NASSCOM : Public Policy | Volume 2 | Issue 9

Government liberalises Drone Rules

On August 26, 2021, the Ministry of Civil Aviation notified the much-awaited Drone Rules, 2021. In line with NASSCOM's recommendations, the rules liberalise the operation of drones in India for both commercial and non-commercial purposes. These rules are likely to enable start-ups to implement their plans and open-up many use cases. Implementation of 'No Permission No Take-Off' has been postponed and a lead time will be provided when this is planned to be operationalised.

On August 27, NASSCOM conducted a workshop with drone start-ups to receive feedback on the Drone Rules. The feedback has been positive, and the industry highlighted that the rules are now at par with global policies on drones and that the emphasis now should shift towards ensuring smooth implementation and identification of other enablers for the drone ecosystem.

Department of Commerce: Renewed push for enabling long-term hybrid work model in SEZs and easing other operational issues

We submitted a representation to the Department of Commerce, Ministry of Commerce and Industry (MoCI), reiterating several operational and policy issues being faced by the Information Technology (IT) - Business process Management (BPM) companies operating in Special Economic Zones (SEZs) related to, enabling long-term work from home, Domestic Tariff Area billing, endorsement of invoices and
Instruction 95 that restricts duty benefits to SEZ units for setting up facilities such as creche, canteen etc. In addition, we recommended simplifying onerous processes that exist today.

Unified Health Interface: Industry feedback on areas critical for success

NASSCOM, along with Data Security Council of India, made a submission to the National Health Authority, highlighting the views of stakeholders on the Unified Health Interface (UHI). Our feedback covered UHI's possible impact on the quality of services provided by End User Applications, innovation by Health Service Providers (HSPs) and the level of competition in the market, among others. Given that wider adoption of Health Information Systems by HSPs is a necessity for the success of UHI, we also suggested that government should provide some incentives for wider adoption.

GSTN Consultation Committee: Suggestions to ease and streamline GSTN functionalities

Issues faced by the industry in filing Goods and Services Tax (GST) returns and other technical glitches were submitted to the Consultation Committee of Goods and Services Tax Network (GSTN), ahead of their third meeting. Our suggestions included removing restrictions on the number of times an amendment can be made in Business to Consumer category in GSTR-1, auto-generating GSTR-1 and allowing GSTR-1 to be downloaded in spreadsheet format from GSTN portal.

Labour Reforms: Feedback on Draft Code on Wages (Rajasthan) Rules, 2021

We made a submission to the Government of Rajasthan on the draft Code on Wages (Rajasthan) Rules, 2021. We proposed changes in the manner of calculating minimum wages, need to align working hours with the Rajasthan Shops and Establishment law and removal of certain details such as Aadhaar number, father’s name etc. from the wage slips. For more information, kindly contact deepak@nasscom.in.

Directorate General of Foreign Trade: Suggestions for the upcoming Foreign Trade Policy

The Foreign Trade Policy is due to be notified by the Directorate General of Foreign Trade (DGFT) with effect from October 1, 2021. Our suggestions cover both operational and policy issues, including, industry's requirement for the extension of Services Exports from India Scheme, inclusion of specific benefits for the e-commerce and digital trade sector, revamping some of the existing benefits to include the needs of digital services exporters etc. For more information, kindly contact garima@nasscom.in.

Public procurement: Enabling alternate mechanisms for determination of local value addition

We are engaged with the Ministry of Electronics and Information Technology (MEITY) and Department of Industry and Internal Trade (DPIIT) to enable a solution to the issue of mandated local value addition in public procurement for software products and Cloud Service Providers (CSPs). We have suggested that an alternate mechanism to calculate local value addition for software products be adopted and requested that all empaneled CSPs be treated as local suppliers, as they deliver services using resources in India.

MoCI: Interaction with Minister on Boosting Service Exports

NASSCOM participated in an industry interaction with the Hon'ble Minister of Commerce and Industry on August 23, 2021, to discuss industry's suggestions on boosting services exports. Also in attendance were the Hon'ble Minister of State for Commerce and Industry, the Secretary, senior officials from the DGFT, industry associations and industry leaders. NASSCOM's suggestions included protecting exports from GST levy due to incorrect classification as intermediary, supporting small value services exporters and including benefits for e-commerce exporters. For more information, kindly contact garima@nasscom.in.

Industry Consultation on NASSCOM Pre-Budget Memorandum 2022-23

We are preparing a Pre-Budget Memorandum 2022-23, based on the feedback received from the industry. Virtual meetings are being planned to discuss the proposed recommendations with the industry. For more information, kindly contact tejasvi@nasscom.in and jayakumar@nasscom.in.

Consultation Paper on the Need for Streamlining Multi-State Labour Compliances

NASSCOM is finalising a consultation paper to discuss some of the challenges being faced by entities with multistate operations due to variations in Shops and Establishments laws at the State level. The paper will also cover legal and compliance challenges that arise out of conflicting or overlapping provisions between Central and State labour legislations. For more information, kindly contact deepak@nasscom.in.

Policy Paper on the regulatory framework for Hosted Contact Centre Services

NASSCOM is finalising a policy paper to discuss the regulatory uncertainties related to Hosted Contact Centre Services in India. The paper will also provide an overview of how such services are governed under various other jurisdictions. This will form the basis for our advocacy with the Government on this issue. For more information, kindly contact deepak@nasscom.in.

Industry Consultation on India-UK Data Adequacy

NASSCOM, along with UK India Business Council (UKIBC) and TechUK, is planning to conduct a consultation to discuss the EU/UK – India Data transfer regime, with the objective of finalising a joint position paper of the tech industry in India and UK on measures to enable cross-border data flows while ensuring appropriate data protection. The position paper should help in building specific work streams to inform policy developments in India and UK. Details of the meeting will be published in due course of time. For more information, kindly contact garima@nasscom.in and apurva@nasscom.in.

Call for Inputs: UK ICO's consultations on international data transfers

The UK's Information Commissioner's Office (ICO) is seeking suggestions on the draft International Data Transfer Agreement and guidance on international transfers, which will replace their Standard Contractual Clauses (SCCs). NASSCOM is planning to submit suggestions to the UK ICO which will help them understand the impact of UK's proposed approaches to international data transfers on the Indian industry. For more information kindly contact apurva@nasscom.in.

NASSCOM's Study on Implications of Schrems II on EU-India Data Transfers

NASSCOM published a report on the "Implications of Schrems II on EU-India Data Transfer". The report analyses 273 Indian laws and regulations across various sectors to offer practical guidance on cross-border data transfers in the context of the Court of Justice of the European Union's decision in Schrems II, European Board of Data Protection's (EBDP) Guidance on European Essential Guarantees and the revised SCCs adopted by the European Commission. As per EBDP's essential guarantees,the report indicates that the Indian existing laws on surveillance fare better than the US surveillance laws in granting government the access to people's data. In the context of the revised SCCs, the report highlights specific and potential areas of concerns in the existing Indian laws and the upcoming data protection law vis-a-vis the adequacy requirement in the EU General Data Protection Regulation.

NITI Aayog's approach paper on Operationalising Principles for Responsible AI

Building on the two working documents on Responsible Artificial Intelligence (AI) published earlier, NITI Aayog has released an approach paper on Operationalising Principles for Responsible AI. The paper identifies actions that the stakeholders - governments, private sector and research institutions - must take to drive responsible AI, such as, focus on designing ideal regulatory and policy interventions, creating awareness, accessibility and capacity building, and facilitating precise procurement strategies. It also recommends that the private sector and research institutions should incentivise ethics by design, create frameworks for compliance with relevant AI standards and guidelines, and promote responsible AI practices in research. The paper is available here.

Export Control: New portal for SCOMET Authorisation Applications

On August 5, 2021, the DGFT introduced a new online portal for filing SCOMET authorisation applications electronically. It enables applicants to file new applications, submit amendments applications or apply for re-validation of the export authorisation. The portal can be accessed via this link. This is a positive step towards creating a seamless digital mechanism for export authorisations. For more information, kindly contact garima@nasscom.in.

South Asia: regulatory developments on data protection, recommendation algorithms and in-app purchases

Globally, the regulatory landscape on digital and data economy has been abuzz with new developments. These include the new data protection law in China effective from November 1, 2021, the proposed regulations in China on recommendation algorithms and the draft law in South Korea to regulate mobile application store providers' in-app billing policies. NASSCOM's policy team is tracking and evaluating the developments closely. For more information, kindly contact policy@nasscom.in.

GST: Andhra Pradesh AAR | Marketing consultancy service to foreign enterprise is intermediary services

The Andhra Pradesh Advance Ruling Authority (AAR) held that marketing consultancy service provided to a foreign entity shall be considered as an 'intermediary' service and not as an export of service, and accordingly will be liable to payment of GST. Further, the place of supply in case of intermediary services shall be as provided in section 13(8) of the GST Act, i.e., inside India.

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