New Quality Control Order (QCO) Amendments for MSMEs (Feb 2026)

On 12 February 2026 the Ministry of Commerce & Industry (DPIIT) issued a Gazette notification (S.O. 777(E)) amending several BIS Quality Control Orders (QCOs). These orders – legal rules under the Bureau of Indian Standards Act – require certain products to meet safety and quality standards. The government stated that the changes are “necessary or expedient in the public interest”. In practice, the amendments exempt qualified MSMEs from these QCO requirements, reducing their regulatory burden.

Exemptions for Udyam-registered MSMEs

Under the new rules, goods made by Micro and Small Enterprises (MSMEs) registered on the Udyam Portal (Government of India's official MSME registry) are exempted from the QCOs, if they meet all of the following conditions:

• Registered MSME: The business must be listed on the Udyam Portal (Ministry of MSME).
• Investment limit: Total investment in plant, machinery or equipment (original cost) is less than or equal to ₹1 crore.
• Turnover limit: Annual turnover for the previous financial year is less than or equal to ₹5 crore, certified by a Chartered Accountant.

If a Udyam-registered enterprise satisfies these criteria, nothing in the relevant QCOs will apply to goods or articles manufactured by that enterprise. In other words, it does not need to obtain BIS certification under those QCOs.

Products covered by the exemptions

The exemptions apply to eight specific product categories whose QCOs have been amended. In each case, goods made in India by eligible MSMEs will be exempt from the mandatory BIS standards. The affected categories are:

• Flame-producing lighters
• Potable water bottles
• Welding rods & electrodes
• Insulated flasks, bottles & containers (for domestic use)
• Electric ceiling-type fans
• Laboratory glassware
• Air coolers and air filters
• Furniture

For example, a small fan manufacturer registered on Udyam with investment less than or equal to ₹1 crore and turnover less than or equal to ₹5 crore will be exempt from the fan QCO. The same logic applies to manufacturers of bottles, lighters, furniture and other listed products.

Effective date

These amendments came into force immediately upon publication in the Official Gazette. Since the notification was published on 12 February 2026, the exemptions are effective from that date. Eligible MSMEs can rely on the new rules right away; they do not need to retroactively apply BIS marks to goods made on or after 12 February 2026.

Support for MSMEs and ease of doing business

This move is part of the government's efforts to support small businesses and streamline compliance. By carving out a clear exemption for genuine Micro and Small Enterprises, the government aims to reduce the burden of mandatory certification on tiny industries.

In practice, qualified MSMEs in the above sectors no longer need to undergo the time-consuming BIS testing and labeling process for these products. This should help manufacturers focus on production and growth, knowing the government is easing regulatory hurdles for them.

Conclusion

The Government's latest QCO amendment dated 12 February 2026 is a significant relief measure for Micro and Small Enterprises across multiple manufacturing sectors. By introducing a clear exemption for Udyam-registered MSMEs with:

• Investment in plant and machinery up to ₹1 crore, and
• Turnover up to ₹5 crore (previous financial year, Chartered Accountant certified)

the government has meaningfully reduced compliance pressure on genuinely small manufacturers. However, businesses must carefully evaluate their investment and turnover thresholds and ensure proper documentation, including Udyam registration and CA certification, to claim the exemption confidently.

This amendment reflects the Government's intent to balance product quality regulation with practical support for small enterprises, ensuring that compliance requirements do not hinder early-stage manufacturing growth.

Frequently Asked Questions (FAQ) – QCO Amendment for MSMEs

1. What is the latest QCO amendment issued in February 2026?

The Ministry of Commerce & Industry (DPIIT) issued a notification dated 12 February 2026 amending several existing Quality Control Orders (QCOs). The amendment provides an exemption to certain MSMEs from mandatory compliance under specified QCOs.

2. Who can claim exemption under the new QCO amendment?

The exemption applies to MSMEs registered under the Udyam Portal of the Ministry of Micro, Small and Medium Enterprises, provided they meet both of the following conditions:

• Investment in plant and machinery or equipment does not exceed ₹1 crore (original cost).
• Turnover does not exceed ₹5 crore in the previous financial year, certified by a Chartered Accountant.

If both conditions are satisfied, the applicable QCO will not apply to goods manufactured by such enterprises.

3. Is Udyam Registration mandatory to claim this exemption?

Yes. Only enterprises registered on the Udyam Portal are eligible. Without valid Udyam registration, the exemption cannot be claimed.

4. Does this exemption apply to all manufacturers?

No. This exemption applies only to eligible MSMEs that meet the investment and turnover limits. Medium and large manufacturers must continue to comply with the applicable QCO requirements and obtain mandatory BIS certification.

5. Which products are covered under this QCO amendment?

The exemption applies to the following product categories:

• Flame-producing lighters
• Potable water bottles
• Welding rods and electrodes
• Insulated flasks, bottles and containers (for domestic use)
• Electric ceiling type fans
• Laboratory glassware
• Air coolers and air filters
• Furniture

Only MSMEs manufacturing these products and meeting the criteria are eligible.

6. From when is this amendment effective?

The amendment came into force from the date of publication in the Official Gazette, i.e. 12 February 2026. The exemption is effective immediately from that date.

7. Do eligible MSMEs still need BIS certification?

If an MSME qualifies under the investment and turnover limits and is registered on the Udyam Portal, then BIS certification under the specified QCOs is not mandatory for those products. However, voluntary certification may still be considered for market credibility.

8. How will investment and turnover be verified?

Investment and turnover will be verified through proper documentation:

• Investment must be calculated based on the original cost of plant and machinery or equipment.
• Turnover must be certified by a Chartered Accountant for the previous financial year.

Proper records should be maintained in case of regulatory verification.

9. What happens if an MSME exceeds the ₹1 crore or ₹5 crore limit?

If an enterprise crosses either the investment or turnover threshold:

• The exemption will no longer apply.
• The manufacturer must comply with the applicable QCO.
• BIS certification will become mandatory under the respective order.

10. Why has the government introduced this exemption?

The government aims to:

• Support Micro and Small Enterprises
• Reduce regulatory burden
• Promote ease of doing business
• Encourage small-scale manufacturing growth

This amendment balances quality control objectives with practical relief for smaller manufacturers.