Nasscom Public Policy Highlights | Volume 6, Issue 7 | July 2024 | nasscom | The Official Community of Indian IT Industry

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Nasscom Public Policy Highlights | Volume 6, Issue 7 | July 2024

Vertika Misra

@vertika@nasscom.in

July 9, 2024

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nasscom Public Policy Monthly Mailer | Volume 6, Issue 7 | July 2024

in Focus

Karnataka Govt

Release of draft bill for social security of platform gig workers

On June 29th, the State Government of Karnataka published The Karnataka Platform Based Gig Workers (Social Security and Welfare) Bill 2024 for public consultation. While a closer examination of the bill is required, some of the immediate challenges with the bill are that it can create a parallel structure of social security law for platform gig workers (like, dual levy on aggregators, disclosure obligations) when the central law – CoSS aims to achieve the same end. Further, the bill defines gig workers not as an arrangement “outside of traditional employer and employee relationship” (unlike CoSS) which unsettles the conceptual and legal basis of gig work. It also imposes disproportionate and prescriptive obligations on aggregators like minimum notice period for termination and specific guidelines for design of template contracts with platform gig workers. These can create huge operational inflexibility for platforms.

While nasscom is engaging with the industry for its feedback,we are seeking an extension of the duration for public consultation (current duration is 10 days) for providing meaningful suggestions on the bill. For sharing inputs on the draft bill, kindly write to policy@nasscom.in.

GST Council

IT-BPM and eCommerce industry welcomes the EODB measures at the 53^rd Council Meeting

In the 53rd GST council meeting, the government has addressed some of the key issues highlighted by nasscom on behalf of the IT-BPM and ecommerce industry. Key positive outcomes include reduction in pre-deposit amount for filing appeals, clarification on valuation of import of services by a related person as well as corporate guarantee, reduction in rate of TCS for ecommerce industry, Clarification on place of supply of goods where delivery address and billing address are different, amongst others.


	Read More

We scheduled a meeting with members to provide an update on the key decisions of the Council. You may view the recording of the same here.

MOF

Union Budget 2024-25

Nasscom submitted a detailed memorandum of suggestions for the Union Budget 2024-25 to the MOF. Key suggestions:

1.	Improving the tax competitiveness under transfer pricing regime to boost India's IT services exports and improve ease of doing business.

2.	Study the impact of twelve years of implementation of the angel tax to suggest the way forward.

3.	Evaluate enabling direct listing in India of Indian-origin foreign incorporated start-ups which have India as one of their key business markets.

4.	Specific amendments under the Income Tax Act, 1961 to promote ease of doing business under corporate tax.

We participated in a pre-budget consultation meeting with the Hon'ble Finance Minister and her team to discuss our suggestions in detail.


	Read More

SUBMISSIONS AND REPRESENTATIONS

GST Council

Export Related Challenges of Data Hosting Providers

We submitted a whitepaper to GST officials outlining the background of operations of data hosting companies (along with a flowchart), the growth of the sector and the challenges being faced under GST laws in India. We have requested the government to clarify that data hosting services are not “intermediary services” and qualify as export of services.


	Read More

Chhattisgarh Govt

Chhattisgarh IT Policy

We provided feedback to Chattisgarh Government on the draft state IT policy. The feedback consisted of measures to promote ease of doing business, skilling, Engineering, Research & Development, regular engagement with stakeholders and annual review of the policy. For more information kindly write to policy@nasscom.in.

DIALOGUE & DISCUSSION

Digital India

Workshops on Key Aspects of the Digital Personal Data Protection Act

This workshop was organised by Digital India Corporation on June 6, 2024. At this workshop, Ashish spoke about the implications of the DPDP Act 2023 on Digital Governance, highlighting both enabling aspects and areas requiring safeguards. He emphasised on how the DPDPA supports digital governance through principles like "once-only" data collection and security obligations and noted concerns about broad exemptions for state functions and amendments to the Right to Information Act that may limit transparency.

MEITY

Report on regulation of Digital Competition

Nasscom participated at the government-industry joint stakeholder's meeting convened by MEITY (chaired by the Secretary) on June 20, 2024, to discuss the draft DCB. We conveyed our key position that the ex-ante law as recommended in the report, lacks justification, suffers from serious gaps and would be detrimental to India's digital ecosystem. Based on the industry feedback, MEITY is expected to convey its position on the DCB to MCA. The meeting was also attended by the MCA's Additional Secretary and CCI's Secretary. For more information, kindly write to: policy@nasscom.in.

MEITY

Power Issues related to DCs

Nasscom attended the stakeholder's consultation meeting convened by MEITY on June 14, 2024, to discuss power related issues of DCs. We focused on issues like need for dual grid connectivity to ensure uninterrupted power supply to DCs and applicability of industrial tariff rate as opposed to commercial tariff for EoDB. Nasscom is in the process of collecting inputs to make a representation to the MEITY. In case you have any inputs, please share with us at policy@nasscom.in.

NEW AND UPCOMING

SEBI

Call for Inputs: Feedback on harmonisation of SEBI regulations

SEBI released a consultation paper for facilitating ease of doing business and harmonisation of provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR regulations) and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations). Kindly write to policy@nasscom.in to share your inputs before July 12, 2024.

RBI

Call for Inputs: Public consultation to rationalise export and import regulations under FEMA

RBI recently released draft regulations and directions to rationalise export and import regulations under Foreign Exchange Management Act, 1999for public consultation. The proposed regulations are intended to promote ease of doing business, especially for small exporters and importers. Kindly write to policy@nasscom.in to share your inputs before August 22, 2024.

OTHER UPDATES

Telangana Government

Exemption to IT-BPM from S&E Act

Pursuant to nasscom's effort, the Government of Telangana has extended the exemption to the IT-BPM industry from the Telangana Shops and Establishments Act, 1988 for a duration of 4 years w.e.f May 30, 2024. This exemption is crucial for the IT-BPM industry because it ensures flexibility for the industry to tailor its working arrangements with operational needs and client requirements. Citing the position in Telangana as a useful precedent, nasscom is advocating a similar approach in other key states.

Karnataka Government

Exemption to IT-BPM from Standing Order

The Government of Karnataka has extended the exemption to the IT-BPM industry from the IESO Act. The exemption is for a duration of 5 years, till June 10, 2029, or till such time as the Industrial Relations Code, 2020 is implemented. Given that the IESO Act is incompatible with the nature and operations of the IT-BPM industry's working and imposes significant compliance burden, this exemption is welcome.

TRAI

Recommendations on Formulation of NBP

TRAI has issued recommendations on its Consultation Paper on “Inputs for formulation of National Broadcasting Policy-2024”. Nasscom in its feedback had highlighted the differences in broadcasting and OTT services and reiterated our position that if the Government wants to create a policy for OTTs, it should be dealt under a separate joint policy initiative by MeitY and MIB. TRAI recommendations are in line with our position - there is no onerous burden on the OTTs, and it highlights the need for collaboration between various stakeholders.

List of Acronyms

CoSS	Code on Social Security, 2020
DCB	Digital Competition Bill
DC	Data Centres
DPDPA	Digital Personal Data Protection Act
GCC	Global Capability Centre
GST	Goods and Services Tax

IESO Act	Industrial Employment (Standing Order) Act, 1946
IT	Information Technology
MEITY	Ministry of Electronics and Information Technology
MOF	Ministry of Finance
NBP	National Broadcasting Policy

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Vertika Misra

Director - Public Policy

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