in Focus FTP Release of FTP 2023 The new FTP has been released with effect from April 1, 2023. Major focus is placed on supporting export of goods and services via e-commerce. Several of nasscom's suggestions have been accepted, such as, holding awareness sessions on e-commerce exports under the niryat bandhu scheme in collaboration with the industry, establishment of e-commerce export hubs with shared last-mile facilities and strengthening India post to facilitate cross border e-commerce etc. Other focus areas in the FTP include increasing exports at the district level, one-time relief to exporters who have defaulted in achieving export obligation and streamlining provisions on export of restricted/prohibited software and technology. The Services Exports from India Scheme (SEIS) has been removed, to make India's FTP compliant with the World Trade Orgiansation's rules. Read More

REPRESENTATIONS MCA Adoption of accounting software As per the amendment of Companies Rules, a company using accounting software for maintaining its books of account needs to have specific features. We made a submission requesting clarity on various issues including definition of accounting software, details required as part of the audit trail and edit logs, requirements in case of transaction level data, consideration of human error, etc. Read More Punjab Government IT policy We provided feedback to Punjab Government on the draft IT policy. The feedback consisted of measures to promote ease of doing business, skilling, Engineering, Research & Development, reimbursement of state GST, regular engagement with stakeholders and annual review of the policy. For more information kindly write to tejasvi@nasscom.in or vertika@nasscom.in. MOF Mandatory e-filing of form 10F by non-resident taxpayers Nasscom pursued the matter of doing away with mandatory electronic filing of Form 10F for such NR taxpayers citing the problems faced by them. Based on our submission, MOF has extended the exemption from mandatory e-filing of form 10F for Non-Resident taxpayers who do not have a PAN and are not required to have PAN in India as per tax provisions. Earlier, such NR taxpayers were exempted till March 31, 2023. Read More CPCB Exemption of export-oriented units from EPR obligations We have requested CPCB to issue a clarification that export oriented units continue to be exempt from extended producer responsibility obligations. The ambiguity on EPR exemption for importing products packed in plastic material for rendering services to be exported is detrimental and can result in increase in cost on account of substituting the packaging and expensive administrative burden. Read More DOCA Review of the consumer protection (e-Commerce) rules, 2020 In continuation of the review of the Consumer Protection (Rules), 2020, we have reiterated our feedback that. After (1) rules should focus on consumer protection issues and avoid overlaps with other laws; (2) obligations should be proportionate to the risk and should consider the uniqueness of different e-commerce models; (3) rules should not prohibit or disincentivise legitimate business models; and (4) rules should be unambiguous. For more information, kindly write to garima@nasscom.in. CBIC Identification of products/equipment prescribed in tariff item 85176290 and 85176990 We have made a representation to CBIC requesting them to defer implementation of Circular No. 08/2023 which provides for identification of products/equipment prescribed in tariff item 85176290 and 85176990 by at least 6 months. This will enable the industry to adequately plan and effect changes in their internal system for smooth implementation of the Circular. Government should also hold consultations along with the industry to understand the challenges, convergence in technologies, etc. Read More

DIALOGUE & DISCUSSION EPFO Knowledge Session: Extension of March 2023 deadline w.r.t. EPS-95 Nasscom organised a knowledge session on EPS-95 on March 07, 2023. The session featured expert speakers who shared their insights on the issue. They also addressed various queries of members related to eligibility, implementation of a higher pension program, operational clarifications, etc. GSTN Implementation of e-commerce parity issue for online sellers We had organised a meeting with GSTN on March 21, 2023, wherein a demonstration of the proposed enrolment mechanism for unregistered sellers on GST portal was given. The purpose of the meeting was to discuss potential changes to the GST portal on enrolment of unregistered sellers in order for them to supply through e-commerce operators. Our suggestions were received positively by GSTN. For more information, kindly write to tejasvi@nasscom.in.

NEW & UPCOMING DPIIT Public consultation on patents Act Nasscom participated in a meeting (public consultation) organised by DPIIT on March 10, 2023 seeking inputs on Patents Act. The key focus areas include need for a reform of India's Pre-Grant Opposition system, reform in annual disclosure of working of patents (Form 27) and disclosure requirements regarding foreign applications under Section 8 and dis-proportionate consequences of non-compliance. Kindly share your inputs with us via mail to sudipto@nasscom.in or priyanshi@nasscom.in. RBI Delays in getting export documents processed by banks In response to the concerns raised by nasscom in December 2022, RBI is seeking details of the delays by the authorised dealer banks in processing export documents. Kindly write to garima@nasscom.in in case you are facing delays in getting softex form processed and reconciliation of inward remittances. DGFT Reviewing the definition of 'software' and 'technology' under the SCOMET list We are engaging with the industry on the need to modify the definition of ‘technology’ and/or ‘software’ under the WA list for a potential discussion at the WA. Kindly share your inputs via mail to priyanshi@nasscom.in or garima@nasscom.in.

OTHER UPDATES RBI Reconciliation of inward remittances In reference to RBI's Master Directions on Export of Goods and Services dated January 1, 2016, RBI has given feedback on reconciliation of inward remittances and updating information on export data processing and monitoring system. Read More DOT Bharat 6G Vision Statement DOT has released the 6G Vision document to explore the impact of 6G in India and to investigate how India can realise its mission of becoming a global leader in this space. As per the vision, 6G will play an important role in filling the gap in the provisioning of e-services for urban and rural populations, help in the achievement of the UN SDGs, and contribute tremendously towards improving the quality and opportunities of life. Open Letter AI - Developments around GPT4 The Future of Life Institute has proposed a pause in the development and training of AI tools that are powerful than GPT4, flagging the possibility of several future threats to society from the use of generative AI tools. In another development, the Italian Data Protection Authority has banned the deployment of ChatGPT in the country citing potential data protection concerns and has begun investigation into whether the model is GDPR compliant. These developments have increased focus and debate on the risks associated with large generative AI models and possible measures to deal with them. If you are an expert in this field and would like to discuss this with us, kindly write to asaggarwal@nasscom.in or sudipto@nasscom.in. MEITY Proposed Digital India Act On March 9, 2023, MEITY announced that the IT Act will be replaced by a new DIA. The Minister of State presented an overview of the initial views of MEITY on the possible scope and contents of the DIA (presentation here). The DIA's main aims include: (1) ensuring that the internet in India is "open, safe & trusted, and accountable" (2) protecting citizens' rights (3) accelerating the digitalisation of government (4) addressing emerging technologies. Parliament Competition Amendment Bill, 2023 The Bill has been passed by both the houses, the Lok Sabha and the Rajya Sabha. The Bill makes some significant amendments to the Competition Act, 2002 including, settlements and commitments mechanism, closer scrutiny of M&A (deal value threshold), greater enforcement powers by introducing penalty on global turnover and power to scrutinise hub and spoke model. Read More

List of Acronyms AI Artificial Intelligence CBIC Central Board of Indirect Taxes and Customs CPCB Central Pollution Control Board DGFT Directorate General of Foreign Trade DIA Digital India Act DOCA Department of Consumer Affairs DOT Department of Telecommunications DPIIT Department for Promotion of Industry and Internal Trade EPFO Employee Provident Fund Organisation EPS Employee Pension Scheme FTP Foreign Trade Policy GST Goods & Service Tax IT Information Technology MCA Ministry of Corporate Affairs MEITY Ministry of Electronics & Information Technology MOCI Ministry of Commerce and Industry MOF Ministry of Finance PAN Permanent Account Number RBI Reserve Bank of India SDG Sustainable Development Growth TRAI Telecom Regulatory Authority of India UN United Nations WA Wassenaar Arrangement

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