0.01 crore (₹1 lakh) and rejects finer precision rather than rounding. Retain the underlying source values; do not round them merely to make an input pass. Use the official record and an appropriately precise assessment when the actual figures need finer units.
Retain the comparison. Keep a dated copy of the inputs, displayed calculation and export-turnover reconciliation alongside the official Udyam record checked. Record and investigate differences in period, aggregation or input basis instead of manually changing the category.

Compare the estimate with the official record

The displayed category is an estimate from the figures entered. It does not register an enterprise, amend its Udyam record or determine the effective date of an official reclassification.

Compare the calculation and its reporting-period basis with the relevant official Udyam record. If they differ, check PAN-wide totals, the prescribed investment basis, export adjustments, units and record updates before using a category in a business document.

Official registration status and eligibility for a particular benefit are separate questions. Retain the official record and assess the applicable scheme conditions; this calculator does not approve a benefit claim.

Methodology, assumptions and sources

Scope: Checks MSME (Micro, Small and Medium Enterprise) classification under the Udyam registration framework, based on investment in plant & machinery/equipment and annual turnover.

Calculation logic

Classification uses a composite criterion of both investment and turnover — a unit must satisfy the investment threshold AND the turnover threshold for its category (micro/small/medium) to retain that classification; if either the investment or turnover crosses into a higher band, the enterprise moves to the higher category, per the current composite-criteria rule.
Micro: investment up to the currently prescribed micro-threshold AND turnover up to the currently prescribed micro-turnover-threshold; Small and Medium follow their own respective, progressively higher investment and turnover threshold pairs.
Under paragraph 4 of S.O. 2119(E), investment is linked to previous years’ ITRs. For a new enterprise with no prior ITR, the promoter uses self-declaration and the purchase-invoice value of plant and machinery/equipment, whether new or second-hand, excluding GST. This relaxation ends after 31 March of the financial year in which the first ITR is filed. Land, buildings, furniture and fittings are outside the prescribed plant-and-machinery definition; specified statutory cost exclusions also apply. The checker takes the investment figure you supply and does not value assets or verify the underlying returns.

Inputs and assumptions

Investment and turnover thresholds for each category (micro/small/medium) follow the current Udyam classification notification — these thresholds were revised and unified for both manufacturing and service enterprises under the current Udyam framework (superseding the earlier separate manufacturing/service threshold structure).
This checker gives a snapshot against the figures entered; it does not determine the effective date of an official reclassification. Paragraph 8(5), as replaced by S.O. 4926(E) dated 18 October 2022, continues the non-tax benefits of the category held before an upward change for three years from that change. It does not freeze the old classification or create a general three-year extension of tax benefits or obligations. Reverse-graduation has its own rule in paragraph 8(6).

Exclusions and edge cases

Does not itself perform Udyam registration — this is a classification check only; actual registration/re-classification is completed on the Udyam Registration portal, which pulls PAN/GST-linked data automatically per current procedure.
Official registration status, reclassification dates and entitlement to a particular benefit require the Udyam record and the applicable scheme conditions. The three-year continuation under amended paragraph 8(5) concerns non-tax benefits; this calculator does not calculate a transition period or decide a benefit claim.

Sources

Scoped source check: 17 October 2026 — classification thresholds, aggregate input basis and non-tax benefit continuation. Results use the figures entered and do not establish official Udyam status.

Guides that use this calculator

Background, worked examples and the rules behind these numbers.