Policy Advocacy
NASSCOM’s suggestions to address the KYC challenges faced by Prepaid Payment Instruments (PPIs)
Context The fintech industry continues to grapple with challenges around e-KYC. The recent circular from Ministry of Finance, dated May 9, 2019, has been much appreciated by the industry. However, the same has been rendered ineffective due to certain requirements in the circular and a lack of common understanding between the regulators and the Unique Identification Authority of India (UIDAI) with respect to the same. NASSCOM has written to different government departments/ministries such as the Department of Revenue, UIDAI, NITI Aayog, Ministry of Electronics & Information Technology (MEITY) and the Reserve Bank of India (RBI) with regard to certain challenges that the PPI industry is facing, pertaining to KYC verification process. We have also highlighted other issues pertaining to e-...
Bombay High Court: Dream11 is a game of skill, not chance; GST inapplicable on pooled amounts
Facts of the Case: A Criminal Public Interest Litigation (“PIL”) was filed against Dream11, a fantasy sports platform based in India that allows users to play fantasy cricket, hockey, football, kabaddi and basketball. The PIL alleged that Dream11 was carrying out illegal operations of gambling/betting/wagering in the guise of Online Fantasy Sports Gaming (“OFSG”) and hence should be penalized under the Public Gambling Act, 1867 (“Act”). The PIL also alleged that Dream11 was in violation of the Central Goods and Service Tax Act, 2017 (“CGST Act”) read with Rule 31A of Central Goods and Service Tax Rules, 2018 (“CGST Rules”) Rule 31A of the CGST Rules determines the value of supply for the calculation of GST in the case of lottery, betting, gambling and horse racing. As per this rule, the va...
Policy Update: Launch of Complaint Management System by RBI
08.07.2019 Context In a move aimed at improving its grievance redressal process, the Reserve Bank of India (RBI) launched a Complaint Management System (CMS) portal on 24 June. The portal acts as a single window for lodging complaints against any RBI regulated entity, such as commercial banks, urban co-operative banks, non-banking financial companies (NBFCs), etc. All complaints lodged on the CMS is directed to the appropriate office of the ombudsman/regional office of the RBI. Key highlights Single window for online filing of complaints against any RBI regulated entity, including banks and NBFCs. CMS has self-help material (in video format) to guide the users of the portal; videos on safe banking practices; and on the regulatory initiatives of RBI. It provides features such as acknowledge...
Highlights of Union Budget 2019
Union Budget 2019 Highlights Fiscal deficit – The budget leans on curbing the increasing fiscal deficit.1 It retains the fiscal deficit target for 2020-21 at an ambitious 3% of the GDP. This indicates a focus on growth through consolidating and revamping existing programs and improving ease of doing business. USD 5 Trillion Economy – Short on details: The Finance Minister has laid out a vision that focusses on Infrastructure, Start-ups and MSMES, Innovation and Research, Education and Skilling and adoption of Digital Payments. These are some of the right ingredients, however, the budget is short on specific measures. – Challenging target: India is today a USD 2.71 trillion economy.2 The Finance Minister expects us to cross the 3 trillion dollar mark in 2019-20. This shoul...
Government of Telangana Mandates Registration of Internal Complaints Committee (ICC) setup under POSH Act
The Department of Women Development and Child Welfare of Government of Telangana has recently launched a Web-Portal to provide a single window access to women employees to register their complaint against Sexual Harassment at Workplace. The POSH (Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, requires establishments with more than or equal to 10 employees should constitute Internal Complaints Committee (ICC) for resolving sexual harassment complaints at work place. As per the public notice issued by Telangana Govt, each employer is required to register and furnish details of their Internal Complaints Committee(ICC) on the portal The deadline for registration is 15th July 2019, failure to comply with this requirement may attract a penalty of Rs....
Policy Brief: Highlights of the U. K. Sinha led expert committee report on Micro, Small and Medium Enterprises
Highlights of the U. K. Sinha led expert committee report on Micro, Small and Medium Enterprises 03.07.2019 Context In January, the Reserve Bank of India constituted an eight-member expert committee on micro, small and medium enterprises (MSMEs) headed by former SEBI chairman U.K. Sinha to undertake a comprehensive review of the sector and to propose long-term solutions for its economic and financial sustainability. The expert panel, which was asked to study the problems faced by MSMEs, submitted its suggestions to RBI Governor Shaktikanta Das last month. The committee has looked into areas of capacity building, policy changes and financing needs to unlock the potential of this sector, it said in the report to RBI. Other members of the panel are Ram Mohan Mishra, Additional Secretary, Deve...
Masterclass on Intellectual Property – June 26, Bangalore
On 26th June, Nasscom organised an intellectual property (IP) awareness workshop in Bangalore for software product companies (including start-ups), aimed at covering the following: What is IP? Types of intellectual property rights (IPRs). What are the benefits of protecting IP? How to identify IP assets- what can be protected? Software patenting in India: How to protect computer related inventions in India (products / services) How to transfer IP / license IP. Ways to commercialise IP Trademark protection for IP The resource persons for the workshop were Sudeshna Banerjee and Naveen Suriya, Partners at the boutique IP law firm, K&S Partners. The workshop saw close to 20 participants from various tech companies. The first part of the workshop was taken by Naveen and focused on the basic...
Nasscom’s Submission on SEBI’s Consultation Paper on Shares with Differential Voting Rights
On 20th March, SEBI released a Consultation Paper on Issuance of shares with Differential Voting Rights, and invited public comments on the Consultation Paper by 20th April. The Consultation Paper recognises that the issue of shares with differential voting rights (or dual class shares) is relevant for tech companies, especially start-ups. Nasscom made the following submission to SEBI on the Consultation Paper: I. Background In India, the Companies Act, 1956 was amended in 2000 to allow issuance of shares with differential rights under Section 86.[1] In June 2009, the Securities and Exchange Board of India (SEBI) prohibited issue of shares with ’superior voting rights’ by listed companies, in order to “avoid the possible misuse by the persons in control to the detriment of public sharehold...
GST Circular on treatment of post-sale discounts
We wish to apprise you on a recent circular issued by Central Board of Indirect Taxes and Customs (“CBIC”) providing clarification on treatment of various post-sale discounts under GST vide Circular no. 105/ 24/ 2019 – GST (“new circular”). NASSCOM had participated in the Industry Consultation called for by CBIC in the month of November 2018 and had shared a detailed submission on sales promotion schemes. This Circular is in continuation to Circular no. No. 92/11/2019-GST dated March 07, 2019 (“earlier circular”) issued which had clarified that commercial credit notes may be issued without GST adjustments. To recap, the earlier circular had clarified that issuance of commercial credit notes would not impact credit availed in the hands of the “supplier”. After various representations filed...
Exemption from furnishing of Annual Return / Reconciliation Statement for suppliers of OIDAR
Central Board of Indirect Taxes and Customs (CBIC) recently issued Notification No.30 /2019 – Central Tax dated June 28, 2019 clarifying that furnishing of Annual Return / Reconciliation Statement in form GSTR 9 and GSTR 9C is not required to be filed for suppliers of Online Information Database Access and Retrieval Services (“OIDAR services”). Copy of the notification is attached for your reference.
