In every tax, exemption is made to small businesses

In excise also, certain exemption is available to small manufacturers who are generally called SSI (Small Scale Industries)

This is done by Central Government by issue of Notification 8/2003 dt 1.3.2003


Meaning of SSI

These are those units whose aggregate value of clearances for home consumption does not exceed 400 lacs in the previous financial year

(Aggregate value of clearances for home consumption means

Domestic sales +

Export sales to Nepal and Bhutan)

In case a manufacturer has more than one factories, the combined turnover of all factories to be taken for calculation of SSI Limit

(As per Notification 8/2003 dt 1.3.2003)




How to Check 400 Lacs Limit?

All Domestic Sales


All Sales to Nepal Bhutan


All Exempted Sales


Clearances to EOU/FTZ.SEZ/EHTP/STP/UNO/International Organizationa

Goods Sent for Job work

Goods bearing Brand Name/Trade Name of others

Intermediate Goods (Goods Consumed in Production)


Note:-Goods Exempt under Any Notifications not covered)



Ask a doubt
CA Maninder Singh's photo - Co-founder, Teachoo

Made by

CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.