Overriding Clarification on Classification of Manufacture & Service Industries under Micro Small Medium Enterprises Act issued by MSME Ministry

Categorisation of activities under manufacture or service under the MSMED Act, 2006

This always remained as a moot point, while categorising under MSMED Act, which provides different limits (link) for manufacturing and servicing industries.

Now, the Ministry of Micro, Small & Medium Enterprises has given a CLARIFICATION in supersession of all other circulars that:

A)    Activities considered as manufacturing :

1. (i)                  Medical Equipment and Ayurvedic Product
2. (ii)                Composite unit of Bacon Processing and Piggery Farm (Piggary Farm without bacon processing shall not be classified either as manufacturing or as service enterprise because this is farming activity)
3. (iii)               Tobacco Processing
4. (iv)              Beedi/ Cigarette manufacturing and other tobacco products
5. (v)                Extraction of Agave Spirit from Agave juice (imported medicinal plant) extraction of Agave
6. (vi)              Manufacture of Bio-fertilizer

B)     Activities considered as Service :

1. (i)                  Sanitation Services (Hiring of Septic Tank Cleaner)
2. (ii)                Clinical Pathological Laboratories and scanning, MRI Tests
3. (iii)               Hospitals
4. (iv)              Agri – clinic and Agri – Business
5. (v)                Restaurants with Bar
6. (vi)              Canteens
7. (vii)             Motel industry

The activity “Bee Keeping” is a farming allied activity and therefore, would not be covered in either manufacturing or service activity.

Source: No.5(6)/2/2009-MSME POL dated 21/07/2009

As you know [MSMED]Small Scale Industry definition only under MSMED Act for IDRA too.

To understand all the notifications of industry, read Industries DIPP updates