E-commerce companies asked to submit their concerns on draft policy

Last Updated at: May 20, 2020
2199
E-commerce companies asked to submit their concerns on draft policy
E-commerce companies asked to submit their concerns on draft policy

There is a huge space for the E-commerce industry to grow in the Indian market. With over $600 billion worth in the retail market, India has only 5% of E-commerce companies in it. Even though India’s smartphone usage has rocketed high these past few years, the habit of purchasing online hasn’t increased dramatically among the citizens. There might be different reasons for the delayed adaption of online shopping but E-commerce can be penetrated better with much better policies and reforms offered to the operators.

E-Commerce Draft Policy

The 42-page e-commerce draft policy was released in February 2019 and addresses issues of the e-commerce ecosystem – data, infrastructure, marketplace, regulatory issues, digital economy, and export promotion. It stated the creation of a regulatory framework for cross border data flow and data collection through various channels like social media, e-commerce platforms, and search engines. The policy stated that any business that collects sensitive data from users in India and stores them abroad shall not make the data available for any business and foreign government without the consent of the customer and Indian authorities.

Get Your Company Registered

Submission of Concerns over E-commerce Policy Draft

Following the government’s release of draft e-commerce policy, which proposes setting up of a technological framework for regulating cross-border data flow, the government has asked the retailers to submit their concerns on the draft within 10 days.

The current Commerce and Industry Minister met on 17 June 2019 with many industry stakeholders and government officials from RBI and the Ministry of External Affairs. The meeting was held in four cohorts and the discussion was about opportunities for India in the digital economy, e-commerce’s value addition to GDP, data flow concerning privacy, security, safety, ownership and sharing of data and cross border flow of data.

According to media reports, the ministry in its statement said that e-commerce industry representatives flagged their concerns about the draft and felt it was not consultative. It further added that the Commerce Minister assured that every concern would be addressed and requested the representatives to send their concerns in writing to the Department for Promotion of Industry and Internal Trade (DPIIT) within 10 days.

Also, the companies raised their concern over data storage and data processing guidelines. To which the Ministry of Electronics and Information assured to consider their concerns while formulating the Data Protection Bill.

E-commerce Policy 2020

The government is expected to bring an updated E-commerce Policy in 2020. Though the timeline hasn’t been confirmed yet, everyone is looking forward to the newer policies. 

The policy draft 2019 disallows collection and storage of public’s sensitive data locally but to be stored abroad when shared with any third party. This is imposed even when the customer has shared their consent with sharing and storing the data locally.

E-commerce regulations include several domains like retail, information technology, consumers, payments etc. Hence many believe that localizing the customer data will help a lot of Indian startups to bring up more local innovation. The Department for Promotion of Industry and Internal Trade (DPIIT) also believes in the localization of data for the betterment of innovation and accessibility. These thoughts were shared after the policy draft 2019 revelation.

Many ministries are trying to manage these circumstances. They are working on bringing in their own E-commerce rules, especially the IT and the consumer affairs ministry. The IT Ministry is working on non-personal data regulations. The consumer affairs ministry is working on the draft guidelines for customer protection. These will be added to DPIIT national E-commerce policy and will be unveiled by DPIIT itself.

The government has now mentioned that the updated policy might only be a reiteration of existing rules. The E-commerce industry must wait for further indications to have a clear cut understanding of the revised policy draft.

What is the time limit for taking registration under GST?

If it is a business, then there is a limit of 30 days to get the same registered under GST. On the other hand, taxable individuals have to do it before commencing the business. Understand the procedure for GST registration and GST returns here.

What is the eligibility Criteria for registering your business as MSME

It is important for the plant and machinery investment be under Rs. 5 crores for a service enterprise to be registered as an MSME, it. More on Income Tax Return Filing.

What are the forms of return prescribed under the Income-tax Law?

Choose the income tax return forms based on the classes of the taxpayers. As per the income tax law, the taxpayers should file the necessary ITR forms online before the due date. Learn more about ISO Certification.

What does ISO certification Cost?

The ISO certification company would not charge extra than what has been mentioned in the quote. You would know the payment method and the exact cost from their quote. More info on NGO Registration in India.

What are the types of NGO?

NGOs are of two types namely, Trust and Society. Unlike the first two, the third one is profitable and is registered by the Companies Act. More about Udyog Aadhar Registration.

0

E-commerce companies asked to submit their concerns on draft policy

2199

There is a huge space for the E-commerce industry to grow in the Indian market. With over $600 billion worth in the retail market, India has only 5% of E-commerce companies in it. Even though India’s smartphone usage has rocketed high these past few years, the habit of purchasing online hasn’t increased dramatically among the citizens. There might be different reasons for the delayed adaption of online shopping but E-commerce can be penetrated better with much better policies and reforms offered to the operators.

E-Commerce Draft Policy

The 42-page e-commerce draft policy was released in February 2019 and addresses issues of the e-commerce ecosystem – data, infrastructure, marketplace, regulatory issues, digital economy, and export promotion. It stated the creation of a regulatory framework for cross border data flow and data collection through various channels like social media, e-commerce platforms, and search engines. The policy stated that any business that collects sensitive data from users in India and stores them abroad shall not make the data available for any business and foreign government without the consent of the customer and Indian authorities.

Get Your Company Registered

Submission of Concerns over E-commerce Policy Draft

Following the government’s release of draft e-commerce policy, which proposes setting up of a technological framework for regulating cross-border data flow, the government has asked the retailers to submit their concerns on the draft within 10 days.

The current Commerce and Industry Minister met on 17 June 2019 with many industry stakeholders and government officials from RBI and the Ministry of External Affairs. The meeting was held in four cohorts and the discussion was about opportunities for India in the digital economy, e-commerce’s value addition to GDP, data flow concerning privacy, security, safety, ownership and sharing of data and cross border flow of data.

According to media reports, the ministry in its statement said that e-commerce industry representatives flagged their concerns about the draft and felt it was not consultative. It further added that the Commerce Minister assured that every concern would be addressed and requested the representatives to send their concerns in writing to the Department for Promotion of Industry and Internal Trade (DPIIT) within 10 days.

Also, the companies raised their concern over data storage and data processing guidelines. To which the Ministry of Electronics and Information assured to consider their concerns while formulating the Data Protection Bill.

E-commerce Policy 2020

The government is expected to bring an updated E-commerce Policy in 2020. Though the timeline hasn’t been confirmed yet, everyone is looking forward to the newer policies. 

The policy draft 2019 disallows collection and storage of public’s sensitive data locally but to be stored abroad when shared with any third party. This is imposed even when the customer has shared their consent with sharing and storing the data locally.

E-commerce regulations include several domains like retail, information technology, consumers, payments etc. Hence many believe that localizing the customer data will help a lot of Indian startups to bring up more local innovation. The Department for Promotion of Industry and Internal Trade (DPIIT) also believes in the localization of data for the betterment of innovation and accessibility. These thoughts were shared after the policy draft 2019 revelation.

Many ministries are trying to manage these circumstances. They are working on bringing in their own E-commerce rules, especially the IT and the consumer affairs ministry. The IT Ministry is working on non-personal data regulations. The consumer affairs ministry is working on the draft guidelines for customer protection. These will be added to DPIIT national E-commerce policy and will be unveiled by DPIIT itself.

The government has now mentioned that the updated policy might only be a reiteration of existing rules. The E-commerce industry must wait for further indications to have a clear cut understanding of the revised policy draft.

What is the time limit for taking registration under GST?

If it is a business, then there is a limit of 30 days to get the same registered under GST. On the other hand, taxable individuals have to do it before commencing the business. Understand the procedure for GST registration and GST returns here.

What is the eligibility Criteria for registering your business as MSME

It is important for the plant and machinery investment be under Rs. 5 crores for a service enterprise to be registered as an MSME, it. More on Income Tax Return Filing.

What are the forms of return prescribed under the Income-tax Law?

Choose the income tax return forms based on the classes of the taxpayers. As per the income tax law, the taxpayers should file the necessary ITR forms online before the due date. Learn more about ISO Certification.

What does ISO certification Cost?

The ISO certification company would not charge extra than what has been mentioned in the quote. You would know the payment method and the exact cost from their quote. More info on NGO Registration in India.

What are the types of NGO?

NGOs are of two types namely, Trust and Society. Unlike the first two, the third one is profitable and is registered by the Companies Act. More about Udyog Aadhar Registration.

0

No Record Found
SHARE
A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.