Eight Quality Control Orders (QCOs) Get a Uniform MSME Exemption
On 12 February 2026, the Ministry of Commerce and Industry issued gazette notification S.O. 777(E) under Section 16 of the BIS Act, 2016. Each of the eight amended QCOs already…
What changed and why
On 12 February 2026, the Ministry of Commerce and Industry issued gazette notification S.O. 777(E) under Section 16 of the BIS Act, 2016. Each of the eight amended QCOs already carried some version of an MSME exemption but the language was inconsistent across orders and the financial thresholds varied. This notification aligns all eight to a single, uniform standard.
The eight amended QCOs are:
- Flame-Producing Lighters (Quality Control) Order, 2023
- Potable Water Bottles (Quality Control) Order, 2024
- Welding Rods and Electrodes (Quality Control) Order, 2023
- Insulated Flask, Bottles and Containers for Domestic Use (Quality Control) Order, 2024
- Electric Ceiling Type Fans (Quality Control) Order, 2023
- Laboratory Glassware (Quality Control) Order, 2023
- Air Cooler and Air Filters (Quality Control) Order, 2025
- Furniture (Quality Control) Order, 2025
Who qualifies
The exemption is available to domestic manufacturers, and not to importers or traders, who meet all three of the following conditions simultaneously:
- Registered on the Udyam Portal
- Investment in plant and machinery or equipment (at original cost) does not exceed ₹1 crore
- Turnover for the immediately preceding financial year does not exceed ₹5 crore, as certified by a Chartered Accountant
Miss any one of these three conditions and the exemption does not apply. There is no partial exemption.
Two documents. Both mandatory.
The exemption is not a self-declaration. Before relying on it or before your buyer relies on your claim of it, two documents must be in place:
- A current Udyam registration certificate lapsed or unrenewed registrations do not qualify.
- A Chartered Accountant certificate confirming that turnover for the immediately preceding financial year did not exceed ₹5 crore. A certificate from the wrong financial year does not satisfy this requirement.
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This news update is for guidance only. Verify with a qualified compliance advisor before acting.