NASSCOM : Public Policy | Volume 4 | Issue 01

Flexible Hybrid Work Models in SEZ till end of 2023

The Ministry of Commerce and Industry (MOCI) has issued a notification on December 8, 2022, to enable IT-BPM units in Special Economic Zones (SEZs) to adopt a flexible hybrid work model for the next one year (till December 2023) based on their requirements. As per the notification, IT-BPM units can decide how many employees can work from home (WFH). There are also no requirements to submit a lists of employees or to seek approvals to implement WFH. This addresses two key concerns of the industry (1) difficulty in getting approvals when more than 50% of employees seek to WFH (2) differing interpretations of compliance obligations by local authorities across SEZs.

G20 Digital Economy Working Group

We, along with the NASSCOM Sector Skills Council, are working with MeitY, the Nodal Ministry for the G20 Digital Economy Working Group, towards formulating a strategy for creating a common framework to recognise digital skills across technologies and to meet the global demand for a digitally skilled workforce.

NITI Aayog: Discussion Paper on Facial Recognition Technology

We made a submission on the NITI Aayog's discussion paper on “responsible AI for all: adopting the framework - a use-case approach on Facial Recognition Technology (FRT)”. Our primary recommendation is to ensure that use-cases of FRT systems should be evaluated on a case-to-case basis, so that precautionary or risk mitigation measures are calibrated to specific risks and challenges. This was highlighted through discussions on implementation of use-cases in other countries.

Goods and Services Tax (GST): Suggestions on IT-BPM & e-commerce industries' issues

We submitted a detailed memorandum to the Department of Revenue and the GST Council with suggestions to address certain GST-related issues faced by the IT-BPM and e-commerce companies. These suggestions include input credit modernisation; taxability of import of free of cost software from related party, grouping of multiple registrations within group entities, amongst others. The implementation of these measures would significantly improve the ease of doing business by providing certainty to the industry.

SEBI: Consultation Paper on Buyback of Shares

In response to a consultation paper released by the Securities and Exchange Board of India (SEBI) on the buyback of shares, we requested SEBI to continue providing the option of buyback from the open market rather than completely phasing it out; allow companies to increase the aggregate size of buy-back (within the limits prescribed under the Companies Act of 2013 & SEBI Regulations and subject to approval of shareholders).

MOCI: Submission on Continuing Zero-rating GST Benefits for SEZ Units in Future Law

The MOCI is currently examining the proposed Development of Enterprises and Services Hub Bill, 2022 (DESH Bill). We made a submission to the MOCI requesting them to continue the existing provisions in the SEZ Act that provide for "zero-rated supply to SEZ units and developers" in the DESH Bill as well. This will provide certainty & relief for taxpayers.

RBI: Submission on Delays by Banks in Processing Export Documents

We wrote to the Reserve Bank of India (RBI) highlighting the issues faced by the industry due to delays by the authorised dealer bank in processing export documents including Softex forms and reconciliation of inward remittances. We requested RBI to prescribe a definite timeline for banks to process export documents and encourage them to establish digital systems for receiving export documents against inwards remittances.

DPIIT: Concerns with RBI's draft OEIF Guidelines for Start-ups & Small Exporters

We highlighted to Department for Promotion of Industry and Internal Trade (DPIIT), the challenges related to exclusion of exporters from RBI’s draft guidelines on the processing and settlement of small value export and import related payments facilitated by online export-import facilitators (OEIF guidelines). We requested the DPIIT to examine this with the RBI, as this can have a huge impact on small value services exports from India. For more information, kindly write to garima@nasscom.in.

Webinar & launch of booklet on the “Elements of an Effective Internal Compliance Programme for the Export of Dual-use Items”

The webinar focused on the internal compliance programs for the export of dual-use items. At the webinar, a booklet on 'Elements of an Effective Internal Compliance Programme for Export/Transfer of Dual-Use Items' was jointly launched by senior government officials from the Ministry of External Affairs (MEA), the Directorate General of Foreign Trade (DGFT), the Ministry of Electronics and Information Technology (MEITY) and the Central Board of Indirect Taxes and Customs (CBIC). The booklet can be accessed from here, while details on the discussions at the webinar can be found here.

Industry Roundtable on the Draft Digital Personal Data Protection Bill of 2022

On December 12, 2022, NASSCOM organised an industry roundtable discussion with industry representatives and key experts to receive feedback from the industry on the draft Digital Personal Data Protection Bill of 2022 that had been released by MEITY in November for public consultation. Several proposals in the Bill were discussed, including the exemptions, the concept of “deemed consent”, the proposed Data Protection Board, the approach to data breach reporting, the proposed regulation of transfers, the way the data protection principles have been reflected in the Bill, etc. The deadline set by MEITY for the submission of comments on the Bill is January 2, 2023.

DGFT: Facilitating e-Commerce Exports from India

In a meeting with DGFT, we offered the following suggestions to facilitate e-commerce exports from India: (1) expanding the scope of existing schemes under the foreign trade policy (FTP) to cover e-commerce exports, such as Market Access Initiative, Export Promotion Cells; (2) introducing new measures to facilitate e-commerce exports, such as e-Commerce Export Zones, import duty exemption for re-imported unsold goods, creating a digital trade export promotion fund; and (3) including services exports in the scope of RBI's draft Online Export Import Facilitators Guidelines.

Call for inputs: NHA on Operationalising UHI

On December 14, 2022, the National Health Authority (NHA) released a consultation paper (CP) on operationalising the Unified Health Interface (UHI), which is envisioned as a foundational layer of the Ayushman Bharat Digital Health Mission (ABDM) and seeks to use open protocols to enable interoperability in health services in India. The CP outlines the market rules that will govern the UHI Network paper. Comments are due to the NHA by January 23, 2023. Please share your feedback on the CP to sudipto@nasscom.in and garima@nasscom.in by January 4, 2023.

Call for inputs: OECD on Pillars 1 & 2

The Organisation for Economic Co-operation and Development (OECD) has been working to develop a consensus-based solution to address tax challenges arising out of digitalisation of the economy. For this, Pillar One provides taxing rights to market jurisdictions where there is an active and sustained participation of a business while Pillar Two is designed to ensure that large businesses pay at least 15% tax on income. In order to achieve consensus and seek inputs from stakeholders, OECD has released 4 consultation papers. We request you to share your feedback with tejasvi@nasscom.in before the due dates of the submission.

Call for Data: Pending Claims Under the Services Export Incentive Scheme (SEIS)

We have received feedback from the industry that certain claims under the SEIS have been pending for long with the DGFT. If you have any pending claims under the SEIS, kindly write to garima@nasscom.in along with the details of the year and amount of claim. We would be sharing this information with the DGFT for their consideration.

Call for Inputs: Proposed Amendments to the Information Technology (IT) Rules related to Online Gaming

On January 2, 2023, MEITY released proposed amendments to the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules) related to online gaming. The proposed amendments add certain due-diligence obligations to be observed by online gaming intermediaries and certain safeguards for directions issued by the government to restrict access to online content. Please share your feedback on the proposed amendments by writing to garima@nasscom.in and varun@nasscom.in by January 12, 2023.

MOCI: Introduction of the Jan Vishwas (Amendment of Provisions) Bill of 2022 ('Bill')

To promote the ease of doing business, this Bill seeks to decriminalise several minor offences and rationalise monetary penalties, across 42 existing statutes including the Payments and Settlement Systems Act; the Trade Marks Act; the Cable Television Networks (Regulation) Act; the Patents Act; & the Information Technology Act (IT Act). Under the IT Act in particular, we note that the Bill proposes the deletion of section 66A; the decriminalisation of offences on electronic signatures, the retention of information by intermediaries; the interception of traffic data, & the unauthorised disclosure of personal information. It also proposes to increase existing civil penalties. For e.g., the Bill proposes raising the penalty cap for violating directions from the Indian Computer Emergency Response Team to one crore rupees.

GST: Update on Scheme for Intra-state Supply of Goods

At its 48^th meeting, on December 17, 2022, the GST Council recommended that the scheme for allowing unregistered suppliers and composition taxpayers to make intra-state supply of goods through e-commerce operators without obtaining registration under GST may be implemented (subject to certain conditions) with effect from October 1, 2023. This is pursuant to the in-principle approvals granted in June 2022 and is in line with our recommendations made to the GST Policy Wing in this regard.

MEITY: Release of Applications for Appointments to Grievance Appellate Committees

On October 28, 2022 (see here), MEITY had updated the Information Technology (Intermediary Guidelines and Digital Media Ethics Code), introducing the concept of grievance appellate committees (GACs) to serve as an appeals mechanism vis-à-vis disputes between a user and an intermediary on grievances over the latter's services. In December, MEITY released a call for applications to these GACs (available here). As per this document, MEITY has invited applicants from industry, government and academia or policy research. The last date for receipt of applications is January 12, 2023.

MEITY: Allocation of Business vis-à-vis “Matters Relating to Online Gaming”

On December 23, 2022, the Cabinet Secretary amended the Government of India (Allocation of Business) Rules of 1961 (notification here) to clarify that the nodal ministries for (1) online gaming shall be MEITY & (2) for e-sports (as part of multi-sport events) shall be the Ministry of Youth Affairs and Sports. This comes after the release of a report by an inter-ministerial task force set up by MEITY on online gaming. It is expected this will afford some clarity for gaming start-ups via-a-vis the future of the regulation of online gaming. This is also an indication from the Government that e-sports can be a legitimate sporting event, which can potentially be seen as a positive signal for the growing ecosystem in India.

Ministry of Science and Technology: Release of National Geospatial Policy 2022

On December 28, 2022, the Union Cabinet approved the National Geospatial Policy of 2022 which sets out the policy approach going forward on the release and use of geospatial data in India. It envisages the establishment of a geospatial data infrastructure; the use of open standards and open data; the “democratisation of data” by treating topographic & geospatial data produced using public funds to be treated as a common good; the constitution of an apex body for the promotion of activities relating to the geospatial sector and to replace the National Spatial Data Committee; the idea of a national digital twin.

Standing Committee on Finance: Report on 'Anti-competitive Practices by Big Tech Companies'

This report was released on December 22, 2022 (available here). It identifies ten 'anti-competitive practices' in digital markets, including anti-steering; search and ranking preferencing; advertising policies; platform neutrality; deep discounting; etc. The committee has recommended, an ex-ante regulatory regime, like, the need for a framework on identification and regulation of 'systemically important digital intermediaries’; the introduction of a Digital Competition Act; and the strengthening of the Competition Commission of India. For more information, kindly write to sudipto@nasscom.in.

Advertise with us