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Suggestions to Government of Karnataka on enabling the e-commerce sector
Suggestions to Government of Karnataka on enabling the e-commerce sector

April 14, 2022

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In April 2022, we submitted suggestions to the Government of Karnataka on addressing the challenges being faced by the e-commerce sector and undertaking measures to enable the growth of the sector. 

Some of our key suggestions include:

  1. Bringing parity between online and offline sellers in GST registration and compliances by doing away with the mandatory registration of small sellers selling online.
  2. Allowing small and mid-size sellers to opt for composition scheme while supplying goods through e-commerce platforms.
  3. Allowing sellers who store goods in warehouses of e-commerce operators across states, to obtain a single Principal place of business registration in the home state of the seller.
  4. Streamline GST related compliances by waiving off duplicate compliances, shift compliance responsibility on e-commerce operator, building safeguards in periodical reportings, evaluate the possibility of centralised reporting by e-commerce operator.
  5. Recignising digital invoices on hand-held devices as sufficient compliance for business to consumer (B2C) transactions.
  6. Creating necessary infrastructure for e-commerce operations, such as, warehouses, sorting centres, last mile delivery infrastructure, information and communications infrastructure.
  7. Enabling the growth of e-commerce exports by dedicated e-Commerce Export Zones, establishing dedicated customs clearance lanes for e-commerce exports, including ‘brand building’ support to individual exporters through the existing Market Access Initiative scheme, enabling single window clearance system and creating awareness among MSMEs on e-commerce exports.
  8.   Giving incentives to enable MSMEs to digitise and sell online, such as, tax incentives for setting up warehouses and data centre facilities, incentives to offset digital marketing and branding costs etc.
  9. Ensuring a proactive role by State governments for wider adoption of e-commerce by leveraging the one district one product program, drivign partnerships with industry to onboard more sellers to the e-commerce ecosystem, training and upskilling sellers to sell online, implementing conducive labour policies like hiring contract labour, allowing women to work at any time of the day etc.
  10. Ensuring effective consumer protection in e-comemrce without prohibiting or penalising legitimate e-comemrce business models.
  11. Creating stability in the FDI policy, to continue seeing the positive impac tin terms of the growth of marketplace-based e-commerce and more onboarding of MSMEs/small retailers onto the online commerce. Frequent changes (as have been seen in the past) are bound to create uncertainty in the policy environment thus impacting investments, business decisions and as such the overall e-commerce ecosystem. Therefore, any developments that may lead to such disruptions should be avoided.

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Garima Prakash
Manager, Public Policy and Government Affairs

Reach out to me for all things policy about e-commerce, international trade, export controls, start-ups and fintech

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