August 2023
Key Labour Law / Employee welfare
The notification highlights the process for handling complaints received in any ESIC office related to non-compliance by factories/establishments, which require regular inspection. The Compliance Assessment and Inspection Unit (CAIU) is tasked with examining these complaints, proposing actions, and overseeing them until resolution. The CAIU is also entrusted with analyzing compliance and non-compliance data for employers under the ESI Act to establish evidence-based criteria for inspecting units.
Seamless Comment: The ESIC's recent notification underscores the importance of efficient complaint resolution and compliance monitoring in workplaces covered by the ESI Act. By introducing a prescribed proforma for complaint cases necessitating inspection or SPV verification, the ESIC aims to streamline and standardize the process, ensuring that compliance issues are thoroughly investigated and resolved. This move aligns with broader efforts to enhance workplace safety, employee welfare, and regulatory compliance. It is crucial for regional and sub-regional ESIC offices, as well as employers under the ESI Act, to be aware of and adhere to these procedural requirements to ensure smooth compliance and dispute resolution processes. Legal counsel may be advisable for businesses to navigate these compliance procedures effectively.
Source: https://www.esic.gov.in/attachments/circularfile/5bdc0b5d25154e24b927886442907747.pdf
The Employees' Provident Fund Organisation (EPFO), on August 23, 2023, introduced a Standard Operating Procedure (SOP) for the processing of Joint Declarations aimed at member profile updates. This SOP provides a structured framework for handling joint declarations, emphasizing the importance of adherence to its guidelines. Notably, any aspect not explicitly covered within the current SOP will continue to be governed by the existing Manual of Accounting Procedure (MAP).
Seamless Comment: The release of a Standard Operating Procedure (SOP) by EPFO signifies a step toward ensuring efficient and consistent processes for handling joint declarations related to member profile updates. It is crucial for EPFO stakeholders, including employers and members, to familiarize themselves with the newly established SOP and implement its procedures accordingly. The existence of clear guidelines not only streamlines operations but also enhances transparency and accountability. Any ambiguity or gaps not addressed by the SOP should be managed by referring to the existing Manual of Accounting Procedure (MAP). It is advisable for stakeholders to consult with EPFO authorities or legal experts for a comprehensive understanding of the SOP's implications and to ensure compliance with EPFO regulations.
Source: https://www.epfindia.gov.in/site_docs/PDFs/Circulars/Y2023-2024/SOP_JointDeclarations_29082023.pdf
The Employees' State Insurance Corporation (ESIC), on August 17, 2023, issued a significant notification regarding the amendment of rule 55(1) and 56(1) of the ESI (Central) Rules, 1950. This amendment aimed to relax the eligibility conditions for sickness benefit and maternity benefit, specifically for the benefit period spanning from January 01, 2021, to June 30, 2021. The Gazette Notification confirming this amendment was dated July 25, 2023. The decision to amend these rules was driven by the welfare concerns of Insured Persons (IPs) and Insured Women (IW) who faced difficulties in accessing ESIC benefits due to not meeting the minimum requirement of 78 days' contribution. This proposal was approved in the 184th meeting of the ESI Corporation, and subsequently, the Government of India officially notified the amendment on July 25, 2023. In light of this amendment, all Regional Offices and Sub-Regional Offices have been instructed to review claims received from IPs/IWs for the benefit period from January 01, 2021, to June 30, 2021, and expedite their settlement.
Seamless Comment: ESIC's amendment to relax eligibility conditions for sickness and maternity benefits, particularly for the benefit period between January 01, 2021, and June 30, 2021, is a laudable step towards ensuring that individuals facing difficulty accessing these benefits receive much-needed support. This amendment demonstrates ESIC's commitment to adapt and cater to the evolving needs of insured individuals. Regional and Sub-Regional Offices should diligently implement the new eligibility criteria, review claims promptly, and settle them expeditiously to provide essential support to those in need. This amendment reflects a proactive approach to social welfare and should benefit IPs and IWs who previously fell short of the contributory requirements.
Source: https://www.esic.gov.in/attachments/circularfile/e5da0699fbbae91fd5048c679a5beafc.pdf
The Government of Punjab, on August 11, 2023, issued amendments to the Punjab Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Rules, 2008. These changes, effective from the same date, include revised membership certification, modified contribution remittance procedures, and the introduction of a new certificate format. These amendments aim to simplify compliance and improve conditions for construction workers in Punjab. Stakeholders should review and adhere to the updated rules for compliance.
Seamless Comment: The introduction of amendments to the Punjab Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Rules demonstrates the government's commitment to enhancing the regulation of employment and conditions of service for construction workers. The amendments streamline administrative processes by allowing a broader range of authorities to issue certificates regarding employment, providing flexibility in remitting contributions, and introducing a revised certificate format. These changes are expected to simplify compliance for both workers and employers in the construction industry. However, it is advisable for stakeholders to closely review the amended rules and ensure compliance with the new provisions to avoid any regulatory issues.
Source: https://compfie.aparajitha.com/wp-content/uploads/2023/08/18082023_LEI_02.pdf
The government has introduced an increase in the amount available under the provident fund for women, aligning with the objectives of the EPF Scheme, 1952. This scheme aims to provide social security to all employees, regardless of gender, working in EPF-covered establishments. As per the EPF Scheme, 1952, employees earning monthly wages up to Rs. 15,000 are mandatorily enrolled in the fund, contributing 12% of their wages, including basic wages, dearness allowance, and retaining allowance, if applicable. Employers are also required to contribute 12% of employees' wages.
Seamless Comment: The increase in provident fund benefits for women is a significant move towards enhancing social security and financial well-being for female employees in EPF-covered establishments. It promotes gender equality and aligns with the principles of inclusive social security. While the Code on Social Security, 2020, aims to streamline and modernize labor regulations, it's important to note that the specific provisions regarding the determination of contribution rates have not yet been implemented. Employers and employees should stay informed about changes in the EPF Scheme and the Code on Social Security as they evolve to ensure compliance with the latest regulations.
Source: https://labour.gov.in/sites/default/files/pib1944361.pdf
The Ministry of Labour & Employment (MoL&E), on July 31, 2023, issued a notification extending social security benefits to gig workers. This move is part of broader labor law reforms aimed at protecting workers, including those in non-traditional employment arrangements. The Code on Social Security, 2020, introduced as part of these reforms, mandates comprehensive social security plans for gig and platform employees, covering areas like insurance, health, and retirement benefits. Additionally, the Code establishes a Social Security Fund funded by aggregators, ensuring greater financial security for gig workers.
Comment: The MoL&E's notification represents a pivotal development in ensuring gig workers have access to essential social security protections. The extension of benefits, including insurance and retirement provisions, underscores the government's commitment to improving the well-being of gig workers. The establishment of a Social Security Fund funded by aggregators provides a sustainable mechanism for supporting workers in non-traditional employment arrangements. Gig workers and aggregators should stay informed about these reforms and their implications to ensure compliance and maximize the benefits provided by the Code on Social Security, 2020.
Source: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1944372
On August 01, 2023, the Government of Maharashtra issued a notification establishing the basic minimum wages for workers in certain industries. These rates are applicable for the period up to December 31, 2023. Industries Covered Include:
- Motor Repair Workshop Industry
- Bakery Industry
- Pharmaceutical Industry
- Dairy Industry
- Food Industry
- Film Production Industry
Seamless Comment: The Maharashtra Government's issuance of basic minimum wages for specific industries demonstrates a commitment to ensuring fair and equitable compensation for workers in these sectors. Setting industry-specific wage rates helps address varying cost-of-living considerations and labor market dynamics.
Source: https://seamlessglobal.co/wp-content/uploads/2023/09/Maharashtra_PDF.pdf
On July 27, 2023, the Employees’ Provident Fund Organisation (EPFO) took a significant step by releasing comprehensive guidelines for the filing of complaints with EPFO Vigilance. These guidelines aim to streamline the complaint process and ensure that grievances related to EPFO fall within its jurisdiction. Notable provisions include directing redressal of service delivery grievances to the Customers Service Division (CSD) of EPFO or the respective Regional PF Commissioners in relevant Regional Offices. To facilitate this, complaints can be lodged through the Complaint Management System (CMS) Portal available on the Central Vigilance Commission (CVC) website.
Seamless Comment: Importantly, the guidelines emphasize that complaints should not be anonymous or pseudonymous, except for those filed under the PIDPI Resolution, ensuring transparency and accountability in the process. Furthermore, these guidelines stipulate that no action will be taken on anonymous or pseudonymous complaints, underscoring the importance of accountability in addressing grievances within EPFO.
On August 7, 2023, the Ministry of Labour & Employment (MoL&E) issued a notification concerning daily wage workers operating in local areas. This notification aligns with the Unorganised Workers’ Social Security Act, 2008, which mandates the government to provide social security to unorganized sector workers, including those engaged in daily wage labor. The notification outlines the formulation of welfare schemes covering life and disability cover, health and maternity benefits, old-age protection, and other relevant benefits as determined by the Central Government.
Seamless Comment: Notably, life and disability coverage are provided through the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY). Additionally, the Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) pension scheme ensures old-age protection, offering a monthly pension of Rs. 3,000 after reaching the age of 60. For comprehensive details, please refer to the attached document, reaffirming the government's commitment to enhancing social security for daily wage workers in local areas.
Source: https://pib.gov.in/newsite/pmreleases.aspx?mincode=21
On August 7, 2023, the Government of Karnataka took a significant step by notifying the Factories (Karnataka Amendment) Act, 2023, which introduces amendments to the Factories Act, 1948, as applicable to the State of Karnataka. These amendments address several key aspects of labor regulations in factories, including daily working hours, intervals for rest, spread-over time, extra wages for overtime, the power to make exempting orders, and further restrictions on women's employment.
Seamless Comment: The amendments, designated under [KARNATAKA ACT NO. 33 OF 2023], reflect the government's commitment to updating and refining labor laws to better suit the needs and conditions of the state's workforce while ensuring safety, fairness, and compliance within factory operations.
Source: https://erajyapatra.karnataka.gov.in/WriteReadData/2023/6043.pdf
On August 11, 2023, the Government of Punjab took a significant step by publishing the Punjab Building and Other Construction Workers (Regulation of Employment and Conditions of Service) (Amendment) Rules, 2023. These rules introduce amendments to the existing Punjab Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Rules, 2008. Effective immediately on August 11, 2023, these amendments bring about notable changes to the rules governing the employment and conditions of service for building and construction workers in the state.
Seamless Comment: The amendments cover several key areas, including membership, contribution to the fund, and the required certificate for employment verification. Notably, in rule 260, the criteria for membership have been expanded to accept certificates from various authorities, individuals, or officers authorized by the Board, rather than solely from employers or contractors. Rule 261 regarding contribution to the fund has been modified to allow for advanced remittance for one year when applying for registration or renewal, providing more flexibility in the payment process. Additionally, the rules include the substitution of Form No. XXVII, which pertains to certification of employment for building and construction workers.
Source: https://seamlessglobal.co/wp-content/uploads/2023/09/Punjab-_Notification.pdf
The notification issued by the Labour Department of the Government of National Capital Territory of Delhi (GNCTD) on July 31, 2023, brings important clarity regarding the registration of Trade Unions and Federations of Trade Unions with All India Jurisdiction by the Registrar Trade Union Delhi. The Ministry of Labour & Employment's letter dated July 07, 2023, serves as a foundation for this notification, emphasizing the definition of "appropriate Government" under section 2 of the Trade Unions Act, 1926. This section distinctly designates the Central government for Trade Unions with objectives spanning multiple states, while State government jurisdiction applies to other Trade Unions.
Seamless Comment: Furthermore, the notification acknowledges a Gazette Notification under the Indian Union Act 1926 and provides accompanying references for added context. It underscores the need for appropriate measures to be taken in the registration process of Trade Unions and Federations with All India Jurisdiction, aligning with the Ministry of Labour & Employment's directive. This notification serves to establish a clear framework for the registration of Trade Unions with broad-ranging jurisdictional mandates, ensuring compliance and uniformity in the process.
Source: https://it.delhigovt.nic.in/writereaddata/Cir202363292.pdf
Key Announcements by RBI
On August 10, 2023, the Reserve Bank of India (RBI) released a Statement on Developmental and Regulatory Policies, unveiling a series of measures across various domains. These policies span Financial Markets, Regulation and Supervision, Payment Systems, and the rapidly evolving realm of FinTech. The comprehensive framework introduced in Financial Markets focuses on benchmark administration, covering foreign exchange, interest rates, money markets, and government securities. This extends to benchmarks such as certificates of deposits (CDs) rates, repo rates, and FX Options Volatility Matrix.
Seamless Comment: To promote UPI-Lite, offline transactions using Near Field Communication (NFC) technology have been facilitated with defined transaction and instrument limits. Finally, in the realm of FinTech, RBI's Innovation Hub is developing a digital Public Tech Platform to enable seamless and frictionless credit delivery by streamlining the flow of digital information to lenders. These policy measures underline RBI's commitment to enhancing the efficiency and security of India's financial landscape.
Source: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=56174
In a significant move towards embracing digital transformation in the financial sector, the Reserve Bank of India (RBI) initiated the Pilot Project for a Public Tech Platform on August 14, 2023. This pioneering platform is designed to usher in an era of frictionless credit delivery by streamlining the flow of essential digital information to lenders. It boasts an open architecture, open Application Programming Interfaces (APIs), and standardized protocols, thereby fostering seamless connectivity for all stakeholders in the financial landscape in a 'plug and play' model.
Seamless Comment: This visionary platform is slated to launch as a pilot project, strategically calibrated for both information providers' access and use cases. It is poised to bring unprecedented efficiency to the lending process, marked by reduced costs, accelerated disbursements, and scalability. As the Pilot Project takes flight on August 17, 2023, it holds the promise of transforming India's credit ecosystem and solidifying its position as a global fintech leader.
Source: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=56200
On August 25, 2023, the Reserve Bank of India (RBI) issued a significant notification addressing various macroeconomic indicators including the repo rate, standing deposit facility (SDF), and liquidity adjustment facility (LAF). Following a comprehensive evaluation of the prevailing and evolving economic conditions, the Monetary Policy Committee (MPC) arrived at several key decisions.
Seamless Comment: The MPC has reaffirmed its dedication to gradually withdrawing accommodation in order to bring inflation in line with the predefined target. This dual objective focuses on achieving the medium-term consumer price index (CPI) inflation target of 4 per cent, within a range of +/- 2 per cent, while concurrently supporting sustainable economic growth. These measures are indicative of the RBI's concerted efforts to strike a balance between price stability and economic prosperity in the dynamic economic landscape.
Source: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=56174
Key Corporate Law Updates
The Ministry of Corporate Affairs (MCA) has issued a notification condoning delays in filing LLP forms. Form-3 and Form-4 can now be filed without additional fees for events from January 01, 2021, onwards, with fees applicable for earlier dates. Form-11 can be filed without additional fees for the financial year 2021-22 onwards, with additional fees for previous years. The filing window is from September 01, 2023, to November 30, 2023. This initiative eases compliance and offers relief to LLPs, ensuring they won't face punitive actions for past delays, given they adhere to specified conditions.
Seamless Comment: The Ministry of Corporate Affairs' notification regarding the condonation of delay in filing LLP forms provides relief and clarity to stakeholders. It introduces a systematic approach to form filing, allowing for sequential filing of forms and encouraging stakeholders to update master data accurately. The provision of pre-filled data streamlines the process while placing the responsibility for correct data filing on stakeholders. Additionally, the notification specifies the fees for delayed filing based on event dates, providing transparency in financial matters.
Source: https://www.mca.gov.in/bin/dms/getdocument?mds=Zt6foWsl%252BABAbU7Pid9NGg%253D%253D&type=open
The Ministry of Corporate Affairs (MCA) continues its efforts to refine corporate governance and administrative processes with the issuance of the Companies (Incorporation) Second Amendment Rules 2023. This amendment, released on August 2, 2023, serves to further amend the Companies (Incorporation) Rules, 2014.
Seamless Comment: The key change introduced by this amendment is the substitution of Form No. RD-1 within the Annexure. These amendments take effect from August 2, 2023. The Ministry of Corporate Affairs' proactive approach to refining and updating the Companies (Incorporation) Rules underscores its commitment to enhancing corporate governance and regulatory compliance. Additionally, the availability of the revised Form No. RD-1 should be utilized for accurate and up-to-date record-keeping in company incorporation processes.
Source: https://www.mca.gov.in/bin/dms/getdocument?mds=jYQ0wTBvMQwmTluXHncG0A%253D%253D&type=open
Insurance Regulatory & Development Authority
The Insurance Regulatory and Development Authority of India (IRDAI) has unveiled a transformative agenda for the reinsurance market, with significant amendments to the Reinsurance Regulations announced during its 123rd Authority Meeting on August 24, 2023. The primary objectives behind these amendments are to harmonize and streamline existing regulations affecting Indian insurers, Indian reinsurers, Foreign Reinsurance Branches (FRBs), and International Financial Services Centre Insurance Offices. The sweeping changes focus on expanding the reinsurance sector's capacity, enhancing technical expertise, reducing compliance burdens, and fostering an environment conducive to innovation.
Seamless Comment: IRDAI's strategic vision seeks to not only accommodate the burgeoning demand and manage larger risks but also cultivate an environment that propels reinsurance activities to flourish, both domestically and on the international stage. These amendments reflect a significant stride toward achieving these objectives by promoting efficiency, innovation, and a more competitive reinsurance landscape.
Source: https://irdai.gov.in/document-detail?documentId=3790275
The Insurance Regulatory and Development Authority of India (IRDAI) has released an Exposure Draft on the Customer Information Sheet/Know Your Policy on August 30, 2023. This draft aims to simplify health insurance policy information for policyholders. Stakeholders are invited to provide their views and feedback on these proposed revisions to ensure clarity and accessibility.
Seamless Comment: IRDAI's move to simplify policy information demonstrates a commitment to enhancing transparency and empowering policyholders with easily understandable content. Soliciting feedback from stakeholders reflects an inclusive approach to governance and aligns with broader efforts to make financial services more consumer-friendly. It's an opportunity for insurers and policyholders to contribute to the creation of policies that prioritize clarity and accessibility, ultimately benefiting all involved parties.
Source: https://irdai.gov.in/document-detail?documentId=3802045
Taxation (State and Central)
On July 31, 2023, the Ministry of Finance (MoF) issued an important notification regarding "Account Aggregator" systems. This notification serves to officially recognize "Account Aggregator" as the systems through which information may be shared via the common portal, subject to consent, as per Section 158A of the Central Goods and Services Tax Act, 2017. Effective from October 01, 2023, this notification has far-reaching implications for data sharing in the context of taxation and financial services.
Seamless Comment: For clarity, the notification provides an explanation of the term "Account Aggregator," defining it as a non-financial banking company that operates in accordance with policy directions issued by the Reserve Bank of India under section 45JA of the Reserve Bank of India Act, 1934. This definition aligns with the criteria set forth in the Non-Banking Financial Company - Account Aggregator (Reserve Bank) Directions, 2016. By officially recognizing and providing a clear definition, this notification establishes a regulatory framework for the role of "Account Aggregators" in information sharing, ensuring compliance with applicable laws and regulations.
Source: https://egazette.gov.in/WriteReadData/2023/247740.pdf
The Goods and Services Tax (Seventh Amendment) Rules, 2023 introduce significant amendments to the Punjab Goods and Services Tax Rules, 2017. These amendments aim to streamline and clarify certain procedures within the GST framework. One of the key changes involves sub-rule (4A), where the requirement for authentication of Aadhaar numbers is specified for applicants, excluding those notified under subsection (6D) of section 25.
Seamless Comment: Under this amendment, applicants opting for Aadhaar number authentication must undergo the process while submitting their application. The date of Aadhaar number authentication or fifteen days from the submission of the application in Part B of FORM GST REG-01, whichever is earlier, will be considered as the date of submission.
On August 30, 2023, the Central Board of Direct Taxes (CBDT) issued the Income-tax (Twentieth Amendment) Rules, 2023, which introduce a significant amendment to the Income-tax Rules, 1962. The primary focus of this amendment is to address the application process under sub-section (20) of section 155 concerning the credit of tax deduction at source (TDS).The newly inserted rule, Rule 134, outlines the procedures for making applications under sub-section (20) of section 155. These applications, as specified in the rule, shall be made using Form No. 71. Form No. 71 is intended to facilitate the credit of TDS, and it must be submitted electronically. The submission method depends on whether the return of income is required to be furnished under digital signature or through electronic verification code.
Seamless Comment: These amendments are scheduled to come into effect on October 01, 2023. They reflect the CBDT's ongoing efforts to streamline and digitize tax-related procedures, making it more efficient and user-friendly for taxpayers.
Source: https://incometaxindia.gov.in/communications/notification/notification-73-2023.pdf
On August 25, 2023, the Government of Punjab introduced an amendment to an existing notification, specifically Notification No. S.O.7/P.A.5/2017/S.128/2018, dated February 07, 2018. This notification pertains to the waiver of late fees that registered individuals may be required to pay for failing to submit their return in FORM GSTR-4.
Seamless Comment: The amendment focuses on the sixth proviso within the original notification. It alters the date mentioned in the proviso from "June 30, 2022," to "July 28, 2022." This adjustment extends the deadline until which individuals can benefit from the late fee waiver under the GSTR-4 return filing.
The Government of Punjab, on August 25, 2023, issued a notification addressing registered individuals who have failed to submit a valid return within thirty days from the service of the assessment order under the Punjab Goods and Services Tax Act, 2017. This notification carries significant implications for those individuals who find themselves in this situation.Effective from March 31, 2023, the notification outlines specific procedures that, when followed, result in the deemed withdrawal of the assessment order. These procedures are as follows:
Seamless Comment: It's important to note that this withdrawal of the assessment order applies irrespective of whether or not an appeal had been filed against the original assessment order under section 107 of the Act. This means that registered individuals have the opportunity to rectify their compliance status by adhering to the outlined procedures and thereby avoiding the consequences of the assessment order.
The Central Board of Indirect Taxes (CBDT) has issued a corrigendum to rectify an error in Notification No. G.S.R. 615(E) dated August 18, 2023, related to the Income-tax (Eighteenth Amendment) Rules 2023. The correction involves the insertion of the phrase "or taken on lease or rent" in a specific section of the document. Such corrigenda are common in legal documents to ensure accuracy and clarity in the rules and regulations.
Seamless Comment: With the insertion of the phrase "or taken on lease or rent" in the relevant section, it clarifies that certain accommodations, whether owned, leased, or rented by the employer, fall under the purview of the rules specified in the notification. This clarification ensures that the rules and regulations regarding income tax treatment of such accommodations are applied accurately and uniformly.
Source: https://incometaxindia.gov.in/communications/notification/notification-65-2023.pdf
The Central Board of Direct Taxes (CBDT) has introduced a significant update on August 28, 2023, by announcing the availability of a new functionality on the e-Filing portal. This enhancement allows users to revise Form 27C using the portal. The introduction of this functionality simplifies and streamlines the process for individuals and organizations required to revise their Form 27C submissions.
Seamless Comment: It enhances the convenience and efficiency of tax-related activities and ensures greater accuracy and compliance in reporting. This update will have a positive impact on users by reducing the administrative burden associated with Form 27C revisions and promoting ease of compliance with tax regulations.
Source: https://incometaxindia.gov.in/pages/communications/index.aspx
The Central Board of Direct Taxes (CBDT) marked a significant milestone on August 26, 2023, with the launch of the extensively revamped National Website of the Income Tax Department. This strategic move aims to usher in a new era of convenience and efficiency for taxpayers across the nation. In response to the ever-evolving technological landscape and the growing expectations of taxpayers, the Income Tax Department has meticulously redesigned its online platform, www.incometaxindia.gov.in.
Seamless Comment: The revamped website boasts a user-friendly interface that caters to taxpayers' diverse needs, featuring value-added functionalities and introducing entirely new modules. Perhaps one of the most noteworthy additions is the capability for users to effortlessly compare different Acts, Sections, Rules, and Tax treaties, streamlining the often complex task of navigating the tax landscape. Moreover, all the content on the website is now seamlessly tagged with relevant Income Tax sections, simplifying information retrieval and ensuring a smoother user experience.
The Central Board of Direct Taxes (CBDT) made notable updates to the Income Tax Rules with the publication of the Income-tax (Nineteenth Amendment) Rules, 2023, on August 28, 2023. This amendment, effective from the same date, introduces critical changes aimed at streamlining processes related to the requisition of services and references under section 132 of the Income Tax Act, 1961.
Seamless Comment: These forms are designed to facilitate the streamlined implementation of section 132, enhancing the overall efficiency and transparency of the process.
Source: https://incometaxindia.gov.in/communications/notification/notification-70-2023.pdf
On August 16, 2023, the Government of Delhi took a significant step in providing clarity on e-invoicing by issuing a comprehensive clarification, in line with the Circular issued by the Central Board of Indirect Taxes and Customs (CBIC). This circular provides crucial guidance on e-invoicing procedures, especially concerning government departments, establishments, agencies, local authorities, and public sector undertakings (PSUs).
Seamless Comment: the circular underscores that registered entities whose turnover surpasses the prescribed threshold for e-invoice generation must issue e-invoices for supplies made to government departments, establishments, agencies, local authorities, PSUs, and similar entities. This measure enhances transparency and digitalization in government transactions, contributing to a more efficient tax ecosystem.
The Ministry of Finance (MoF) unveiled an impactful initiative with the introduction of the "Mera Bill Mera Adhikaar" Invoice Incentive Scheme. This initiative is poised to cultivate a culture where customers actively seek invoices and bills for all their purchases, ultimately contributing to transparency and accountability in transactions.The launch of this scheme aligns with the government's commitment to enhancing financial accountability and streamlining economic transactions.
Seamless Comment: It underscores the significance of invoices in not only safeguarding consumer rights but also in fostering a more transparent and responsible economic environment. The detailed notification attached to this announcement provides comprehensive information on the scheme's implementation and requirements, aiming to make it a success story in promoting responsible financial practices.
Source: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1951804
On August 18, 2023, the Government of Delhi issued a crucial notification addressing the tax implications surrounding shares held by a holding company in its subsidiary company. This notification aligns with the guidance provided in CBIC Circular No. 196/08/2023-GST, which offers clarification on the taxation of shares held by a holding company in its subsidiary. The notification clarifies that the mere act of a holding company holding shares in its subsidiary company cannot be categorized as a supply of services from the holding company to the
Seamless Commet: This clarification from the Delhi Government simplifies the tax treatment of shareholding relationships between parent and subsidiary companies. It underscores that the mere holding of shares does not constitute a taxable supply, thereby providing clarity and certainty for businesses operating within this structure.
Source: https://taxinformation.cbic.gov.in/view-pdf/1003170/ENG/Circulars
On August 19, 2023, the Central Board of Direct Taxes (CBDT) issued a notification marking the operationalization of the Board for Advance Rulings. This development carries significant implications for various segments of taxpayers. Firstly, non-resident investors stand to benefit significantly from this mechanism. They can now seek clarity on their income tax liability before making investments in India. This proactive approach empowers foreign investors to make informed decisions and formulate investment strategies more effectively.
Seamless Comment: To aid taxpayers in navigating this process, the Chairman of the CBDT released a Handbook of the Board for Advance Rulings on August 18, 2023. This handbook serves as a comprehensive guide for taxpayers seeking advance rulings, offering insights and clarifications on the procedure. Whether seeking an advance ruling or simply interested in understanding the process better, taxpayers can access the Handbook via the provided link, ensuring a smoother and more informed engagement with the new advance ruling mechanism. This move by the CBDT signifies a significant step towards enhancing tax clarity and efficiency in India's tax landscape.
The Ministry of Law and Justice introduced the Integrated Goods and Services Tax (Amendment) Act, 2023, aimed at making pivotal changes to the Integrated Goods and Services Tax Act, 2017. These amendments are poised to bring significant alterations to the taxation landscape and are of great importance to businesses and taxpayers.One of the notable amendments is the revision of Section 2, which deals with definitions. In clause (17), sub-clause (vii) has been substituted to exclude online gaming, except for online money gaming as defined in clause (80B) of Section 2 of the Central Goods and Services Tax Act, 2017. This change distinguishes online money gaming from other forms of online gaming concerning tax implications.
Seamless Comment: The effective date of these amendments will be determined by the Central Government through notification in the Official Gazette. These changes are expected to impact various aspects of taxation and trade and require close attention from businesses and tax professionals to ensure compliance and optimal tax planning.
Source: https://egazette.gov.in/WriteReadData/2023/248184.pdf
The Central Board of Indirect Taxes and Customs (CBIC) has released a crucial notification on August 17, bringing about revisions in the Exchange Rates for the import and export of goods. This notification, marked as Notification No. 61/2023-Customs (N.T.), effectively supersedes the prior Notification No. 57/2023-Customs (N.T.), which was issued on August 3, 2023. The new exchange rates will be in operation starting from August 18, 2023.
Seamless Comment: These revisions in exchange rates have considerable implications for businesses engaged in international trade, as they directly influence the cost and pricing of imported and exported goods. Staying abreast of these alterations is imperative for accurate financial planning and transactions in the global market.
On August 18, 2023, the Central Board of Direct Taxes (CBDT) introduced the Income Tax (Eighteenth Amendment) Rules, 2023. These amendments bring significant changes to the Income-Tax Rules, 1962, specifically targeting the valuation of perquisites provided to employees. One notable alteration can be found in Rule 3, which pertains to the "Value of Perquisites." In particular, sub-clause (1) of this rule, which contains a table specifying the value of residential accommodation provided by an employer, has been substituted. This change is set to come into force on September 1, 2023.
Seamless Comment: These amendments are noteworthy as they impact how various benefits provided to employees are valued for income tax purposes. Valuation of perquisites plays a crucial role in determining the taxable income of employees, and any modifications to these rules can have implications for both employers and employees. It is advisable for taxpayers and employers to review these changes and ensure compliance with the updated rules when they come into effect.
The Lok Sabha introduced the Central Goods and Services Tax (Amendment) Bill, 2023, on August 9, 2023, to amend the Central Goods and Services Tax Act, 2017. Key changes include definitions for "online gaming" and "online money gaming," and provisions related to "specified actionable claims." These amendments aim to address evolving aspects of online gaming and related activities within the GST framework.
Seamless Comment: These proposed amendments reflect the evolving landscape of online gaming, money gaming, and related activities within the GST framework, aiming to ensure comprehensive taxation coverage in line with contemporary practices.
Source: https://egazette.gov.in/WriteReadData/2023/248183.pdf
On August 4, 2023, the government issued a notification, effective from October 1, 2023, introducing a special tax collection procedure for electronic commerce operators. This procedure applies to operators required to collect tax at source under section 52 of the Central Goods and Services Tax Act, 2017, specifically for supplies made by individuals paying tax under section 10 of the same Act. Under this procedure, electronic commerce operators cannot facilitate inter-State supply of goods by these individuals. Instead, they must collect tax at source, remit it to the government, and submit supply details electronically in FORM GSTR-8 through the common portal. This move aims to streamline tax collection in the e-commerce sector.
Comment: The issuance of this notification on August 4, 2023, represents a significant regulatory development in the realm of electronic commerce and taxation. By introducing a special procedure for electronic commerce operators, particularly concerning supplies made by persons paying tax under section 10 of the Central Goods and Services Tax Act, 2017, the government aims to streamline tax collection processes. These provisions will take effect from October 1, 2023, signaling an imminent shift in compliance requirements for electronic commerce operators in relation to inter-State supply of goods and tax collection at source.
Source: https://taxinformation.cbic.gov.in/view-pdf/1009812/ENG/Notifications
The Central Board of Indirect Taxes & Customs (CBIC) recently introduced an important enhancement on August 2, 2023, by extending the Automatic Let Export Order (auto LEO) facility within the Express Cargo Clearance System (ECCS). This development is aimed at simplifying and expediting the customs clearance process for Courier Shipping Bills (CSB). Initially, the auto LEO feature was applicable to CSBs that were not flagged by the risk management system (RMS) and subsequently cleared via the Customs X-ray scanning process.
Seamless Comment: This expansion is part of the ongoing initiatives to enhance the ease of doing business in customs procedures. In addition to its existing coverage, the auto LEO facility will now be accessible for CSBs designated as 'assessment only,' provided they have undergone assessment clearance and have not been earmarked for further examination. This step represents a positive stride in modernizing and streamlining customs operations, benefiting courier services and international trade businesses.
Source: https://taxinformation.cbic.gov.in/view-pdf/1003176/ENG/Circulars
On August 3, 2023, the Deferred Payment of Import Duty (Amendment) Rules, 2023, were published, introducing changes to the Deferred Payment of Import Duty Rules 2016. This amendment, effective from the same date, brings significant alterations to the existing rules.
One notable amendment is the insertion of a proviso in Rule 4, which deals with the "Information about intent to avail the benefit of notification." This proviso empowers the Central Government to, under exceptional circumstances and with recorded reasons in writing, allow payments to be made on a different due date. This flexibility can be crucial for importers facing unforeseen challenges.
Seamless Comment: These amendments aim to enhance the effectiveness and adaptability of the Deferred Payment of Import Duty Rules, providing importers with more options and streamlining the duty payment process. Importers should be mindful of these changes and their potential impact on their import operations.
Source: https://taxinformation.cbic.gov.in/view-pdf/1009816/ENG/Notifications
On August 01, 2023, the Ministry of Finance (MoF) issued a significant notification concerning the deduction of tax under section 194-I of the Income-tax Act. According to this notification, there shall be no tax deduction under section 194-I for payments categorized as lease rent or supplemental lease rent. This exemption is applicable when such payments are made by a lessee to a person operating within an International Financial Services Centre (IFSC) and leasing a ship, subject to specific conditions. However, this relaxation is limited to the ten consecutive assessment years declared by the lessor in Form No. 1, where they opt for deduction under section 80LA. In all other years, the lessee remains liable to deduct tax on lease rent payments.
Seamless Comment: The notification also outlines that the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) will establish procedures, formats, and security standards for data capture, transmission, document uploading, and archival. This new regulation will come into effect on September 01, 2023.
Source: https://egazette.gov.in/WriteReadData/2023/247767.pdf
On July 31, 2023, the Central Board of Indirect Taxes and Customs (CBIC) made a significant announcement regarding the enforcement date of specific provisions in the Finance Act, 2023. The details are as follows:
- October 01, 2023: Sections 137 to 162 of the Finance Act, 2023, with the exception of sections 149 to 154, will come into force on this date.
- August 01, 2023: Sections 149 to 154 of the Finance Act, 2023, will be enforced starting from this date.
Seamless Comment: The CBIC's announcement provides a clear timeline for the enforcement of various provisions within the Finance Act, 2023. By staggering the implementation dates, it allows for a more structured and organized transition to the new regulations and amendments. Businesses and individuals affected by these provisions will need to take note of the specified dates to ensure compliance and adapt to the changes effectively. This approach aids in minimizing disruptions and facilitates a smoother adjustment to the updated legal framework.
Source: https://taxinformation.cbic.gov.in/view-pdf/1009806/ENG/Notifications
On July 31, 2023, the Ministry of Finance (MoF) took a noteworthy step by issuing a notification that pertains to access to the Unified Payments Interface (UPI) for foreign nationals and Non-Resident Indians (NRIs) during their visits to India. Access to the UPI platform has been granted to foreign nationals and NRIs while they are in India, allowing them to make payments using this digital payment system during their stays.
Additionally, NRIs with international mobile numbers linked to their Non-Resident External (NRE) or Non-Resident Ordinary (NRO) accounts are now eligible to utilize UPI services, simplifying digital payments for this segment of users.
Seamless Comment: The Ministry of Finance's notification represents a significant development in enhancing digital payment accessibility for foreign nationals and NRIs visiting India. By allowing the use of UPI for transactions, the government promotes the ease of conducting financial transactions within the country. Additionally, providing UPI access to NRIs with international mobile numbers linked to their NRE/NRO accounts aligns with the broader goal of promoting digital financial services and financial inclusion. These measures are expected to simplify payment processes and contribute to the overall growth of digital payment adoption in India
Source: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1944427
Environment
In a significant move towards refining environmental regulations, the Ministry of Environment, Forest and Climate Change (MoEFCC) announced an amendment to notification No. S.O. 1533(E), dated September 14, 2006. This notification is crucial for imposing restrictions and prohibitions on new projects, activities, and the expansion or modernization of existing projects based on their potential environmental impacts.
Seamless Comment: The Ministry of Environment, Forest and Climate Change's (MoEFCC) amendment to environmental impact regulations exhibits a balanced approach to addressing environmental concerns while allowing essential infrastructure projects to proceed. These modifications reflect the government's commitment to fostering sustainable development and safeguarding the environment. By instituting compliance requirements and environmental safeguards, the MoEFCC ensures that crucial projects align with environmental goals and standards. This balanced approach paves the way for responsible and sustainable development, where the welfare of both the environment and society are considered paramount.
Source: https://egazette.gov.in/WriteReadData/2023/248436.pdf
TRAI
The Telecom Regulatory Authority of India (TRAI) issued the "Telecom Regulatory Authority of India Repealing Regulations, 2023" on July 25, 2023, to repeal the Regulation on quality of service of dial-up and leased line internet access service, 2001. This repeal is effective from the date of its notification in the Official Gazette. Additionally, leased line access services, provided by Internet Gateway Service Providers (IGSPs) to enterprises, are now typically governed by Service Level Agreements (SLAs), which ensure service quality and address the concerns of the contracting parties. As a result, the previous regulation on quality of service for dial-up and leased line internet access has become obsolete and less relevant in the current context.
Seamless Comment: TRAI's initiative to seek feedback from stakeholders through the draft Telecom Regulatory Authority of India Repealing Regulations, 2023, and considering the aspect of Ease of Doing Business (EoDB) demonstrates the regulator's commitment to ensuring relevant and up-to-date regulations in the telecommunications sector. The repeal of the outdated regulation aligns with the evolving technological landscape, enabling a more efficient and business-friendly environment in the industry.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1943145
Other key updates
The Ministry of Consumer Affairs, Food and Public Distribution's release of the Legal Metrology (Packaged Commodities) (Amendment) Rules, 2023 on August 30, 2023, marks an effort to enhance regulations regarding packaged commodities. These amendments, effective from the same date, particularly target Rule 1, which pertains to the short title and commencement of the rules. Notably, the date of commencement has been shifted from September 1, 2023, to October 1, 2023.
Seamless Comment: This amendment reflects the government's responsiveness to the evolving needs of the consumer goods industry. Shifting the commencement date by a month provides stakeholders with additional time for adjustment and compliance. It's crucial for businesses to remain aware of such regulatory changes to ensure that their products adhere to the latest standards and maintain transparency with consumers.
Source: https://egazette.gov.in/WriteReadData/2023/248432.pdf
“The National Education Policy (NEP), 2020 has envisioned that “top universities in the world will be facilitated to operate in India.” For this, “a legislative framework facilitating such entry will be put in place, and such universities will be given special dispensation regarding regulatory, governance, and content norms on par with other autonomous institutions of India.” A regulatory framework allowing the entry of higher-ranked foreign Universities, as envisaged in NEP, 2020, will provide an international dimension to higher education, enable Indian students to obtain foreign qualifications at affordable cost, and make India an attractive global study destination. These Regulations aim to facilitate the entry of foreign higher educational institutions into India.”
Seamless Comment: This will allow the universities like Oxford, Cambridge, or Harvard can now open campuses in India. All such foreign universities shall have to take UGC’s approval to set up campuses in India. The UGC will grant an initial approval for a period of 10 (ten) years. All the cross-border movement of funds will be governed by the Foreign Exchange Management Act, 1999 (FEMA), therefore making FEMA a very important legislation to comply by for the said foreign universities.
The UGC or the Indian government will have no say or control over the fee structure and the admission criteria of such universities for both Indian and overseas students, however the draft regulations do say that the fee structure should be “transparent and reasonable”.
“The Digital Personal Data Protection Act (DPDP) 2023 aims to provide for the processing of digital personal data in a manner that recognises both the right of individuals to protect their personal data and the need to process such personal data for lawful purposes, The Act is meant to limit cross-border transfers of data, penalise companies for data breaches, and provide a framework for setting up a data protection authority to ensure compliance.”
Seamless Comment: Due to the DPDP, 2023, all the companies, banks, and government agencies that are handling the government’s data are mandated to provide details about what personal information of the citizens they are collecting how they are storing and keeping it. The entities are only allowed to process online data of the citizens of India for “lawful purposes”. In case of violation or non-compliance of the regulations, a maximum penalty of Rs. 250 crores and a minimum penalty of Rs. 50 crores would be imposed on the entities.
Source: https://www.meity.gov.in/writereaddata/files/Digital%20Personal%20Data%20Protection%20Act%202023.pdf
The Mediation Bill 2023 was passed by the Rajya Sabha on 02 August 2023 and by the Lok Sabha on 07 August 2023. Upon Presidential assent, the Mediation Bill will become the Mediation Act, 2023. The bill aims “to promote and facilitate mediation” with a special focus on institutional mediation, online mediation, and community mediation in order to facilitate the resolution of disputes in a time-bound manner. The Mediation Bill also provides for enforcement of mediated settlement agreements and establishment of a regulatory body for registration of mediators and institutions.”
Seamless Comments: The bill seeks to amend the provisions governing mediation/conciliation in the Indian Contract Act 1872; the Code of Civil Procedure, 1908; the Arbitration and Conciliation Act, 1996; the Companies Act, 2013, the Consumer Protection Act, 2013, the Commercial Courts Act, 2015, etc. The bill provides for the enforceability of a Mediated Settlement Agreement which will be binding on the parties and the provisions of the Civil Procedure Code, 1908 shall be applicable to it. The bill also provides a list for the matters that are not fit for mediation which will automatically provide more clarity to the matters that are fit for mediation. The bill will be applicable to matters related to civil and commercial disputes.
Source: https://prsindia.org/files/bills_acts/bills_parliament/2021/SC%20Report_Mediation%20bill.pdf
Important Judgment
In the case of Dr. Kavita Yadav v The Secretary, Ministry of Health and Family Welfare Department & Ors, a three-judge panel of the Supreme Court, in its ruling on August 17, 2023, affirmed that a female employee who has served for 80 days in an organization is entitled to receive complete maternity benefits, regardless of whether these benefits surpass the duration of her employment contract.
Source: https://main.sci.gov.in/supremecourt/2019/40969/40969_2019_3_110_46147_Order_17-Aug-2023.pdf
Comment: In the aforementioned case, a unique circumstance arose when a woman commenced utilizing maternity benefits while still employed, but her employment concluded before she could fully utilize the benefits as per the Maternity Benefits Act (MBA). Given these circumstances, the Supreme Court's ruling, permitting the woman to access maternity benefits for the remaining period, seems equitable and in accordance with both legal provisions and the legitimate expectations of contemporary working women.
International Update
“The Unified Patent Court (UPC) has been formed on 01 June 2023 to provide a unified court system across EU member states. The unified system shall provide for a new era, covering patent protection through an EU-wide unitary patent and centralised patent litigation.”
Seamless Comment: The unitary patent system offers comprehensive patent protection across all participating states, streamlining the process through a single registration without the requirement for national validation. Alongside this, the Unified Patent Court (UPC) will serve as a centralized hub for patent litigation across a substantial portion of Europe.The UPC, a newly established European court, will hold exclusive jurisdiction over disputes concerning the infringement and validity of unitary patents and traditional European patents within participating member states that have not chosen to "opt out" of this innovative system. It's important to note that the UPC will not handle cases related to national patents, preserving the separate landscape for national patent litigation.
Source: https://ec.europa.eu/
“The UK Government has recently revised its technical guidance pertaining to the registration and verification process within the Register of Overseas Entities (ROE).”
Seamless Comment: This regulatory framework mandates that overseas entities holding specific categories of real estate in the UK must complete registration on the ROE platform, including the disclosure of beneficial owners' information and, in certain instances, details of managing officers and any trusts within their corporate structure. It is essential to note that this guidance, while informative, does not possess legal authority but serves to articulate the Government's stance regarding the ROE system.
The Government of Singapore has accepted the final set of recommendations by the Tripartite Committee on Workplace Fairness for the Workplace Fairness Legislation (WFL). WFL will strengthen protections against discrimination and provide assurance to workers that they can come forward to report without fear of retaliation. WFL will also ensure that employees and jobseekers have fair access to job opportunities.
Seamless Comment: The objective of the Workplace Fairness Legislation (WFL) in Singapore is to enhance the country's inclusive workplace environment while safeguarding the rights of workers facing discrimination. It's crucial to recognize that legislation alone cannot address all challenges. Education plays a vital role in dispelling stereotypes, fostering inclusive attitudes, and upholding equitable employment standards. Therefore, it is essential for employers, employees, and society to collaboratively contribute to the creation of more equitable and harmonious workplaces. The Government will maintain a strong partnership with Tripartite Partners to put the recommendations into action in 2024.
July 2023
Key Labour Law / Employee welfare
The Ministry of Labour & Employment issued a clarification dated 27th July 2023 on the significant aspects of the e-Shram portal, which was launched on August 26, 2021. The portal aims to register unorganised workers and provide them with a Universal Account Number (UAN). The e-Shram portal captures vital worker details and has been integrated with various platforms, including the National Career Service (NCS), Pradhan Mantri Shram-yogi Maandhan (PM-SYM) pension scheme, and Skill India Digital portal, to facilitate job opportunities, pension benefits, and skill enhancement programs.
Seamless Comment: The initiative offers digital training through the DigiSaksham Programme for registered workers. The Ministry's clarification encourages unorganised workers to take advantage of the diverse benefits and support available through the e-Shram portal.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1943207
On July 27, 2023, the Ministry of Labour & Employment issued eligibility conditions for availing benefits under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996. According to the Act, any building worker who has completed eighteen years of age but not yet sixty, and has engaged in building or construction work for at least ninety days in the previous twelve months, is eligible for registration as a beneficiary in the State Welfare Boards under this Act. These eligibility provisions remain unchanged.
Seamless Comment: To simplify the registration/enrolment process, the Model Welfare Scheme outlined provisions such as allotting Unique Identification Numbers to registered BOC workers, delegating/appointing competent officers at the local/municipal/panchayat level, allowing self-certification, holding regular camps, creating facilitation centres at labor chowks/addas, and issuing ID cards to BOC workers. These measures aim to streamline the process and extend welfare benefits to eligible workers efficiently.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1943204
Employees State Insurance Corporation, through a notification dated 25th July 2023, has introduced the Vivad Se Vishwas I- Relief for MSME Scheme. Under this scheme, eligible Micro, Small, and Medium Enterprises (MSMEs) can avail relief for certain financial aspects during the COVID period. The relief provided includes the refund of Liquidated Damage (LD) imposed on MSMEs for delays in supplying goods or services and the refund of Performance Security/Bid
Seamless Comment: The ESIC's introduction of the Vivad Se Vishwas I- Relief for MSME Scheme is a commendable measure aimed at supporting MSMEs during the challenging period of the COVID pandemic. By providing relief on Liquidated Damage and Performance Security/Bid Security, the scheme eases financial burdens on eligible MSMEs and encourages them to recover from setbacks caused by the pandemic.
Source: https://www.esic.gov.in/attachments/circularfile/08291374d4cb2871965d89c6d7f5fe48.pdf
The Ministry of Labour & Employment (MoL&E) issued a notification on July 31, 2023, regarding the provision of social security benefits to gig workers. The notification introduces four labour codes that aim to enhance protections for workers, including those who are not organised, by establishing legal minimum wages, social security measures, and healthcare benefits. The codes define various categories of workers, such as "employee," "gig worker," "platform worker," "unorganised worker," and others, with the intention of covering all forms of employment, traditional and non-traditional alike.
Seamless Comment: The issuance of this notification by the Ministry of Labour & Employment is a significant step towards enhancing the welfare of gig workers and providing them with social security benefits. Including gig and platform workers in the Code on Social Security, 2020 ensures that they receive vital protections such as life and disability insurance, accident insurance, health and maternity benefits, and old age protection. Establishing a Social Security Fund, with contributions from aggregators, further ensures financial support for gig workers. By recognizing the diverse forms of employment and addressing their social security needs, this initiative promotes fair and inclusive labour practices, contributing to a more equitable workforce and fostering economic stability.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1944372
On 12th July 2023, the Ministry of Statistics & Programme Implementation issued the Consumer Price Index (CPI) Numbers for the Month of June 2023. The next release date for the CPI for July 2023 is scheduled for 14th August 2023. It is important to note that the CPI plays a significant role in determining various economic aspects, including the revision of minimum wages and variable dearness allowance
Seamless Comment: The CPI is an important economic indicator that measures the changes in the prices of a basket of goods and services commonly consumed by households. The revised CPI for June 2023 has been announced, reflecting the new inflation rates and providing insights into the current economic conditions.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1938980
Key Announcements by RBI
On July 04, 2023, the Reserve Bank of India (RBI) issued clarifications for implementing Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005. The RBI has highlighted that the Ministry of External Affairs (MEA), Government of India, has published the Consolidated Lists of UNSC Designated / Sanctioned Individuals and Entities under the UNSC Resolutions related to non-proliferation on the Democratic People’s Republic of Korea (DPRK) and Iran.As per the clarifications, entities regulated by the RBI are required to avoid any transactions with the sanctioned individuals and entities listed in the Consolidated Lists. Strict compliance with the Act is mandated to ensure adherence to the sanctions imposed under the relevant UNSC Resolutions.
Seamless Comment: The RBI's publication of clarifications on the Implementation of Weapons of Mass Destruction Act, 2005, underscores the importance of robust compliance measures by entities under its regulation. By providing information about the Consolidated Lists of UNSC Designated / Sanctioned Individuals and Entities related to non-proliferation on DPRK and Iran, the RBI aims to prevent any unauthorized financial transactions with sanctioned parties. Adhering to these guidelines is crucial for promoting international security and upholding India's commitments under the UNSC Resolutions.
Source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12521&Mode=0
The International Financial Services Centres Authority (IFSCA) issued a notification on July 5, 2023, providing clarification to entities making fee remittances to the IFSCA in Indian Rupees (INR). According to the notification, the applicable RBI reference rate on the date of the remittance will be used for calculating the fees payable to the IFSCA.Entities remitting fees to the IFSCA are required to refer to the RBI reference rate available at https://www.rbi.org.in/scripts/ReferenceRateArchive.aspx to determine the exchange rate applicable to their remittance on the specific date.
Seamless Comment: Entities operating within IFSCs can now confidently remit fees, knowing that the applicable exchange rates are officially recognized and readily available on the RBI website. Overall, this notification enhances the ease of doing business within the IFSCs and contributes to their growing prominence as global financial hubs.
Key Corporate Law Updates
The Ministry of Corporate Affairs (MCA) has issued a notification on 12th July 2023, addressing the issue of multiple user IDs created by members of the Institute of Chartered Accountants of India (ICAI), Institute of Cost Accountants of India (ICAI), and Institute of Company Secretaries of India (ICSI) while transacting on the existing MCA21 V2 portal. In order to streamline the user accounts and facilitate a more efficient process, the MCA has directed that members with multiple existing user IDs may approach their respective institutes with their credentials. The institutes, namely ICAI, ICAI, and ICSI, will then make recommendations for merging multiple user IDs with the ID created in the V3 portal or for deactivating the old user IDs in V2. This will enable members to create a new user ID in the V3 portal.
Seamless Comment: By addressing the issue of multiple user IDs, the MCA aims to enhance user convenience and efficiency while transacting on the portal. Consolidating multiple user IDs into a single user ID in the V3 portal will lead to better management and a more seamless experience for members of ICAI, ICAI, and ICSI.
Source: https://www.mca.gov.in/bin/dms/getdocument?mds=lPgXWqVdrvG%252FOTWP8QcM%252Bw%253D%253D&type=open
The Ministry of Corporate Affairs has announced that the Beta Version of Master Data Services V-3 will be launched on 9th July 2023. This version is intended for testing purposes only and stakeholders are advised not to use it for any statutory or legal purposes. The existing V-2 Master Data Services will continue to be available for stakeholders alongside the new Beta Version. The launch of V-3 reflects the Ministry's commitment to improving services and adopting technological advancements in the corporate sector, providing stakeholders with an opportunity to explore new features and functionalities.
Seamless Comment: Introducing the Beta Version of Master Data Services V-3 by the Ministry of Corporate Affairs is a positive step towards modernizing their systems and facilitating stakeholders with better services. It allows stakeholders to test and provide feedback for further refinements before full implementation. However, stakeholders should be cautious and adhere to the Ministry's guidance not to utilise the Beta Version for any legal or statutory purposes, ensuring compliance with established regulations.
Source: https://www.mca.gov.in/content/mca/global/en/home.html
Taxation (State and Central)
The Central Government issued the Income-tax (Tenth Amendment) Rules, 2023 on June 21, 2023. These amended rules introduce a new procedure to opt for the new tax regime, which was introduced by the Finance Act, 2020 through the insertion of a new Section 115BAC. The new tax regime allows individuals, HUFs, and both resident and non-resident taxpayers to avail lower tax rates compared to existing slab rates. However, in exchange, taxpayers need to forego around 70 exemptions and deductions currently available. This optional scheme is applicable from Assessment Year 2021-22 onwards. To opt for the new tax regime, taxpayers are required to file Form No. 10-IEA as per Section 115BAC. The form can be filed electronically using a digital signature or electronic verification code. The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) will specify the procedure for filing the form and ensure appropriate security measures.
Source: https://incometaxindia.gov.in/communications/notification/notification-43-2023.pdf
Seamless Comment: The issuance of the Income-tax (Tenth Amendment) Rules, 2023 by the Central Government marks the introduction of a new tax regime. Taxpayers now have the option to choose between the new regime, offering lower rates but fewer exemptions and deductions, and the existing system. The amendment also outlines the procedure for opting into the new regime through the filing of Form No. 10-IEA. The responsible officers are tasked with formulating and implementing the necessary protocols for a smooth transition.
The Government of Maharashtra issued a notification on 28th July, 2023, introducing a bill to further amend the Maharashtra Goods and Services Tax Act, 2017. The proposed amendments seek to bring changes to several aspects of the Act. These amendments are designed to simplify compliance procedures, enhance ease of doing business, and promote better utilization of input tax credit.
Seamless Comment: The introduction of time limits for furnishing details of outward supplies and filing returns is likely to enhance compliance efficiency and encourage timely filing of returns. The provision allowing the government to grant exceptions, based on Council recommendations and subject to specified conditions, provides flexibility while ensuring compliance.
Source: https://www.mahagst.gov.in/sites/default/files/MAHARASHTRA%20ACT%20NO.XXXII%20of%202023..pdf
The Government of Karnataka issued a notification on 18th July, 2023, introducing the Karasamadhana Scheme, 2023. The scheme is designed to efficiently resolve pre-GST legacy tax disputes and facilitate the prompt collection of arrears without resorting to litigation. Here are the key features of the scheme. One of the notable features of the scheme is the waiver of penalty and interest under various Acts, including the Karnataka Sales Tax Act, 1957, the Karnataka Value Added Tax Act, 2003, and the Central Sales Tax Act, 1956. The scheme covers assessments, re-assessments, rectifications, revisions, and appeal orders, thereby providing a comprehensive solution for pending disputes.
Seamless Comment: The Karasamadhana Scheme, 2023, presents a favorable opportunity for eligible dealers and taxpayers in Karnataka to regularize their tax liabilities and clear pending disputes. It not only fosters an environment of trust and compliance but also aligns with the principles of ease of doing business and taxpayer-friendly initiatives.
Source: https://gst.kar.nic.in/latestupdates/karasamadhana202319723.pdf
The Government of Karnataka issued a notification on 13th July, 2023, introducing a range of tax exemptions under the Karnataka Tax on Professions, Trades, Callings, and Employments Act, 1976. The exemptions target various categories of individuals and entities, aiming to support different sectors and encourage socio-economic growth in the state.
Seamless Comment: By providing tax relief to small-scale entrepreneurs in the transport sector and individuals operating taxi services, the government aims to boost local businesses and encourage economic growth. Additionally, the exemptions offered to physically challenged individuals, families with single children who have undergone sterilisation, former servicemen, and personnel from security forces acknowledge their contributions and provide financial support. The incentives for educational institutions, language institutes, and foreign technicians attract skilled professionals and promote education at all levels
On January 13, 2023, the Government of Karnataka issued the Karnataka Goods and Services Tax (Amendment) Rules, 2023, revising the Karnataka Goods and Services Tax Rules, 2017. Effective from December 01, 2022, key amendments include the removal of Anti-Profiteering Rules 122, 124, and 125 from Chapter XV. Rule 127 has been modified, substituting "Duties of the Authority" with "Functions of the Authority." Rules 134 and 137 have been removed. Within Chapter XV, the "Anti-Profiteering" section's Explanation has been updated, replacing item (a) and related entries with a new definition for "Authority" as per section 171(2) of the Act.
Seamless Comment: The recent legal update from January 13, 2023, showcases the Karnataka Government's proactive approach to enhancing the effectiveness of the Goods and Services Tax (GST) framework. By publishing the Karnataka Goods and Services Tax (Amendment) Rules, 2023, the government aims to refine the existing rules for better clarity and operational efficiency. Notable amendments include the removal of specific Anti-Profiteering Rules and adjusting Rule 127, emphasizing the Authority's functions. These changes align with the ongoing efforts to optimise the GST structure and administration, facilitating smoother compliance and implementation across the state.
Source: https://kla.kar.nic.in/assembly/bills/bill1611_06.pdf
The Central Government, through a notification dated 17th July, 2023, has extended the timeline under notification No. 07/2023 dated 31st March, 2023. According to the revised timeline, registered persons who failed to furnish the GSTR 3B return by the due date for any of the financial years 2017-18, 2018-19, 2019-20, 2020-21, or 2021-22, but furnished the said return between the period from the 1st day of April, 2023, to the 31st day of August, 2023, shall have the total amount of late fee waived, provided it is in excess of ten thousand rupees.
Seamless Comment: The recent notification by the Central Government offering an extension to the timeline for waiver of late fee in GSTR 3B return is a welcome relief for registered taxpayers. The waiver of late fee in excess of ten thousand rupees for those who furnish the return between the specified period encourages compliance and provides an opportunity for businesses to rectify their past filing omissions without incurring substantial penalties.
Source: https://taxinformation.cbic.gov.in/view-pdf/1009779/ENG/Notifications
On 18th July, 2023, the Central Board of Indirect Taxes issued the Income-tax (Thirteenth Amendment) Rules, 2023. The amendment introduces a provision exempting the reporting of certain property under the head of "Income from other sources." Specifically, any movable property, such as shares or units or interest in the resultant fund, received by the fund management entity of the resultant fund, in lieu of shares or units or interest held by the investment manager entity in the original fund, need not be reported as income from other sources.
Seamless Comment: The Income-tax (Thirteenth Amendment) Rules, 2023, introduced by the Central Board of Indirect Taxes, bring forth a significant provision that streamlines the reporting of certain movable properties. By exempting the reporting of property received by the fund management entity in lieu of shares or units or interest in the res'ultant fund, the amendment aims to simplify tax reporting procedures for relevant entities.
Source:
https://egazette.gov.in/(S(jfcch1fehie13n1kknmnel1e))/RecentUploads.aspx?Category=6
The Central Board of Direct Taxes (CBDT) has issued a circular on 12th July 2023, providing clarification regarding the taxability of income earned by a non-resident investor from off-shore investments in investment funds routed through an Alternative Investment Fund (AIF). According to the circular, the income tax exemption under section 115UB of the Income Tax Act, which pertains to taxation of income from AIFs, shall apply only to income earned by a non-resident investor from off-shore investments in investment funds routed through Category I or Category II AIFs regulated by the Securities and Exchange Board of India (SEBI) or the International Financial Services Centers Authority (IFSCA).
Seamless Comment: The circular specifies that the tax exemption under section 115UB of the Income Tax Act is applicable only to income earned through Category I or Category II AIFs regulated by SEBI or IFSCA. This move is likely to have an impact on non-resident investors who had investments in AIFs through other routes. It is important for investors and fund managers to carefully review their investments and consider the implications of this clarification to ensure compliance with tax regulations.
Source: https://incometaxindia.gov.in/communications/circular/circular-no-12-2023.pdf
The Commercial Taxes Department of Puducherry has issued a notification on 05th July 2023, amending the applicability of e-invoicing under the Puducherry Goods and Services Tax (GST) Act, 2017. The amended notification is set to come into effect from 1st August 2023.As per the revised notification, the requirement for e-invoicing will now apply to registered persons with an aggregate turnover exceeding five crore rupees.
Seamless Comment: While this amendment will bring relief to smaller businesses with turnover below the prescribed threshold, it will also pose a compliance challenge for larger taxpayers. The businesses falling under the ambit of this notification will need to upgrade their invoicing systems and align their processes to comply with the e-invoicing requirements by the effective date.
The Government of National Capital Territory (NCT) Delhi has issued a notification on 03rd July 2023, providing relief to registered persons who fail to furnish the Form GSTR 9 by the due date for financial years 2017-18 to 2021-22. According to the notification, if these registered persons file the said return between 1st April 2023 and 30th June 2023, the total amount of late fee payable in excess of ten thousand rupees shall be waived.
Additionally, the notification outlines late fee relaxations for subsequent financial years, starting from 2022-2023. For registered persons with an aggregate turnover of up to five crore rupees, the late fee will be twenty-five rupees per day, capped at 0.02% of turnover in the respective State or Union territory. For those with an aggregate turnover of more than five crore rupees and up to twenty crore rupees, the late fee will be fifty rupees per day, subject to the same maximum amount calculation.
Seamless Comment: The notification issued by the Government of NCT Delhi regarding the waiver of late fee for filing Form GSTR 9 for the specified financial years is a welcome relief for taxpayers. Late fee waivers serve as an incentive for taxpayers to comply with the tax-filing requirements within the extended deadline, mitigating the burden of hefty fines and penalties for delayed filings.
Source: http://it.delhigovt.nic.in/writereaddata/egaz202355847.pdf
The National Capital Territory of Delhi has revised the GST payment process for Goods Transport Agencies (GTAs) starting new businesses or crossing the registration threshold. Now, GTAs have the option to pay GST on services supplied during the financial year by making a declaration in Annexure V. The declaration must be submitted within 45 days of applying for GST registration or one month from obtaining registration, whichever is later. This update offers greater flexibility and convenience for GTAs while ensuring timely compliance.
Seamless Comment: The revised process for GST payment by Goods Transport Agencies (GTAs) commencing new businesses or crossing the registration threshold in the National Capital Territory of Delhi offers a pragmatic approach to managing GST liabilities. By leveraging the option to declare and pay GST on the services provided during the financial year, GTAs can navigate their tax obligations more efficiently. As with any regulatory update, timely compliance remains crucial to avoid any unnecessary penalties or interest.
Source: http://it.delhigovt.nic.in/writereaddata/egaz202355848.pdf
The Central Board of Direct Taxes (CBDT) has issued a circular dated 30th June 2023, providing clarity on Tax Collected at Source (TCS) rates under the Liberalised Remittance Scheme (LRS). According to the circular, there shall be no TCS on the first Rs. 7 lakh remittance under LRS. However, for amounts exceeding this threshold, TCS will be applicable at different rates depending on the purpose of the remittance.
Seamless Comment: The CBDT's clarification on the TCS threshold for remittances under LRS is a welcome step for individuals and businesses engaging in foreign transactions. The circular provides clear guidelines on the applicability of TCS rates, easing compliance for taxpayers. Additionally, the published FAQs address common queries and offer further insights into the LRS provisions, providing much-needed clarity for taxpayers and authorized dealers. This update ensures a more transparent and smooth process for remittances under LRS while encouraging the legitimate flow of funds for education, medical treatment, and other purposes.
Source: https://incometaxindia.gov.in/communications/circular/circular-10-2023.pdf
The Goods and Services Tax Network (GSTN) has launched an Online functionality on June 29, 2023, allowing taxpayers to explain differences between GSTR-1 & 3B returns. If the declared liability exceeds the paid liability by a defined limit or percentage, taxpayers will receive an intimation in the form of DRC 01B. They can then file a reply in Form DRC-01B Part B, providing details regarding the discrepancy.
Seamless Comment: The introduction of the Online functionality by GSTN streamlines the process of resolving discrepancies in GSTR-1 & 3B returns. This user-friendly feature enables prompt and accurate rectification, fostering tax compliance and transparency. It is expected to enhance the efficiency of the GST system and improve communication between taxpayers and authorities.
On June 30, 2023, the Government of the National Capital Territory of Delhi issued a notification granting a waiver for the late fee associated with the submission of the final return in Form GSTR-10 under the Delhi Goods and Services Tax Act, 2017, if it exceeds five hundred rupees.The waiver applies to registered persons who missed the due date for filing the GSTR-10 return but submitted it between April 1, 2023, and June 30, 2023.
Seamless Comment: The waiver of the late fee on GSTR-10 by the Delhi Government is a welcome measure to support taxpayers who faced challenges in meeting the filing deadline. By providing relief for late filings, the government aims to encourage compliance and ease the burden on businesses during challenging times. This step is likely to improve taxpayer satisfaction and contribute to a more efficient tax administration system in Delhi.
Source: http://it.delhigovt.nic.in/writereaddata/egaz202355846.pdf
The Central Board of Indirect Taxes & Customs (CBIC) issued a notification on June 30, 2023, extending the due date for the mandatory declaration of additional qualifiers in import/export declarations. As per the prior circular dated June 7, 2023, certain plants, formulations of chemicals, and medicines required additional qualifiers to be declared in all Bills of Entry/Shipping Bills filed on or after July 1, 2023. The list of products and the specific additional declarations were provided in the circular.
Seamless Comment: The extension of the due date for mandatory declaration of additional qualifiers in import/export declarations by CBIC is a practical step to provide businesses with sufficient time for compliance. By pushing the deadline to October 1, 2023, CBIC acknowledges the importance of smooth implementation and understanding of the additional declaration requirements for certain products. This extension is likely to reduce potential disruptions in trade operations and promote efficiency in customs clearance procedures. Importers and exporters now have more time to prepare and adapt to the new requirements, which can help facilitate trade and boost overall supply chain operations.
Source: https://taxinformation.cbic.gov.in/view-pdf/1003165/ENG/Circulars
The Income-Tax Department has been actively encouraging voluntary compliance among taxpayers. To achieve this, the Department receives financial transaction information from Reporting Entities, including Banks, Forex Dealers, and Sub-Registrars. This data is then displayed to the taxpayers through their e-filing accounts in the form of the Annual Information Statement (AIS). This step aims to facilitate accurate filing of Income Tax Returns.
Seamless Comment: The Income-Tax Department is actively encouraging voluntary compliance by receiving financial transaction information from Reporting Entities and displaying it to taxpayers through the Annual Information Statement (AIS). While most entities comply, defaults have been noticed in some cases. To address this, the Department is verifying reporting entities and organizing outreach programs to facilitate ease of compliance.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1936490
The Income-Tax Department has been actively encouraging voluntary compliance among taxpayers. To achieve this, the Department receives financial transaction information from Reporting Entities, including Banks, Forex Dealers, and Sub-Registrars. This data is then displayed to the taxpayers through their e-filing accounts in the form of the Annual Information Statement (AIS). This step aims to facilitate accurate filing of Income Tax Returns.
Seamless Comment: The Income-Tax Department is actively encouraging voluntary compliance by receiving financial transaction information from Reporting Entities and displaying it to taxpayers through the Annual Information Statement (AIS). While most entities comply, defaults have been noticed in some cases. To address this, the Department is verifying reporting entities and organizing outreach programs to facilitate ease of compliance.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1936490
Key Environment Laws Updates
On July 27, 2023, the Ministry of Power issued a press release regarding the compliance to emission norms for all Thermal Power Plants. As per the notification by the Ministry of Environment, Forest and Climate Change (MoEF&CC) and directions by the Central Pollution Control Board (CPCB), all Thermal Power Plants are required to adhere to the specified emission norms. To comply with the Sulphur dioxide (SO2) emission norms, Thermal Power Plants are installing Flue Gas Desulphurisation (FGD) equipment. The MoEF&CC has provided specific timelines for SO2 compliance based on the location of the plants.For non-compliance beyond the specified timelines, the MoEF&CC has prescribed environment compensation on the non-retiring thermal power plants.
Seamless Comment: The prescribed timelines and provision for environmental compensation highlight the urgency and accountability in ensuring cleaner and greener power generation. This notification signifies a positive stride towards a healthier and more environmentally responsible future.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1943363
The Ministry of Environment, Forest and Climate Change (MoEF&CC) has issued important clarifications regarding the management of E-waste. In November 2022, the MoEF&CC comprehensively revised the existing Rules and introduced the E-Waste (Management) Rules, 2022, which became enforceable from 1st April 2023. These new rules aim to address the proper management of e-waste in an environmentally sound manner and establish an improved Extended Producer Responsibility (EPR) regime for e-waste recycling. As per the EPR regime, all manufacturers, producers, refurbishers, and recyclers are mandated to register on the portal developed by the Central Pollution Control Board (CPCB).
Seamless Comment: The introduction of these new provisions is expected to facilitate the transition of the informal sector to the formal sector, ensuring that e-waste is processed and recycled responsibly. Additionally, the rules include provisions for environmental compensation and verification & audit processes to ensure compliance with the regulations. The overarching goal of the rules is to promote a Circular Economy through the EPR regime and encourage the scientific recycling and proper disposal of e-waste.
Seamless's Comment: https://pib.gov.in/PressReleasePage.aspx?PRID=1943201
The Ministry of Environment, Forest and Climate Change (MoEF&CC) took a significant step on 27th June, 2023, by launching Environmental Compensation Funds for Battery Waste Management. Under the Battery Waste Management Rules, 2022, recyclers and refurbishers are directed to submit quarterly returns, providing detailed information on the quantity of waste batteries collected or received from various producers or entities, quantities recycled/refurbished, hazardous waste generated, and disposal details. The quarterly returns must be filed by the end of the following month after the end of the quarter. The Battery Waste Management Rules, 2022, were notified on 22nd August, 2022. As part of the Extended Producer Responsibility, recyclers, and refurbishers have an obligation to file their annual returns by 30th June, 2023, for fulfilling their responsibilities in the financial year 2022-23.
Seamless Comment: By directing recyclers and refurbishers to submit quarterly returns on their waste management activities, the government aims to monitor and ensure proper disposal and recycling of waste batteries.Utilizing the collected environmental compensation funds for the management of uncollected and non-recycled or non-refurbished waste batteries is a crucial step towards incentivizing and supporting environmentally responsible practices in the industry.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1943206
The Central Pollution Control Board (CPCB) has introduced a revised methodology for classifying industrial sectors and other polluting activities in the document titled "Draft Classification of Industrial Sectors into Red, Orange, Green, and White Categories: A Tool for Progressive Environmental Management." The draft report was published on 24th July, 2023. CPCB has asked for comments from the public on the draft classification and he deadline for submitting comments until 31st August 2023 ensures ample time for thorough and meaningful contributions from concerned parties.
Seamless Comment: The consideration of weightages for the scale of operations and the adoption of cleaner technologies and fuels reinforces the board's objective of promoting environmentally friendly practices among industries. By inviting public feedback and stakeholder inputs, the CPCB displays transparency and inclusivity in the decision-making process.
Source: https://cpcb.nic.in/openpdffile.php?id=TGF0ZXN0RmlsZS8zNzdfMTY5MDI2Mjg1OV9tZWRpYXBob3RvMjk0MjIucGRm
The Central Pollution Control Board (CPCB) has released the prescribed format for submitting details of confirmed purchase or supply orders for genset or genset engines on July 4, 2023.
Seamless Comment: The publication of the format for submission of confirmed purchase or supply orders by the CPCB is a significant development in ensuring compliance with revised standards for genset and genset engines. By providing the format, the CPCB aims to streamline the process for manufacturers and suppliers to report their orders, as required by the Ministry of Environment, Forests and Climate Change (MoEFCC). Compliance with the submission deadline of July 31, 2023, is crucial for manufacturers and suppliers to be eligible for exemptions from the revised standards. This update highlights the government's efforts to regulate and control emissions from gensets and genset engines, contributing to a cleaner and more sustainable environment.
Source: https://cpcb.nic.in/openpdffile.php?id=TGF0ZXN0RmlsZS8zNzZfMTY4ODUzMzAwNF9tZWRpYXBob3RvMzIzNjMucGRm
The Central Pollution Control Board (CPCB) has taken a strict stance on enforcing the Plastic Waste Management Rules, 2016, and has issued show cause notices to 479 Brand Owners. The notices were issued after discovering that certain transactions were conducted with unregistered Brand Owners, which is in violation of the Guidelines for Extended Producer Responsibility for Plastic Packaging issued by the Ministry of Environment, Forests and Climate Change (MoEFCC) on 16th February, 2022.
Seamless Comment: The issuance of show cause notices by the CPCB to 479 Brand Owners sends a strong message regarding the importance of complying with the Plastic Waste Management Rules and the Guidelines for Extended Producer Responsibility for Plastic Packaging. It highlights the significance of responsible waste management practices and adherence to regulatory requirements to curb plastic pollution. Brand Owners and other relevant entities should take prompt action to register themselves on the EPR portal to avoid potential closure operations and environmental compensation for non-compliance. This move by the CPCB demonstrates the authorities' commitment to environmental conservation and sustainable waste management practices.
Source: https://eprplastic.cpcb.gov.in/plastic/downloads/SCN%20to%20unregistered%20Brand%20Owners.pdf
TRAI
The Telecom Regulatory Authority of India (TRAI) issued the "Telecom Regulatory Authority of India Repealing Regulations, 2023" on July 25, 2023, to repeal the Regulation on quality of service of dial-up and leased line internet access service, 2001. This repeal is effective from the date of its notification in the Official Gazette. Additionally, leased line access services, provided by Internet Gateway Service Providers (IGSPs) to enterprises, are now typically governed by Service Level Agreements (SLAs), which ensure service quality and address the concerns of the contracting parties. As a result, the previous regulation on quality of service for dial-up and leased line internet access has become obsolete and less relevant in the current context.
Seamless Comment: TRAI's initiative to seek feedback from stakeholders through the draft Telecom Regulatory Authority of India Repealing Regulations, 2023, and considering the aspect of Ease of Doing Business (EoDB) demonstrates the regulator's commitment to ensuring relevant and up-to-date regulations in the telecommunications sector. The repeal of the outdated regulation aligns with the evolving technological landscape, enabling a more efficient and business-friendly environment in the industry.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1943145
Other key updates
The government of Karnataka issued a notification on 18th July, 2023, introducing a Bill to further amend the Karnataka Co-operative Societies Act, 1959. The proposed amendment aims to introduce a new section that allows for the constitution of a common cadre for employees of specific classes of co-operative societies
Seamless Comment: The proposed amendment to the Karnataka Co-operative Societies Act, 1959, to create a common cadre for certain classes of co-operative societies is a significant step towards streamlining the management and administration of these societies. By empowering the Registrar to constitute a common cadre, the government seeks to promote efficiency, uniformity, and transparency in the functioning of co-operative societies.
Source: https://kla.kar.nic.in/assembly/bills/bill1611_12.pdf
The Ministry of Commerce & Industry has issued a press release on 21st July, 2023, providing clarification on the Intellectual Property Rights Policy Management (IPRPM) framework, which encompasses eight types of intellectual property rights. The National IPR Policy 2016 aims to consolidate all IPRs into a unified vision document and establish an institutional mechanism for the implementation, monitoring, and review of IP laws.
Seamless Comment: The clarification issued by the Ministry of Commerce & Industry on the Intellectual Property Rights Policy Management framework highlights the government's efforts to streamline and strengthen the management of various intellectual property rights in India. By consolidating multiple IP laws and providing a comprehensive institutional mechanism for their implementation, the National IPR Policy 2016 promotes a conducive environment for innovation and creativity.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1941489
The Ministry of Consumer Affairs, Food and Public Distribution has issued a notice to clarify the applicability of the Legal Metrology (Packaged Commodities) Rules, 2011 in respect of Medical Devices.The exemption provided for commodities containing scheduled or non-scheduled formulations under the Drugs (Price Control) Order, 2013, is essential for pharmaceutical products. However, the absence of a similar exemption for medical devices declared as drugs required clarification, and this notice addresses that concern.
Seamless Comment: Overall, this legal update brings clarity to the applicability of the Legal Metrology Rules to medical devices and emphasizes the need for compliance with price control regulations to protect consumers' interests and promote a well-regulated market for essential commodities.
The Indian Government has introduced key amendments to the Fertiliser (Inorganic, Organic, or Mixed) (Control) Order, 1985, with immediate effect. The modified Order specifically targets the regulation of Fermented Organic Manure and Liquid Fermented Organic Manure to enhance their effectiveness and application in agricultural practices.
Seamless Comment: The introduction of amendments to the Fertiliser (Control) Order, 1985, by the Indian Government reflects its commitment to promoting sustainable and organic agricultural practices. By regulating the production and usage of Fermented Organic Manure and Liquid Fermented Organic Manure, the government aims to bolster the use of these organic fertilisers and their positive impact on crop yields and soil health.
Source: https://egazette.gov.in/WriteReadData/2023/247464.pdf
The government of Karnataka issued a notification on 18th July, 2023, introducing a Bill to further amend the Registration Act, 1908. The proposed amendment aims to address issues related to forged documents, prohibited transactions, and the process for cancellation of registered documents when required.
Seamless Comment: Overall, the proposed amendments to the Registration Act, 1908, demonstrate the government's commitment to ensuring the efficiency, integrity, and transparency of the registration process in Karnataka. If implemented effectively, these amendments will contribute to building trust in the registration system, promoting confidence among stakeholders, and deterring fraudulent practices in property transactions.
The government of Karnataka issued a notification on 18th July, 2023, introducing a Bill to further amend the Karnataka Co-operative Societies Act, 1959. The proposed amendment aims to introduce a new section that allows for the constitution of a common cadre for employees of specific classes of co-operative societies
Seamless Comment: The proposed amendment to the Karnataka Co-operative Societies Act, 1959, to create a common cadre for certain classes of co-operative societies is a significant step towards streamlining the management and administration of these societies. By empowering the Registrar to constitute a common cadre, the government seeks to promote efficiency, uniformity, and transparency in the functioning of co-operative societies.
Source: https://kla.kar.nic.in/assembly/bills/bill1611_12.pdf
The Government of Maharashtra has issued a notification on 18th July, 2023, introducing the Maharashtra Industry, Trade, and Investment Facilitation Act, 2023. The Act came into force on 3rd July, 2023, with the following objectives in mind:
- To establish an effective Single Window System for delivering services related to permissions required for establishing and operating industries.
- To enhance the state's competitiveness in trade and investments.
- To develop an ecosystem ensuring Ease of Doing Business, including a grievance redressal mechanism in the state.
- To create and maintain a portal providing all necessary information required for investment in Maharashtra and related matters
Seamless Comment: By establishing a Single Window System, the Act aims to streamline the process of obtaining necessary permissions for setting up and operating industries, thereby reducing bureaucratic hurdles and encouraging entrepreneurship.
Source: https://prsindia.org/files/bills_acts/bills_states/maharashtra/2023/Bill4of2023MH.pdf
The Ministerial meeting of the U.S.-India Strategic Clean Energy Partnership (SCEP) was convened in New Delhi on 18th July, 2023. The meeting marked the significant achievements of the SCEP in enhancing energy security, promoting clean energy innovation, and driving sustainable development. The partnership has played a crucial role in facilitating commercial collaborations between the two nations and has witnessed substantial growth in energy trade, further strengthening bilateral ties.
Seamless Comment: The U.S.-India Strategic Clean Energy Partnership (SCEP) has emerged as a transformative alliance, harnessing the power of clean energy to foster environmental sustainability and economic growth.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1940523
The Central Government, in collaboration with the Bureau of Energy Efficiency (BEE), has introduced energy consumption norms and standards for designated consumers for the period from 2023-24 to 2025-26. These norms aim to regulate and enhance energy consumption practices across various sectors. The notification for these norms was issued on 27th June, 2023.
Seamless Comment: The establishment of energy consumption norms and standards for designated consumers is a crucial step towards promoting energy efficiency and sustainability. By setting specific targets for energy consumption, the government aims to drive positive changes in the way various sectors utilize energy resources. Compliance with these norms will encourage designated consumers to adopt energy-efficient practices, technologies, and solutions, leading to reduced environmental impact and increased cost savings. The implementation of these norms will play a vital role in achieving national energy efficiency goals and fostering a greener and more sustainable future.
Source: https://legalitysimplified.com/wp-content/uploads/2023/06/PAT-cycle.pdf
The National Designated Authority for the Implementation of Article 6 of the Paris Agreement (NDAIAPA) has issued a notice on June 27, 2023, notifying activities for bilateral/cooperative approaches in India under Article 6.2 Mechanism of the Paris Agreement. Article 6 of the Paris Agreement focuses on carbon trading through bilateral/cooperative approaches and international market mechanisms.
Seamless Comment: The notification of activities by NDAIAPA under Article 6.2 of the Paris Agreement marks a significant step towards promoting carbon trading and sustainable practices in India. By listing various eligible activities, the government aims to encourage the adoption and transfer of emerging technologies while mobilizing international finance. These efforts align with India's commitment to combat climate change and promote environmentally friendly initiatives. The notification provides a framework for carbon credit trading, which can support India's transition towards a greener and more sustainable economy.
The Department of Telecommunications (DoT) has introduced the Bharat 6G Alliance (B6GA) through a press release on June 3, 2023. B6GA's primary objective is to promote collaboration and innovation in Next-Generation Wireless Technology, particularly 6G. The alliance aims to understand the business and societal needs of 6G, drive open research and development (R&D) initiatives, and accelerate the deployment of 6G technologies in India.
Seamless Comment: By bringing together startups, companies, and the manufacturing ecosystem, B6GA aims to establish consortia that will contribute to making India a global leader in 6G technology. The alliance also focuses on fostering technology co-innovation, boosting indigenous manufacturing, reducing imports, and increasing the creation of Intellectual Property in the country.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1937088
The Bureau of Indian Standards (BIS) has recently issued revised versions of 33 standards for textiles, alongside revised standards for Safety Devices, Air Screw Compressors, and Hot Food Cabinets. Additionally, BIS has introduced a new standard, IS 18266 : 2023, for Textiles — Medical Respirator. These updates were established on 23rd June, 2023. It is essential to note that the previous versions of these standards will stand withdrawn on 23rd July, 2023. The BIS's initiative aims to enhance product quality, safety, and innovation, ensuring compliance with the latest industry practices and promoting overall consumer satisfaction.
Seamless Comment: BIS's issuance of revised and new standards demonstrates its dedication to promoting excellence and safety in various industries. The updated textile standards hold significance in elevating the quality of textile products, benefiting both manufacturers and consumers. Furthermore, the new standard for Medical Respirators is especially relevant amid the ongoing pandemic, as it sets specific requirements for critical healthcare equipment. Businesses and stakeholders must promptly adopt and adhere to these standards to maintain industry best practices and ensure adherence to essential quality and safety measures.
Source: https://legalitysimplified.com/wp-content/uploads/2023/07/BIS-5.pdf
Important Judgment
The recent judgment by the High Court of Delhi in Dr. Sohail Malik vs. Union of India and Anr. underscores that the Sexual Harassment (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) isn't confined to intra-workplace cases. This precedent extends the Act's application to instances where delinquent employees are employed elsewhere. While offering broader protection, challenges arise in coordinating investigations across different workplaces and ensuring uniform implementation of the Act's recommendations. Clarity from the legislature or judiciary on such intricacies becomes essential.
Source: https://indiankanoon.org/doc/194357814/
International – Competition Law
The European Union and the United Kingdom unveiled the eagerly awaited Memorandum of Understanding (MoU), which establishes a structured framework for collaborative regulatory cooperation in the realm of financial services post-Brexit. This significant development follows the earlier Joint Declaration on Financial Services Regulatory Cooperation between the EU and the UK, which was a component of the Trade and Cooperation Agreement signed in December 2020. The progress on the proposed MoU had been impeded by disagreements over Northern Ireland trading arrangements. Seamless's Comment:The MoU is chiefly aimed at preserving financial stability, upholding market integrity, and safeguarding the interests of investors and consumers.
Interesting Facts
How can trade secrets offer more durable protection than patents in the realm of intellectual property?
Trade secrets can provide enduring protection without disclosure, making them advantageous over patents in certain cases, but maintaining confidentiality is crucial to retaining their legal status.
June 2023
Key Labour Law / Employee welfare
As per the latest notification, it has been mandated that all employees must make a monthly contribution to the Fund. The contribution amount is set at 0.2% of their salary, wages, or any form of remuneration, subject to a maximum limit of INR 31. Moreover, it is the responsibility of every employer to contribute twice the amount contributed by each employee. It is crucial to highlight that the specified limit will be adjusted annually, commencing from January 1st of each year, in accordance with the consumer price index.
Source: https://seamlessglobal.co/wp-content/uploads/2023/07/Haryana-Labour-law-welfare-board.pdf
Seamless Comment: Employers must contribute double the employee's amount. The specified limit will be adjusted annually based on the consumer price index from January 1st of each year. This will increase the Fund's resources, ensuring financial stability and enabling future employee benefits. However, it may pose challenges for some businesses and slightly reduce employees' take-home salaries. The policy aims to enhance financial security and promote social responsibility among employers.
The Employees' Provident Fund Organization (EPFO) has announced an extension of the deadline for employees to submit applications for validation of option/joint options, now extended until July 11, 2023. Eligible pensioners/members have been granted additional time to complete the process and address any issues. Furthermore, employers have been given a three-month extension, until September 30, 2023, to upload wage details online.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1935487
Seamless Comment: These measures by the EPFO aim to ensure a smoother process for enhanced pension benefits and accommodate the needs of both employees and employers.
EPFO constituted committees to draft schemes under the Social Security Code 2020 which is a significant step towards implementing comprehensive social security measures for employees in India. By framing the Employees' Provident Fund Scheme (EPFS), Employees' Pension Scheme (EPS), and Employees' Deposit Linked Insurance Scheme (EDLIS), the EPFO aims to ensure the financial security and well-being of workers. The formation of separate committees for each scheme demonstrates a focused and systematic approach to addressing the specific requirements of these schemes. The deadline for submitting the initial drafts reflects the urgency and commitment to advancing social security reforms.
Source: https://www.epfindia.gov.in/site_docs/PDFs/Circulars/Y2023-2024/CommitteeSSCode-95074.pdf
Seamless Comment: The constitution of committees by the EPFO to draft schemes under the Social Security Code 2020 is a significant step towards implementing comprehensive social security measures for employees in India. The EPFO aims to ensure financial security through schemes like EPFS, EPS, and EDLIS, addressing specific requirements through separate committees. The deadline for submitting initial drafts reflects a sense of urgency and commitment to advancing social security reforms.
Key Announcements by RBI
The Directorate General of Foreign Trade (DGFT) has issued a notification on June 23, 2023, regarding the revised procedure for applying for the Amnesty Scheme for one-time settlement of default in export obligation by Advance and EPCG authorisation holders in manual mode. Initially, applications were filed online through the EODC module of the DGFT website. However, an alternative method has been introduced due to issues exporters face in filing online applications.
Seamless Comment: The revised procedure for the Amnesty Scheme by the DGFT aims to address the difficulties exporters face in filing online applications. Introducing a standalone website for manual mode applications gives exporters an alternative option.
The Reserve Bank of India (RBI) issued a notification on June 22, 2023, announcing the revised norms for remittances to International Financial Services Centers (IFSCs) under the Liberalized Remittance Scheme (LRS). Previously, remittances to IFSCs under LRS were limited to investments in securities. However, per the new directive, Authorized Persons can now facilitate remittances for resident individuals for 'studies abroad.' This enables the payment of fees to foreign universities or institutions located in IFSCs for pursuing courses.
Source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12518&Mode=0
Seamless Comment: The RBI's revision of norms for remittances to IFSCs under the LRS reflects a proactive approach to facilitate and support educational pursuits abroad. By allowing remittances for the purpose of 'studies abroad' to IFSCs, resident individuals have a wider range of options for paying fees to foreign universities or institutions. This revision aligns with the changing needs of individuals seeking educational opportunities internationally and contributes to the overall ease of transactions under the LRS framework.
The Reserve Bank of India (RBI) has issued a statement outlining proposed changes in financial markets, regulation, and payment systems. The proposals include allowing scheduled commercial banks to set their own borrowing limits in Call and Notice Money Markets, introducing a comprehensive regulatory framework for compromise settlements and technical write-offs, rationalising prudential norms for resolution plans during natural calamities, establishing a regulatory framework for Default Loss Guarantee arrangements in Digital Lending, and simplifying licensing for Authorized Persons (APs).
Source: https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=55815
Seamless Comment: These proposed changes aim to enhance flexibility, efficiency, and resilience in the financial system. The RBI's focus on adapting regulations and addressing emerging needs reflects its commitment to facilitating a dynamic and rapidly growing Indian economy.
The Reserve Bank of India (RBI) has expanded the scope of the Trade Receivables Discounting System (TReDS) to ease liquidity constraints for Micro, Small, and Medium Enterprises (MSMEs). The revised guidelines now allow insurance participation, an expanded pool of financiers, secondary market operations, settlement of all Factoring Units (FUs), and a transparent display of bids.
Source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12510&Mode=0
Seamless Comment: The RBI's notification has expanded the TReDS to alleviate liquidity constraints for MSMEs. The revised guidelines now allow insurance participation, an expanded pool of financiers, secondary market operations, settlement of all Factoring Units (FUs), and transparent bid displays. These changes aim to enhance financing accessibility and promote efficiency in the trade receivables ecosystem for MSMEs. This expansion provides crucial support to MSMEs by improving their access to working capital and addressing liquidity challenges.
The Directorate General of Foreign Trade (DGFT) has implemented a new online facility for exporters to request appointments from DGFT Offices. This mechanism, which was notified on 31st May 2023, is now operational from 1st June 2023.Through this online facility, exporters can submit a request for a personal virtual hearing. The Regional Authorities (RAs) of the DGFT will then provide a suitable time and a link for the virtual hearing through the online platform. Exporters can access this online appointment request facility on the DGFT website. Detailed information about this feature can be found in the DGFT Help Manuals.
Seamless Comment: This digital initiative by the DGFT aims to enhance the efficiency and convenience of interactions between exporters and DGFT Offices, streamlining the process of obtaining appointments for virtual hearings.
Key Corporate Law Updates
The Central Government issued the Income-tax (Tenth Amendment) Rules, 2023 on June 21, 2023. These amended rules introduce a new procedure to opt for the new tax regime, which was introduced by the Finance Act, 2020 through the insertion of a new Section 115BAC. The new tax regime allows individuals, HUFs, and both resident and non-resident taxpayers to avail lower tax rates compared to existing slab rates. However, in exchange, taxpayers need to forego around 70 exemptions and deductions currently available. This optional scheme is applicable from Assessment Year 2021-22 onwards. To opt for the new tax regime, taxpayers are required to file Form No. 10-IEA as per Section 115BAC. The form can be filed electronically using a digital signature or electronic verification code. The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) will specify the procedure for filing the form and ensure appropriate security measures.
Source: https://incometaxindia.gov.in/communications/notification/notification-43-2023.pdf
Seamless Comment: The issuance of the Income-tax (Tenth Amendment) Rules, 2023 by the Central Government marks the introduction of a new tax regime. Taxpayers now have the option to choose between the new regime, offering lower rates but fewer exemptions and deductions, and the existing system. The amendment also outlines the procedure for opting into the new regime through the filing of Form No. 10-IEA. The responsible officers are tasked with formulating and implementing the necessary protocols for a smooth transition.
The Central Government has issued the E-advance Rulings (Amendment) Scheme, 2023, allowing taxpayers to apply for advance rulings through e-mail. Personal hearings will be conducted via video conferencing under subsection (5) of section 245R of the Act. In case of differences in opinion among Members of a Board for Advance Rulings, the matter will be referred to the Principal Chief Commissioner of Income-tax (International Taxation) for resolution.
Source: https://incometaxindia.gov.in/communications/notification/notification-38-2023.pdf
Seamless Comment: This scheme enhances convenience, efficiency, and fairness in the advance rulings process.
The Central Board of Direct Taxes has issued the Income-tax (Ninth Amendment) Rules, 2023, bringing significant changes to the application process for advance ruling under the Income-tax Act, 1961. The amendment specifies the individuals authorized to sign or digitally sign the application based on the taxpayer category. It also emphasizes the requirement to furnish the application through the registered e-mail address of the respective taxpayer. Furthermore, the amendment revises several forms related to advance ruling applications, catering to specific scenarios and transactions.
Source: https://incometaxindia.gov.in/communications/notification/notification-37-2023.pdf
Seamless Comment: These changes aim to streamline the application process and ensure clarity and efficiency in obtaining advance rulings under the Income-tax Act, 1961.
The Government of Haryana has issued an amendment to the Haryana Value Added Tax Act, 2003, affecting bar and pub licensees. Under certain license categories, such as L-4, L-5, L-10C, and others, no Input Tax Credit (ITC) will be allowed on liquor purchases. Additionally, a tax rate of 18% with a 5% surcharge will be applicable. The amendment aims to ensure proper levy and collection of VAT on liquor throughout the supply chain.
Source: https://legalitysimplified.com/wp-content/uploads/2023/06/Gazette_104-2023_Ext_16480.pdf
Seamless Comment: This amendment restricts bar and pub licensees in Haryana from claiming tax credit on liquor purchases for their establishments. The intention is to regulate the taxation of liquor and streamline the collection of VAT by registered dealers.
The Central Board of Direct Taxes (CBDT) has issued the Income-tax (Eighth Amendment) Rules, clarifying that income from the receipt of movable property, such as equity shares, through strategic disinvestment will not be required to be reported as "Income from other sources" while filing the Annual Income Tax return. This amendment provides clarity and streamlines the reporting process for individuals who receive such income. It will be applicable from April 1, 2023, onwards for the assessment year 2023-2024 and subsequent years, without any retrospective effect.
Source: https://incometaxindia.gov.in/communications/notification/notification-35-2023.pdf
Seamless Comment: The CBDT's clarification regarding the reporting of income from strategic disinvestment brings relief to taxpayers and eliminates any ambiguity regarding the treatment of such income. This amendment aligns the tax reporting requirements with the specific nature of income derived from strategic disinvestment transactions.
The Central Board of Indirect Taxes & Customs has reorganized customs National Assessment Centers (NACs) and Faceless Assessment Groups. The number of NACs has been reduced from 11 to 8 by merging certain categories. Each NAC will now be headed by a Principal Chief/Chief Commissioner. This reorganization aims to enhance uniformity and efficiency in assessment practices.
Seamless Comment: The reorganization of customs NACs and Faceless Assessment Groups is a strategic move by the Central Board of Indirect Taxes & Customs to streamline operations and improve assessment outcomes. The reduction in the number of NACs and the consolidation of categories will promote better coordination and consistency in assessment practices. It is expected to result in improved efficiency and enhanced compliance with import policies.
The Central Board of Indirect Taxes and Customs has issued a notification implementing the Supreme Court's directions on imports under Advance Authorization for physical exports. Imports that do not meet the pre-import condition requirements will be subject to payment of IGST and Compensation Cess. Importers can approach the assessment group at the port of import to pay the tax and cess with applicable interest. The Bill of Entry will be reassessed, and payment can be made through the Customs EDI System. Notional Out of Charge (OOC) will be generated for eligibility under GST provisions.
Source: https://taxinformation.cbic.gov.in/view-pdf/1003163/ENG/Circulars%22
Seamless Comment: DGFT has also provided guidelines for regularizing imports made under the Advance Authorization Scheme.
The Central Board of Direct Taxes has issued revised guidelines on the conditions and procedure for deciding applications for condonation of delay in filing Returns of Income (RsOI), claiming refunds, or claiming carry forward of loss and setoff. The previous guidelines specified different monetary limits for acceptance/rejection of such applications based on the authority. However, the revised guidelines have updated the monetary limits as follows:
- Principal Commissioners of Income-tax/Commissioners of Income-tax: Powers of acceptance/rejection for claims up to Rs. 50 lakhs.
- Chief Commissioners of Income-tax: Powers of acceptance/rejection for claims exceeding Rs. 50 lakhs but not exceeding Rs. 2 crores.
- Principal Chief Commissioners of Income-tax: Powers of acceptance/rejection for claims exceeding Rs. 2 crores but not exceeding Rs. 3 crores.
- Applications/claims exceeding Rs. 3 crores to be considered by the Board.
Source: https://incometaxindia.gov.in/communications/circular/circular-no-07-2023.pdf
Seamless Comment: These revised monetary limits will be applicable to applications/claims filed on or after June 1, 2023. These guidelines aim to streamline the process of condonation of delay an
The Central Board of Indirect Taxes and Customs (CBIC) has issued a Standard Operating Procedure (SOP) for scrutinizing returns from the financial year 2019-20 onwards. The Directorate General of Systems (DG Systems) has developed the "Scrutiny of Returns" functionality in the CBIC ACES-GST application. This new functionality facilitates a comprehensive workflow for scrutinizing returns, including the communication of discrepancies identified by the proper officer in FORM GST ASMT-10 to the registered person. The registered person can then respond to the discrepancies in FORM GST ASMT-11. Based on the reply received, the proper officer will issue an order in FORM GST ASMT-12 or initiate further action, such as issuing a show cause notice under Section 73 or 74 of the CGST Act, 2017, or referring the matter for audit or investigation.
Source: https://taxinformation.cbic.gov.in/view-pdf/1000478/ENG/Instructions
Seamless Comment: This SOP streamlines the process of scrutiny and ensures effective communication and resolution of discrepancies in GST returns.
The Government of Delhi has recently issued an amendment to its previous notification dated June 30, 2017, concerning the exemption of intra-state supplies of goods under the Delhi Goods and Services Tax Act, 2017. This amendment, issued on 25th May 2023, introduces a significant change.
The amendment includes a new exemption for Rab, except for pre-packaged and labelled goods. As a result, the prescribed Rab is now exempt from the entire state tax applicable to intra-state supply of goods.
Source: https://legalitysimplified.com/wp-content/uploads/2023/06/Delhi-GST-Act2017-25May2023.pdf
Seamless Comment: This amendment will take effect from 1st March 2023, providing relief to those engaged in the supply of Rab within Delhi.
The Central Board of Direct Taxes (CBDT) has recently published the Income-tax (Sixth Amendment) Rules, 2023 on 29th May. These amendment rules will come into effect from the date of their publication in the Official Gazette. The key change introduced by these rules is the redesignation of the position of "Commissioner (Appeals)" as "Joint Commissioner (Appeals) or Commissioner (Appeals)". Additionally, the designation of "Deputy Commissioner" has been replaced with "Joint Commissioner".
Source: https://incometaxindia.gov.in/communications/notification/notification-32-2023.pdf
Seamless Comment: These amendments aim to streamline the designation framework within the income-tax department and ensure clarity in the roles and responsibilities of the respective positions.
The Central Board of Direct Taxes (CBDT) has issued the Income-tax (7th Amendment) Rules, 2023. Under the amendment, individuals applying for tax exemption on donations to eligible charitable institutions can receive provisional approval. This approval will be effective from the assessment year relevant to the previous year of application, allowing taxpayers to claim deductions using the provisional approval from that assessment year.
Source: https://incometaxindia.gov.in/communications/notification/notification-34-2023.pdf
Seamless Comment: The introduction of provisional approval for tax exemption on donations is a significant step towards streamlining the process for individuals seeking to contribute to charitable institutions. This provision allows taxpayers to claim deductions from the assessment year relevant to the year of application, providing them with immediate benefits while the final approval is processed. It not only simplifies the procedure but also encourages philanthropy by offering taxpayers the opportunity to support eligible charitable causes effectively.
The Central Government has issued the e-Appeals Scheme, 2023 under the Income-tax Act, 1961. This scheme empowers the Joint Commissioner (Appeals) to handle and resolve income tax appeals. Key provisions of the scheme include condonation of appeal filing delays, notice and submission requirements, obtaining information and documents, obtaining reports from the Assessing Officer, conducting further inquiries, and requesting information or documents from relevant parties. The scheme aims to streamline the appeals process and improve efficiency in resolving income tax appeals.
Source: https://incometaxindia.gov.in/communications/notification/notification-33-2023.pdf
Seamless Comment: The e-Appeals Scheme, 2023 is expected to enhance efficiency, transparency, and accessibility in handling income tax appeals. By providing clear guidelines to the Joint Commissioner (Appeals), it aims to streamline the process and facilitate smoother resolution of such appeals.
Key Environment Laws Updates
The Ministry of Environment, Forest and Climate Change (MoEFCC) has released the Draft Green Credit Programme Implementation Rules, 2023. Published on June 27, 2023, these rules aim to establish a national-level initiative that promotes sustainable practices and incentivizes the adoption of green actions through the trading of Green Credits. The Green Credit Programme encourages individuals, organizations, and industries to generate or purchase Green Credits by undertaking activities that contribute to sustainable living, conservation, and climate co-benefits. The public is invited to provide objections or suggestions regarding the draft notification until August 26, 2023.
Source: https://moef.gov.in/wp-content/uploads/2023/06/Draft-GCP-Notification-Inviting-Comments-27062023.pdf
Seamless Comment: The Ministry of Environment's publication of the Draft Green Credit Programme Implementation Rules is a significant step towards promoting sustainability and incentivizing green practices through the trading of Green Credits. The public's input on the draft rules will help shape an effective and inclusive program.
The MoEFCC has issued the Environment (Protection) Fourth Amendment Rules, 2023, which come into effect from 14th June, 2023. These rules specifically address the emission limits for new engines used in power generating set (Genset) applications with a gross mechanical power of up to 800 kW. Under the Amendment Rules, a revision has been made to the transition provisions related to Gensets and Genset engines manufactured as per earlier norms. As per the revised rules, Gensets and Genset engines for which a purchase order has been received by the manufacturer on or before 30th June, 2023, will be permitted until 30th June, 2024, as per the defined norms.
Source: https://moef.gov.in/wp-content/uploads/2023/06/GSR-346E-Genset.pdf
Seamless Comment: The amendment in the Environment (Protection) Rules provides clarity on the transition provisions for Gensets and Genset engines manufactured as per earlier norms. The extended timeline for the supply of Gensets and Genset engines allows manufacturers to comply with the new emission limits and supports the objective of reducing environmental impact from power generating set applications.
The Central Pollution Control Board (CPCB) has taken a significant step towards tackling air pollution caused by small-scale industrial steam boilers. The newly published draft guidelines propose the adoption of community boilers, a centralized system that supplies steam to multiple small units within an industrial cluster. These guidelines aim to simplify regulatory procedures, promote resource efficiency, enhance air pollution control, and encourage sustainable practices in the industrial sector.
Source: https://cpcb.nic.in/openpdffile.php?id=TmV3c0ZpbGVzLzEwMF8xNjg2OTE1MDczX21lZGlhcGhvdG8xMzQ4NS5wZGY=
Seamless Comment: The success of community boiler initiatives in Gujarat serves as an inspiring model for replication in other regions, emphasizing the potential for a cleaner and greener future in the industry.
The MoEFCC has issued a crucial notification reinforcing the Extended Producer Responsibility (EPR) provisions for recyclers in the management of electronic waste. As per the notification, recyclers are now required to generate EPR Certificates through the dedicated EPR Portal. This measure aims to enhance the effective regulation and disposal of electronic waste in accordance with the E-Wastes (Management) Rules, 2022. Recyclers must maintain records of sales and purchases of different recovered materials and e-waste through GST-linked invoices to facilitate EPR Certificate generation. The notification also imposes obligations on producers to accept GST-linked sales invoices from e-waste recyclers as proof of responsible recycling for their end products.
Seamless Comment: These provisions ensure transparency, traceability, and responsible management of electronic waste in line with environmental sustainability goals.
The Central Pollution Control Board (CPCB) has issued a public notice on the calculation method for the Provisional Extended Producer Responsibility (EPR) Target for the year 2023-2024. This notice, released on 14th June, 2023, outlines the method to determine the provisional target until the actual EPR target is generated based on the filing of annual returns for 2022-2023. The Ministry of Environment, Forest and Climate Change (MoEFCC) has extended the deadline for filing the Annual Returns to 31st October, 2023, on the centralised EPR portal.
Seamless Comment: The CPCB's public notice on the calculation of the provisional EPR target ensures transparency and standardization in achieving extended producer responsibility. The extension granted by the MoEFCC allows producers, importers, and brand owners adequate time to fulfill their reporting obligations. These measures contribute to effective waste management and promote environmental sustainability.
The Environment (Protection) Third Amendment Rules, 2023, introduced by the Ministry of Environment, Forest, and Climate Change (MoEFCC), highlight the government's commitment to minimizing environmental pollution and promoting sustainability in the Calcined Petroleum Coke (CPC) industry. The newly implemented rules outline more stringent standards for CPC units, including emission concentration limits measured in milligrams per normal cubic meter (mg/Nm3). Mandating the installation of continuous emission monitoring systems (CEMS) and conducting regular monitoring of emissions, these regulations ensure real-time data for better process control.
Source: https://egazette.gov.in/WriteReadData/2023/246296.pdf
Seamless Comment: The amendment also addresses stack height requirements to ensure proper dispersion of emissions. These rules, effective from 5th June 2025, demonstrate the government's focus on environmental protection and sustainable industrial practices.
The Government of Andhra Pradesh has recently issued a notification amending the Andhra Pradesh Forest Produce Transit Rules, 1970. This amendment, issued by the Environment, Forests, Science & Technology Department on 17th May 2023, introduces an important change.
According to the amendment, a transit pass or no objection certificate (NOC) generated through the National Transit Pass System (NTPS) will now be valid within the state of Andhra Pradesh. The NTPS portal is a system governed by the Government of India. As a result, transit passes or NOCs obtained through the NTPS will be recognized and accepted in the state of Andhra Pradesh.
Seamless Comment: This amendment aims to streamline the process of transit and ensure better compliance with forest produce regulations in the state.
Other key updates
The Department of Consumer Affairs has issued the Legal Metrology (Packaged Commodities) (Amendment) Rules, 2023, bringing changes to the declarations required on packages of electronic products. These rules, effective from 23rd June, 2023, introduce new requirements for packaging information, including the name of the manufacturer or packer or importer on the package itself. Consumers are also informed to scan the QR code for additional details such as address, commodity name, size, and contact information. This amendment aims to enhance transparency and give consumers easy access to essential product information.
Source: https://egazette.gov.in/WriteReadData/2023/246773.pdf
Seamless Comment: The Department of Consumer Affairs has taken proactive measures to ensure transparency and empower consumers with the necessary information about packaged electronic products. By mandating QR codes and specific declarations, consumers can quickly access vital details, leading to informed purchasing decisions.
The University Grants Commission (UGC) has issued a circular on June 26, 2023, directing all higher educational institutions to share their initiatives and reforms related to the National Education Policy (NEP) 2020 on the UTSAH (Undertaking transformative Strategies and Actions in Higher Education) Portal. HEIs can log in to the UTSAH Portal using the AISHE code and provide information on various activities falling under the identified thrust areas for reforms in higher education.
Source: https://www.ugc.gov.in/pdfnews/5425830_UTSAH-Portal.pdf
Seamless Comment: The launch of the UTSAH Portal by the University Grants Commission is a commendable step towards effective tracking and support for the implementation of transformative reforms in higher education. This portal serves as a centralized platform to provide detailed information about UGC's initiatives and reforms, ensuring easy accessibility for stakeholders. By sharing their initiatives and best practices on the UTSAH Portal, higher educational institutions can contribute to the qualitative reforms and successful implementation of the NEP 2020.
The government has simplified the rules for smart metering, reducing penalties for exceeding sanctioned loads and demand. Post smart meter installation, no penal charges will be imposed based on previous recorded maximum demand. The maximum demand will only be revised upwards if the sanctioned load is exceeded at least three times in a financial year. Additionally, smart meters will be read remotely daily, and the data will be shared with consumers to make informed electricity consumption decisions.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1934673
Seamless Comment: These amendments aim to empower consumers, encourage efficient power usage, and streamline the process of adopting smart metering technology for a more sustainable and consumer-friendly power tariff system.
The Ministry of Law and Justice, in a press release on 21 June 2023, announced the Department of Justice's TeleLaw initiative. This groundbreaking program aims to enhance the lives of citizens by providing free pre-litigation advice and ensuring accessible and efficient justice delivery throughout the country, including remote areas, to bridge the digital divide.
The core idea behind TeleLaw is to facilitate the provision of legal advice through a panel of lawyers located at the front office of Legal Services Authorities and CSCs.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1934103
Seamless Comment: The project connects citizens with panel lawyers via video conferencing or telephone facilities, facilitated by Village Level Entrepreneurs operating in 1,00,000 gram panchayats.
The Central Government issued the Consumer Protection (Direct Selling) (Amendment) Rules, 2023, on 21st June. The amendment broadens the definition of direct selling entities and extends the rules' applicability to cover various models of direct selling and entities operating both within and outside India. The rules mandate proper registration, fair contracts with direct sellers, verification of identities, and adherence to consumer protection regulations. Direct selling entities are also responsible for addressing grievances and providing transparent information to consumers.
The rules require direct selling entities to be incorporated under the Companies Act, 2013, or registered under the Partnership Act, 1932, or Limited Liability Partnership Act, 2008. They must have a registered office within India and make a self-declaration of compliance with the Direct Selling rules, confirming their non-involvement in Pyramid Schemes or money circulation schemes.
Source: https://egazette.gov.in/WriteReadData/2023/246732.pdf
Seamless Comment: These amendemnts helps protect consumers from fraudulent schemes and unfair trade practices while providing them with clearer information and grievance redressal mechanisms. The amendment also establishes criteria for direct selling entities, promoting transparency and accountability in the industry. Overall, it aims to create a safer and more trustworthy environment for both consumers and direct sellers.
The Ministry of Power's notification of the Electricity (Rights of Consumers) Amendment Rules, 2023 signifies a significant step towards enhancing consumer rights and transparency in the electricity sector. These rules introduce two key provisions aimed at empowering consumers and ensuring informed decision-making. The Time-of-Day tariff provision promotes efficient energy usage by implementing dynamic pricing for commercial, industrial, and smart meter consumers. The requirement for the display of tariffs on distribution licensee's websites and advance notification of tariff changes enhances consumer awareness and promotes transparency.
Seamless Comment: These amendments contribute to a consumer-centric approach in the electricity sector, fostering a fair and equitable environment for consumers.
Important Judgment
Himachal Pradesh High Court while observing that Maternity leave aims to protect the dignity of motherhood that every woman, irrespective of her employment status, is entitled to maternity leave, has held denial of the same violates fundamental rights under Article 29 and 39D of Constitution.
The National Company Law Appellate Tribunal (NCLAT) has ruled that while it does not have the power of review, it possesses the inherent power to recall its judgments. In a case involving Union Bank of India (Erstwhile Corporation Bank) and Dinkar T. Venkatasubramanian & ors, the NCLAT clarified that the power to recall a judgment is inherent, despite the absence of a provision for review under the Code. The decision overturns a previous interpretation by a three-member bench and establishes that the NCLAT has the authority to recall its judgments based on sufficient grounds.
Seamless Comment: The recent judgment by the National Company Law Appellate Tribunal (NCLAT) in the Union Bank of India (Erstwhile Corporation Bank) vs. Dinkar T. Venkatasubramanian & ors case is significant as it clarifies the NCLAT's authority to recall its judgments. This ruling establishes that while the NCLAT does not possess the power of review, it retains the inherent power to recall judgments based on sufficient grounds. This interpretation provides clarity on the NCLAT's jurisdiction and ensures fair and just outcomes in corporate insolvency resolution processes.
Recently, on June 30, 2023, the Delhi High Court made a definitive ruling in the case of Dr. Sohail Malik vs. Union of India (W.P.(C) 8624/2023). The court clarified that the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 is not restricted to incidents where a female employee is sexually harassed by a colleague in the same workplace. Instead, the act applies to situations where the offender is employed elsewhere.
Foreign Law Development
Under the new measures, it is prohibited to provide "legal advisory services" to non UK persons regarding activities that would be prohibited by the Russia Regulations if conducted by a UK person or within the UK.
For example, UK lawyers are restricted from advising foreign clients on certain loans involving Russia, even if the clients are outside the jurisdiction of UK sanctions.
"Legal advisory services" cover non-contentious legal advice related to applying or interpreting the law, representing clients in commercial transactions, and preparing or verifying legal documents. These restrictions do not apply to legal representation services in administrative, judicial, or arbitration/mediation proceedings.
Interesting Facts
January 2023
FINANCIAL LAWS
On February 1, Hon’ble Finance Minister (FM), Ms. Nirmala Sitharaman presented the last full annual budget before the upcoming general elections that are due to take place in 2024. This Budget lays the foundation for sustained inclusive growth supported by robust infrastructure. It’s no surprise that a sizeable amount of the Budget was allocated to the agricultural sector, startups, MSMEs, infrastructure, and the simplification of personal tax.
Overall, this Budget sets out the blueprint for a more developed India and solidifies the country's position as one of the fastest-growing larger economies in the world.
For more in-depth analysis of Union Budget 2023, download the full report here: https://insights.seamlessglobal.co/union-budget-2023
A circular has been issued by the National Payments Corporation of India (NPCI) regarding the extension to crediting/debiting Non-Resident (NR) accounts in UPI and IMPS domestic transaction" wherein transfer of funds has been permitted between NRE accounts and other permissible accounts.
There has long been requests to the Corporation with regards to the Non-resident (NR) accounts and other permissible accounts having international numbers to be allowed to transact in UPI. There has also been customer demand in the ecosystem to enable UPI for their NR accounts to have an international number and experience the seamless and instant journey of UPI. Earlier UPI being a sim-linked payments process, NRIs required an Indian mobile phone number which required regular payments of phone bills or prepaid top-ups to keep the number active. By linking the accounts with a non-Indian sim card, the maintenance cost is eliminated. That said, the level of compliance by banks may increase if the user migrates from an Indian mobile number to a foreign number. Even under the existing mechanism, the linkage of the mobile number is with NRO/NRE. With the migration to a foreign number, the FEMA and AML related compliances which the member banks must undertake will increase.
In view of the above, members of the UPI eco-system have been advised the following:
- Non-Resident account types like NRE/NRO accounts having international mobile numbers shall be allowed to get on-boarded/transact in UPI, provided:
- It is ensured by member banks that such types of accounts are only allowed as per the extant FEMA regulations and adherence to the guidelines/instructions issued from time to time by the concerned regulatory departments of the Reserve Bank of India.
- All the necessary Anti-Money Laundering (AML)/ Combating of Financing of Terrorism (CFT) checks and compliance validation/account level validations as per the extant rules applicable under the regulatory guidelines shall be the responsibility of the remitter/beneficiary banks.
- Initially, the corporation will be enabling the transaction from mobile numbers having the country code of the countries along with the current domestic country code. The first phase of rollout is extended only to ten countries — Singapore, Australia, Canada, Hong Kong, Oman, Qatar, the US, Saudi Arabia, United Arab Emirates and the UK and shall extend to other country codes in near future through an addendum or guidelines issued by NPCI. Members are advised to comply with the above directives by April 30, 2023.
Source: https://www.npci.org.in/PDF/npci/upi/circular/2023/UPI-OC-161-Extension-to-UPI-Circular-No-60-Crediting-Debiting-Non-Resident-accounts-in-UPI.pdf
The Reserve Bank of India has introduced the ‘Fully Accessible Route’ for Investment by Non-residents in Government Securities – Inclusion of Sovereign Green Bonds.
The Government Securities eligible for investment under the FAR (‘specified securities’) were notified by the Bank earlier. Now, all Sovereign Green Bonds issued by the Government in the fiscal year 2022-23 as ‘specified securities’ have been designated under the FAR. The Directions contained in this circular have been issued under the Reserve Bank of India Act, 1934. They are without prejudice to permissions/ approvals, if any, required under any other law.
Source: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT16999126030CDD14DA2BCA52780EF1D4AE4.PDF
EDUCATION
The University Grants Commission (UGC) on January 10, 2023, issued a notification regarding the implementation of UGC guidelines for pursuing two academic programs simultaneously as it had come to the notice of the UGC that students are facing difficulties as HEIs insist on migration certificates, In the absence of these certificates, the students are not granted admission and that defeats the facility of pursuing two academic programs simultaneously.
UGC has requested that the universities may devise facilitative mechanisms through their statutory bodies by implementing the guidelines to allow the students to pursue two academic programs simultaneously.
Source: https://www.ugc.ac.in/pdfnews/9247013_two-academic-prog-HEIs.pdf
The University Grants Commission (UGC), has issued a notification regarding compliance with the notification of the Ministry of Information & Broadcasting by HIE’s.Ministry of Education vide its Office Memorandum dated November 29, 2022, forwarded an Advisory dated October 21, 2022, issued by the Ministry of Information and Broadcasting on the subject of "Issues relating to Broadcasting and Distribution Services by Central Government Ministries / Departments / State Governments and other institutions/bodies. A copy of the same is attached herewith.All the higher educational institutions are requested to comply with the provisions mentioned in the Advisory described above of the Ministry of Information & Broadcasting, adhering to the timeline recommended.
Source: https://www.ugc.ac.in/pdfnews/3946895_CPP-II-Issues-relating-to-Broadcasting.pdf
Last date to receive comments on draft UGC (setting up and Operation of Campuses of Foreign Higher Educational Institutions in India) Regulations, 2023 has been extended by the University Grants Commission (UGC) in continuation of the UGC Public Notice No. F.No. 1-3/2022(NEP) dated January 05, 2023, seeking comments from the stakeholders on the draft University Grants Commission (Setting up and Operation of Campuses of Foreign Higher Educational Institutions in India) Regulations, 2023. In view of the requests being received from the stakeholders to extend the last date for submitting comments/suggestions/feedback on the aforesaid draft Regulations, the last date for receiving comments on the draft regulations is hereby extended to February 03, 2023
Source: https://www.ugc.ac.in/pdfnews/6186767_Public-Notice-draft-regulation-on-FHEIs.pdf
BUSINESS LAWS
The Indian government has introduced certain amendments and additions to the Competition Act 2002. Objective of the Competition Act is to encourage a competitive marketplace in India and prevent monopolies. The amendments put forth are listed below:
- Combinations to be regulated based on transaction value: Any person or enterprise are prohibited from entering into a combination which may cause an appreciable adverse effect on competition by the Act. Combinations include mergers, acquisitions, or amalgamation of enterprises. Earlier the prohibition applies to transactions where parties involved have: (i) cumulative assets of more than Rs 1,000 crore, or (ii) cumulative turnover of more than Rs 3,000 crore, subject to certain other conditions. The bill has expanded this prohibition to combinations including transactions with a value above Rs 2,000 crore.
- Time limit for approval of combinations increased: The Bill reduces the time limit to 150 days from the earlier 210 days under the Act requiring the CCI to pass an order on an application for approval of combinations.
- Definition of control for classification of combinations to be modified: For classification of combinations, the Act defines control as control over the affairs or management by one or more enterprises over another enterprise or group. This definition has been modified by the bill ‘as the ability to exercise material influence over the management, affairs, or strategic commercial decisions.’
- Anti-competitive agreements: Anti-competitive agreements under the Act include any agreement related to production, supply, storage, or control of goods or services, which can cause an appreciable adverse effect on competition in India. Any agreement between enterprises or persons, engaged in identical or similar businesses, will have such adverse effect on competition if it meets certain criteria. These include: (i) directly or indirectly determining purchase or sale prices, (ii) controlling production, supply, markets, or provision of services, or (iii) directly or indirectly leading to collusive bidding. To this, the bill adds that enterprises or persons not engaged in identical or similar businesses shall be presumed to be part of such agreements, if they actively participate in the furtherance of such agreements.
- Provision for Settlement and Commitment in anti-competitive proceedings: Under the Act, CCI may initiate proceedings against enterprises on grounds of: (i) entering into anti-competitive agreements, or (ii) abuse of dominant position. The Bill allows CCI to close inquiry proceedings if the enterprise offers: (i) settlement (may involve payment), or (ii) commitments (may be structural or behavioural in nature). The manner and implementation of the framework of settlement and commitment may be specified by CCI through regulations.
- Decriminalisation of certain offences: The Bill changes the nature of punishment for certain offences from imposition of fine to penalty. These offences include failure to comply with orders of CCI and directions of Director General with regard to anti-competitive agreements and abuse of dominant position.
Source: http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/185_2022_LS_Eng.pdf
The Ministry of Corporate Affairs (MCA) has issued a clarification on the holding of the Annual General Meeting (AGM) through Video Conference (VC) or Other Audio Visual Means (OAVM). The companies whose AGMs are due in the Year 2023 can conduct their AGMs on or before September 30, 2023.The requirements laid down in General Circular 20/2020 which state “Clarification on holding of annual general meeting (AGM) through video conferencing (VC) or other audio visual means (OAVM)” must be followed. Further, clarification is provided that this shall not be construed as conferring any extension of time for holding of AGMs by the companies. The companies which have not adhered to the relevant timelines shall be liable for legal action.
Source: https://www.mca.gov.in/bin/ebook/dms/getdocument?doc=MjMxNjg0MTE1&docCategory=Circulars&type=open
The Ministry of Corporate Affairs (MCA) has made amendments to the Companies (Registration Offices and Fees) Amendment Rules, 2023 to further amend the Companies (Registration Offices and Fees) Rules, 2014. The amendment states that e-forms wherever applicable shall be signed by Insolvency resolution professional or resolution professional or liquidator of companies under insolvency or liquidation, as the case may be, and filed with the Registrar along with the fee as mentioned in Table annexed. In the Annexure to the rules, for Form GNL-2, Form GNL-3 and Form GNL-4, the Form No. GNL-2 Form for submission of documents with the Registrar, Form No. GNL-3 Particulars of person(s) charged for the purpose of subclause (iii) or (iv) of clause 60 of section 2, Form No. GNL-4 Form for filing Addendum for rectification of defects or incompleteness forms shall be substituted.
Source: https://www.mca.gov.in/bin/dms/getdocument?mds=XLgcI1xHIs9Sjmhyk6ogqg%253D%253D&type=open
The Ministry of Corporate Affairs (MCA) has published the Companies (Incorporation) Amendment Rules, 2023 to further amend the Companies (Incorporation) Rules, 2014. In rule 4 which states “Nomination by the subscriber or member of One Person Company” the name of the person nominated who shall in the event of the subscriber’s death or his incapacity to contract, become the member of that One Person Company shall be mentioned in the memorandum of One Person Company and such nomination details along with the consent of such nominee shall be filled as a declaration and the said Form along with the fee as provided in the Companies (Registration offices and fees) Rules, 2014 shall be filed with the Registrar at the time of incorporation of the company along with its e-memorandum and e-articles."
Source: https://www.mca.gov.in/bin/dms/getdocument?mds=ePWdYPBEJzswvfrz%252Fkb6og%253D%253D&type=open
The Ministry of Corporate Affairs (MCA) has issued the Companies (Appointment and Qualification of Directors) (Amendment) Rules, 2023 to further amend the Companies (Appointment and Qualification of Directors) Rules, 2014. In Rule 14 which states “Disqualification of directors, a declaration regarding disqualification shall be required in form DIR-8.Whenever a company receives the information in Form DIR-8, company shall, within thirty days of such receipt, file Form DIR-9 with the Registrar. Until now, form DIR-9 was used only when a company failed to file the financial statements or annual returns, or failed to repay any deposit, interest, dividend, or failed to redeem its debentures, as specified in section 164(2). However, after this amendment, the Companies are required to file this form whenever form DIR-8 is received regarding disqualification of director under section 164(1) also. Any application for removal of disqualification of directors shall be made in Form DIR-10 and filed before the Regional Director.
Source: https://www.mca.gov.in/bin/dms/getdocument?mds=SVZ6q8e7oYGouCHnMwGHZQ%253D%253D&type=open
FSSAI
The Food Safety and Standard Authority of India, (FSSAI) has issued a notification regarding ease of doing business: instant renewal of license/ registration to be applicable on applications received on or after January 12, 2023
The notification states the following:
- Renewal of license/ registration upon submission of the application by the FBO will be granted instantly, without requiring the scrutiny or approval of the concerned authority, on the following conditions:
- No change in the existing details of the license/registration shall be allowed.
- Validity of the Renewal: a) For License: This renewal of the license shall be for 1 year only
- b) For Registration: Renewal shall continue as per existing provision i.e. for 1-5 years, based on the selection and payment made by the FBO in the application.
- FBOs whose licenses/ registrations have been suspended/canceled, shall not be allowed to renew their license/registration.
- A declaration to be submitted by Food Business Operator (tick in the checkbox) has been added in FoSCoS.
- The renewal of license and registration shall be available as early as 180 days prior to the expiry date, FBOs are advised to apply for renewals as early as possible without waiting for the expiry date to avoid last-minute rush and to avoid the eventual penalty (due to expiry) in case of unavoidable online/portal related glitches on the day of expiry.
Source: https://fssai.gov.in/upload/advisories/2023/01/63bfa4c0d8679FSSAI%20Order%20dated%2011-01-2023.pdf
The Food Safety and Standards Authority of India (FSSAI) issued a notification regarding the Escalation matrix for raising grievances/queries related to Central Licenses/Applications on their online platform, Food Safety Compliance System (FoSCoS) for the issuance of Pan-India FSSAI License and Registration. The Central Licensing Authorities (CLA) has been appointed.
FBOs can utilise the prescribed escalation matrix in case they are aggrieved by the decision taken by CLA namely: -
- In case any Food Business Operator (FBO) is aggrieved by the CLA – The Concerned Regional Director.
- In case the FBO further wants to represent the case after receiving comments from the concerned regional director or in case no comments have been received within 21 days from raising the request – Executive Director (Compliance Strategy), FSSAI, HQs.
Source: https://fssai.gov.in/upload/advisories/2023/01/63be60bc6188420230111114427675.pdf
The Food Safety and Standards Authority of India (FSSAI) has issued a notification regarding the import of High-Risk food products at specific ports-reg to come into effect from March 01, 2023.
The FSSAI in consideration of the comments received from the stakeholders to envisage a robust import control system in India and ensure efficient monitoring and traceability of high-risk products has decided that the import of milk and milk products, egg powder, meat and meat products including poultry, fish, and their products, foods for infant nutrition/ infant foods, nutraceuticals, health supplements, foods for dietary uses, probiotic and prebiotic foods, and foods for special medical purposes shall be permitted through only 79 designated ports which are directly manned and managed by FSSAI.
Source: https://fssai.gov.in/upload/advisories/2023/02/63dd205dc1304Port_Restriction.pdf
The Food Safety and Standards Authority of India (FSSAI) has directed manufacturers including re-packer and re-labellers to upload or link mandatory lab testing reports, every six months on FOSCOS.
Conditions of License number 12 annexure-3 of schedule 2 of FSG (Licensing and Registration) of food businesses, 2011 specifies that food business operator shall ensure testing of relevant chemical and/or microbiological contaminants in food products in accordance with these regulations as frequently as required on the basis of historical data and risk assessment to ensure production and delivery of safe food through own or NABL accredited /FSSAI notified labs at least once in six months.
Source: https://fssai.gov.in/upload/advisories/2023/01/63c123ad24b17Order_Manufacturer.pdf
December 2022
EDUCATION
The University Grants Commission (UGC) has published draft regulations for foreign universities looking to set up campuses in India. As per the guidelines only those foreign universities which are duly recognised and reputed in their home jurisdictions and have secured a position within the top 500 of overall / subject-wise global rankings will be eligible to set up campuses in India after securing due approval from the UGC. The initial approval for such universities shall only be for 10 years and will be renewed in the ninth year subject to meeting of certain conditions.
Only full-time programmes in physical mode and not online or distance learning may be offered by foreign universities. These universities will have the freedom to devise their own courses, admission process and fee structure. Foreign universities will have to ensure that the quality of education imparted at their Indian campuses is on par with their main campus. Cross-border movement of funds by such universities shall be governed by the Foreign Exchange Management Act. Further, Indian campus of a foreign university may not act as representative office of the parent entity. .
Source: https://www.ugc.ac.in/pdfnews/9214094_Draft-Setting-up-and-Operation-of-Campuses-of-Foreign-Higher-Educational-Institutions-in-India-Regulations-2023.pdf
The University Grants Commission (UGC) has notified the University Grants Commission (Categorization of Universities (only) for Grant of Graded Autonomy) (First Amendment) Regulations, 2022 further amending the University Grants Commission (Categorization of Universities (only) for Grant of Graded Autonomy) Regulations,2018. The amendment states that Universities may offer courses in the Open and Distance Learning mode, without the approval of the Commission, provided it satisfies all the conditions laid down under the regulations, by whatever name they orc called, pertaining to open and distance learning mode notified by the UGC from time to time. Universities may offer courses in the Open and Distance Learning mode, with approval of the Commission, provided it satisfies all the conditions down under the regulations, by whatever name they are called, pertaining to open and distance learning mode notified by the UGC from time to time.
Source: https://www.ugc.ac.in/pdfnews/9087783_Graded-Autonomy-First Amendment-Regulation-2022.pdf
The University Grants Commission (UGC) has issued a notification for introduction of Common University Entrance Test (CUET) UG/PG 2023 for admission into UG/PG programs in Central Universities and other participating Universities. CUET aims at providing a common platform and equal opportunities to candidates across the country, especially those from North-East, rural, and other remote areas, and helps to establish better connections with the Universities. The process of application for CUET-UG 2023 is likely to be started in the first week of February 2023 and the examination will be conducted between the 21 and 31 of May 2023.For Post-graduate programs CUET-PG 2023 is expected to be held in the first/second week of June 2023, and the tentative schedule of the same will likely be announced in the first week of January for the same. Some of the features of CUET UG/PG 2023 are:Pattern of question papers and number of subjects will remain the same. A candidate can opt for as many as 6 Domain subjects in addition to the General Test and one/two languages. Multiple regional languages are allowed as medium of examination - Kannada, Malayalam, Marathi, Odia, Punjabi, Tamil Assamese, Bengali, English, Gujarati, Hindi, Telugu, and Urdu.Results of CUET-UG are expected to be announced in June 2023, third week 2023 and for CUET-PG in the July 2023, first week so that the academic session begins by August 2023.
Source: https://www.ugc.ac.in/pdfnews/9686529_CUET-Letter_0001.pdf
Amendments have been made to the Establishment of Medical College Regulations, (Amendment), 2022 published by National Medical Commission.Addition has been made to “Qualifying Criteria” as below:
“The condition of ‘fully functional hospital for a minimum period of 2 years shall not apply in case of Universities or deemed to be universities within the meaning of the University Grants Commission Act, 1956, having experience in establishing and running fully functional recognized medical colleges and hospital of 1000 beds or more, for at least two years, anywhere in India, provided that: -
(i) The building of both the hospital and the medical college is owned and managed by the same organization.
(ii) The building of the proposed medical college has not been used for any other purpose before making an application to the Medical Assessment and Rating Board (MARB) of the National Medical Commission (NMC) for the establishment of new medical colleges.
(iii) At the time of application, the said medical college has an established multi-specialty hospital with at least 1000 in-patient beds and fulfilling all other norms under the regulation.”
Source: https://www.nmc.org.in/MCIRest/open/getDocument?path=/Documents/Public/Portal/LatestNews/241078.pdf
DATA PROTECTION AND PRIVACY
Security practices and procedures of The Digital Personal Data Protection Bill, 2022 have been notified by the Ministry of Electronics and Technology (MeiTY), through a press release listing the security practices and procedures that a body corporate or any person collecting, receiving, possessing, storing, dealing, or handling information on behalf of the body corporate is required to observe for protecting the personal data of users. These practices and procedures include the requirements that such body corporate or person publish on the website a policy for privacy and disclosure of personal information, data or information, to use information collected for the purpose for which it has been collected, to keep it secure and to obtain the prior permission of the information provider for disclosing personal data.
Source: https://pib.gov.in/PressReleseDetail.aspx?PRID=1881402
The Ministry of Electronics and Information Technology (MeitY) has issued rules regarding the Digital Security of Citizens to ensure that the Internet in India is Open, Safe, Trusted, and Accountable for the citizens. Specific obligations have been cast on intermediaries vis-à-vis what kind of information is to be hosted, displayed, uploaded, published, transmitted, stored, or shared. The IT Rules, 2021 also require intermediaries to remove any content violative of any law for the time being in force as and when brought to their knowledge either through a court order or through a notice by an appropriate government or authorized agency.
The following due diligence is to be conducted by the intermediaries:
- To publish their rules and regulations, privacy policy, and user agreement on their website and app.
- To inform their users of the said rules and to make reasonable efforts to cause the users not to host, display, upload, modify, publish, transmit, store, update or share, among others, information that belongs to another person, or is obscene, or is invasive of another’s privacy, or is insulting or harassing on the basis of gender, or is racially or ethnically objectionable, or encourages money laundering, or promotes enmity between different groups on the grounds of religion or caste with the intent to incite violence, or is harmful to the child, or infringes IPR or impersonates another person, threatens the unity, integrity, defense, security, the sovereignty of India, public order, prevents investigation, or violates any law.
- To provide information or assistance for prevention, detection, investigation, or prosecution under the law, or for cyber security incidents upon receipt of an order from a lawfully authorized government agency.
- To establish a grievance redressal machinery to resolve complaints of violation of the rules within 72 hours of report.
- In case of significant social media intermediary having more than 50 lakh registered users in India, to appoint a Chief Compliance Officer, a nodal contact person for 24x7 coordination with law enforcement agencies and a Resident Grievance Officer, publishing monthly compliance reports, etc.
Failure to follow diligence as provided in the IT Rules, 2021, by intermediaries, shall result in their loss of exemption from liability under section 79 of the IT Act and shall be liable for consequential action.
Source: https://pib.gov.in/PressReleseDetail.aspx?PRID=1885363
A press release is issued by The Ministry of Electronics and Information Technology, (MeiTY) on regarding the Mandatory Verification of Social Media Accounts by an intermediary under the IT rules. The move is aimed at ensuring an Open, Safe Trusted, and Accountable Internet by addressing the risk posed by fake accounts. The due diligence required of an intermediary under the IT Rules also includes the following:
(i) To make reasonable efforts to cause the users not to host, display, upload, modify, publish, transmit, store, update or share, among others, information that deceives or misleads the addressee about the origin of the message or knowingly and intentionally communicates any misinformation or information which is patently false and untrue or misleading in nature, or impersonates another person.
(ii) In the event of a violation of the above, do not host, store or publish, voluntarily or upon actual knowledge on receipt of a grievance or court order or notice from the appropriate government or its agency, unlawful information prohibited under the law in relation to defamation, the interest of public order, decency or morality, or incitement to an offense relating to these.
(iii) To provide, upon receipt of an order from a lawfully authorized government agency, information or assistance for prevention, detection, investigation, or prosecution under the law.
(iv) To have in place a grievance redressal machinery and resolve complaints of violation of the rules within 72 hours of being reported.
Section 66D of the IT Act penalizes cheating by impersonating by means of any communication device or computer resource and the same is punishable with imprisonment of up to three years and a fine of up to one lakh rupees. It has been categorised as a cognizable offense, empowering State police departments to take preventive and penal action as per law in respect of the same.
Source: https://pib.gov.in/PressReleseDetail.aspx?PRID=1882060
BUSINESS
The Department of Telecommunication (DoT) has examined a notification requesting for removal of export requirements and an extension in timelines for registering IMEIs of locally manufactured phones and stipulated the following:
(1) The requirement of registration of IMEIs of mobile phones being manufactured in the country for export is kept in abeyance till further orders.
(2) The request to give additional 3 months’ time for the rules to be effective is not accepted and rule 4 (1) of the prevention of tampering of the Mobile Device Equipment Identification Number (Amendment) Rules, 2022 shall come into force with effect from January 1, 2023.
The Ministry of Commerce and industry, through a press release announced the revision of the scheme Start-Ups Intellectual Property Protection (SIPP). The scheme was aimed at facilitating start-ups in filing and processing their patent, design, or trademark application through the assistance of IP facilitators. The facilitator’s fee is borne by the office of the Controller General of Patents Designs and Trademarks, Department for Promotion of Industry and Internal Trade, Government of India
Now, the scheme has been revised and facilitation fees have been notably increased by at least 100% to further encourage the IP facilitators to provide quality services to start-ups in order to increase the number of IP Applications filed by them, Additionally, start-ups are also being provided fee rebates under respective IP legislations. Start-ups are provided an 80% fee rebate in filing patent applications and a 50% fee rebate in filing trademark applications. Provisions are also made for fast-tracking examination of start-up patent applications.
Source: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1880465
The Ministry of Electronics and Technology (MeiTY), has issued a Press release regarding the Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and introduced four new schemes.A financial incentive of 25% on capital expenditure for the identified list of electronic goods that comprise the downstream value chain of electronic products, i.e., electronic components, semiconductor/display fabrication units, ATMP units, specialized sub-assemblies, and capital goods for manufacture of aforesaid goods has been provided by the SPECS scheme. Applications for the scheme may be filed till March 31, 2023.
Many other flagship schemes have been launched apart from SPECS, such as the Production Linked Incentive (PLI) Scheme which extends an incentive of 6% to 4% on incremental sales (over a base year) of goods under target segments that are manufactured in India to eligible companies, for a period of five years.Under the PLI scheme, four new schemes have been introduced, Modified Scheme for setting up of Semiconductor Fabs in India, Modified Scheme for setting up of Display Fabs in India, Modified Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab / Discrete Semiconductors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India, Design Linked Incentive (DLI) Scheme.
This incentive will be available to the approved projects under the scheme for the investment made within 5 years from the date of acknowledgment of the application subject to minimum threshold value of capital expenditure being met and commencement of commercial production, and compliance to other terms and conditions stipulated in Scheme /Guidelines / Approval Letter.
Source: https://pib.gov.in/PressReleseDetail.aspx?PRID=1881407
The Ministry of Science and Technology has issued the National Geospatial Policy, 2022, approved by the Union Cabinet.
The National Geospatial Policy, 2022 (the Policy) seeks to strengthen the Geospatial sector to support national development, economic prosperity, and a thriving information economy.
The main aim of the policy is to make India a World Leader in Global Geospatial space with the best in the class ecosystem for innovation. The policy aims to develop a coherent national framework in the country and leverage it to move towards a digital economy and improve services to citizens. It also seeks to enable easy availability of valuable Geospatial data collected utilizing public funds, to businesses and the general public and have a thriving Geospatial industry in the country involving private enterprise.
Source: https://dst.gov.in/sites/default/files/National%20Geospatial%20Policy.pdf
LABOUR LAW
The Employees’ State Insurance Corporation, Haryana has issued notification regarding Online registration through MCA Portal and inspection of the units stating the following:
Units registered with MCA are to start the compliance of various applicable provisions of ESI Act, 1948 from the date the threshold limit of employees is reached. Companies registered through MCA portal and not coming under the purview of Statutory Provisions of the ESI Act, have been exempted from making compliance for the next 6 months or till they reach the threshold of ESIC coverage, whichever is earlier. This can be done by logging in the ESIC website to further extend the ‘dormant’ mode after 6 months. Failure to immediately extend the ‘dormant’ mode by companies will automatically activate the registration and the company has to start compliance under ESIC Act. Action will be taken against defaulters.
The Bombay High Court has made important observations in the case of Chanda Kochhar v ICICI Bank Limited [Suit Number 114 of 2022] regarding revocation of retirement. The issue before the court was ‘could the employer bank could treat employee’s services as having been ended by way of termination for cause, especially when previously request for an early retirement had been excepted by the employer. In its Interim order the court accepted the employer bank’s contention that the bank did not have knowledge of all facts regarding the misconduct and breaches of the employee at the time of the request for early retirement and its acceptance. Therefore, the revocation of the early retirement acceptance by the employer was valid in the present case. The court relied on the fact that since an inquiry was ongoing at the time early retirement was offered, the employer bank could neither have asked the employee to resume her duties as the MD and CEO or terminated the services of the employee as MD and CEO pending the inquiry. Hence, the employer was left with only one option, that was to accept employee’s request for early retirement without being aware of the full facts regarding the employee’s conduct. However, on the issue of whether employee was entitled to demand reinstatement of her ESOPs on the basis that her employment had ended not by way of termination for cause but by early retirement. The court observed that the ESOP contract is separate from the employment contract and is specifically meant to reward the employee’s good performance by giving them a stake in the Company’s future. Therefore, the court held that ‘good conduct’ cannot mean that in future if the misconduct of an employee is discovered after their retirement, such ESOPs can be revoked. Employee was thus entitled to retain them.
FSSAI
The Food Safety and Standards Authority of India (FSSAI) on has further amended the Food Safety and Standards Regulations.
In “General principles” Reduction of disease risk claims by manufacturers shall specify the number of servings of the food per day for the claimed benefit.”;
A disclaimer shall be mentioned prominently on the front of the pack of the label where the meaning of a trademark, brand name, or fancy name containing adjectives such as “natural”, “fresh”, “pure”, “original”, “traditional”, “authentic”, “genuine”, “real”, appearing in the labeling, presentation or advertising of a food is such that it is likely to mislead the consumer as to the nature of the food.The disclaimer shall state that this is only a brand name or trademark, or fancy name and does not represent its true nature; (to be chosen as applicable). Size of the disclaimer is also specified.
Procedure for redressal of non-compliance has been amended to state that the food business operator or the marketer is to submit the information sought within thirty days from the date of receipt of letter seeking clarification.
Source: https://egazette.nic.in/WriteReadData/2022/241043.pdf
November 2022
DATA PROTECTION AND PRIVACY
The Ministry of Electronics and Information Technology ("MeitY") has released an updated data protection bill for India named the Digital Personal Data Protection Bill, 2022 ("DPDPB"), after a series of draft laws. The current version of the DPDPB is more business friendly and less complicated, than its predecessors. Key points of the new DPDPB are:
- Personal Data is no longer categorised into ‘sensitive’ and ‘critical’ data which required more complicated compliance obligations. The DBDPB has removed 'non-personal data' from the applicability of law.
- The DBDPB covers the processing of personal data within India if such personal data is collected from data principals (individuals to whom personal data relates) online or if such data is collected offline but is subsequently digitised. Processing of personal data outside India also falls within the scope of the DBDPB if the processing is done for profiling or activity of offering goods or services to, Indian data principals.
Processing of personal data can be done on the following grounds:
Consent: The primary ground for processing of personal data is consent. The new DPDPB also takes into account the concept of "deemed consent", which is broader as it considers a data principal to have given consent for the processing of their personal data if (a) such data has been shared voluntarily, (b) the processing activity is necessary for the provision of any service or benefit by the State, (c) the processing is necessary for compliance with any law or judgment, (d) the processing is necessary for responding to a medical emergency or for providing medical treatment, (e) the processing is in connection with employment purposes, or (f) if the processing is necessary for ensuring public safety and public interest. Additionally, the government has the right to prescribe additional grounds for processing.
Languages and Translations: The DPDPB creates an obligation for information notices about processing activities to be provided to data principals by data fiduciaries. Data fiduciaries are, persons who alone or in conjunction with others determine the purposes and means of processing personal data. These notices must be made available in English as well the 22 Indian languages listed in the eighth schedule of the Indian Constitution.
Localisation Relief: The new DPDPB does not have a localisation requirement unlike previous versions. However, cross border transfers may only take place on the basis of adequacy decisions issued by the Indian government, with a few exceptions for public interest, enforcement actions, and law order. Presently no indications have been given on which jurisdictions may fall within the scope of adequacy.
Data Protection Board of India: A new authority, The Data Protection Board of India ("Board") shall be responsible for enforcing the provisions of DPDPB. Its composition is to be specified at a later stage but it will operate as an independent body and function in a "digital by design" manner. The Board will act upon complaints made by affected individuals, central or any state government references, court directions, or a data principal’s failure to comply with their obligations under the law. Appeals will lie with High Courts against decisions of the Board. Power to refer complaints to mediation or other dispute resolution mechanisms have also been given to the board.
Penalties: Financial penalties of up to INR 500 crores in each instance may be imposed by the board if it determines signification non-compliance by an individual or entity. Data principals may also face penalties for a breach of their obligations under the DPDPB.
The Australian Parliament passed the Privacy Legislation Amendment (Enforcement and Other Measures) Bill 2022 (Bill) which was introduced to parliament on October 26, 2022.
The following have been amended by the bill:
- Privacy Act 1988 - The Australian Information Commissioner’s enforcement and information sharing powers have been expanded and penalties for serious or repeated interferences with privacy have been increased;
- Australian Communications and Media Authority Act 2005- The Australian communications and media authority has been enabled to disclose information to a non-corporate commonwealth entity that is responsible for enforcing one or more laws of the commonwealth; and
- Australian Information Commissioner Act 2010- The Australian information commissioner has been allowed to delegate certain functions or powers.
The maximum penalties for serious or repeated privacy breaches have been increased from the current $2.22 million for organisations to an amount not more than the higher of the following:
- $50 million;
- 3 times the value of that benefit that the body corporate, and any related body corporate, have obtained directly or indirectly and that is reasonably attributable to the conduct constituting the contravention, if the value of the benefit can be determined by the court.
- if the value of that benefit cannot be determined by the court —30% of the adjusted turnover of the body corporate during the breach turnover period for the contravention.
Angelene Falk, Australian information commissioner has said the changes create “closer alignment with competition and consumer remedies” under the EU GDPR and “facilitate engagement with domestic regulators and our international counterparts to help us perform our regulatory role efficiently and effectively.”
The increase in penalties is being seen as intended to act as a powerful deterrent, so organisations no longer see privacy risk as a ‘risk of doing business’.
EDUCATION
A five Judge bench of the Supreme Court of India upheld the 10% EWS reservation in government jobs and educational institutions to the economically weaker sections of the society. The majority view, in the 3-2 verdict of the Constitution Bench, described reservation as “an instrument not only for inclusion of socially and educationally backward classes to the mainstream of society, but also for the inclusion of any class or section so disadvantaged”. Justices Dinesh Maheshwari, Bela M Trivedi and JB Pardiwala affirmed the amendment, while Chief Justice of India UU Lalit and Justice Ravindra Bhat dissented, recording their dissent as EWS quota is “contradictory to the essence of equal opportunity” and “strikes at the heart of the equality code”. The Bench agreed that the state has been given the power under the provision to make special provisions for admissions to private unaided institutions. Justice Pardiwala and Trivedi also noted that reservation was originally intended for a limited period and that there’s a need to revisit and align it with the present scenario. Justice Pardiwala said that, “Reservation, should not be allowed to become a vested interest.” Justice Trivedi held that “treating economically weaker sections of citizens as a separate class would be a reasonable classification, and could not be termed as unreasonable, or unjustifiable classification, much less a betrayal of basic feature or violative of Article 14”. Subsequently a review petition has also been filed against the judgment by All India Backward Classes Federation in December on the grounds that “EWS is reservation for upper caste/ forward classes, with a creamy layer exclusion. It is social/caste reservation, not solely economic reservation.”
Source: https://main.sci.gov.in/supremecourt/2019/1827/1827_2019_1_1501_39619_Judgement_07-Nov-2022.pdf
Draft University Grants Commission (Institutions Deemed to be Universities) Regulations, 2022 have been issued by UGC to replace The University Grants Commission (Institutions Deemed to be Universities) Regulations, 2019. This has been done to bring the regulations in line with NEP 2020.
As per the preamble the draft seeks to “Regulate in an orderly manner, the process of declaration of institutions of academic excellence as Deemed to be Universities; and, further to maintain the quality of higher education imparted by Institutions Deemed to be Universities consistent with the ideals of the concept of a university;”
Topics covered in this draft are: objectives of an institution deemed to be university, eligibility criteria for an institution to be declared as institution deemed to be University, governance structure, procedure for declaration of an institution as an institution deemed to be University, off campus centre(s), governance, tenure and membership rules of executive council, admission procedure and fee structure among others.
Source:https://www.ugc.ac.in/pdfnews/3316627_UGC-Institutions-Deemed-to-be-Universities 2022.pdf
The (Minimum Standards and Procedures for Award of Ph.D. Degree) Regulations, 2022 have been published by UGC which shall apply to every university, college, and every institution deemed to be a university under section 3 of the University Grants Commission Act, 1956. The regulations stipulate the eligibility criteria for admission to the Ph.D. program. Program duration has been specified as a minimum duration of three (3) years, including course work, and a maximum term of six (6) years from the date of admission to the Ph.D. program. Special relaxations have been given for women candidates.
Additionally, the regulations state the procedure for admission and eligibility criteria to be a research supervisor, co-supervisor. Other regulations for admission of international students in the Ph.D. program, Course Work, evaluation and assessment methods, minimum standards/credits for award of the degree, etc. are also listed. Further requirements for academic, research, administrative, and infrastructure requirements to be fulfilled by colleges to get recognition for offering Ph.D. programs are stated in the regulations along with conditions for grant of Ph.D. degree and issue of a provisional certificate.
Source: https://www.ugc.ac.in/pdfnews/4405511_Draft-UGC-PhD-regulations-2022.pdf
The University Grants Commission (UGC) has issued guidelines for engagement of ‘Professors of Practice’ in Universities and Colleges. One of the proposals made by the National Education Policy 2020 is the provision of comprehensive education in higher education institutions which necessitates the involvement of professionals, experts from the industry, etc. in the teaching and learning process. A new position named "Professor of Practice" has been introduced by UGC for this purpose and the instructions for engaging Professors of Practice have been published. Additionally, the UGC has written to all HEls regarding the rules for the engagement of a Professor of Practice. The eligibility criteria for appointment of such Professors of practice are given as “Distinguished experts who have made remarkable contributions in their professions from various fields such as engineering, science, technology, entrepreneurship, commerce, social sciences, media, literature, among others and have proven expertise in their specific profession or role with at least 15 years of service/experience, preferably at a senior level.” Lack of formal academic qualification will not disqualify a person having exemplary professional practice from such appointment. It is also stipulated that at a given time number of Professors of Practice in a higher educational institute should not exceed 10% of total sanctioned posts in the HEI. It has been requested that vice-chancellors of universities and principals of colleges initiate and make necessary changes in their statutes/ordinances/rules/regulations for the engagement of Professors of Practice in their institutions. Action taken in the matter is to be shared in the university activity monitoring portal (uamp.ugc.ac.in).
The UGC has reiterated its order issued in August 2022 which required all colleges and universities to ensure full refund for students who wish to migrate or cancel their admission before October 31, 2022. It has warned that failure to comply will result in the loss of eligibility to receive UGC grants withholding of grant allocated to it, withdrawal of its university affiliation or loss of its deemed-to-be-university status for the institute. The UGC order was made necessary due to delay in several entrance exams such as CUET, JEE Main and Advance holding up admissions for lakhs of students at some of the top public funded institutions. This reiteration is issued in light of some private universities levying heavy penalties on students who wished to migrate to central universities. UGC has made it clear that the fee is to be refunded in totality and in case cancellation or withdrawal is made before December 31, 2022 only upto Rs. 1000 may be deducted as processing fee.
Source: https://www.ugc.ac.in/pdfnews/6613465_Refund_of_Fees_Letter_0001.pdf
RESERVE BANK OF INDIA
Notification has been issued by the Reserve Bank of India (RBI) regarding the operationalization of the Central Bank Digital Currency – Retail (e₹-R) Pilot. The e₹-R will be in the form of a digital token representing legal tender to be issued in the same denominations that paper currency and coins are currently issued. The distribution of digital tokens would be through intermediaries, i.e., banks, and the users can transact with e₹-R through a digital wallet offered by the participating banks stored on mobile phones/devices. Transactions can be both Person to Person (P2P) and Person to Merchant (P2M).
Currently eight banks have been identified for participation in this pilot which shall be done in a phased manner. In the first phase four banks, viz., State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank in four cities across the country will participate. Second phase will see four more banks, viz., Bank of Baroda, Union Bank of India, HDFC Bank, and Kotak Mahindra Bank joining this pilot. Initially four cities, viz., Mumbai, New Delhi, Bengaluru, and Bhubaneswar will be covered and later extend to Ahmedabad, Gangtok, Guwahati, Hyderabad, Indore, Kochi, Lucknow, Patna, and Shimla.
Source: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=54773
The Reserve Bank of India (RBI) has re-issued the ‘Master Direction on Import of Goods and Services’ compiling the instructions issued on the import of goods and services into India. Any deferred payment arrangements (including suppliers’ and buyers’ credit) entered into for upto 3 years for import of capital goods and up to one year in case of import of non-capital goods shall be treated as trade credits. Where usance import bills have been pre-paid, remittances may be made only after reducing the proportionate interest for the unexpired portion of usance. This reduction shall be at the rate at which interest has been claimed or LIBOR/any other widely accepted/alternative reference rate of the currency in which the goods have been invoiced, whichever is applicable. If interest is not claimed separately or indicated expressly, remittances may be allowed after deducting the proportionate interest for the unexpired portion of usance at LIBOR/any other widely accepted/alternative reference rate 15 of the invoice currency.
Source: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/12MDFB8AD1B34BCB4D0A8F6869DA4A53082E.PDF
FINANCIAL LAW
A scheme for financial support for project development expenses of PPP Projects – IIPDF Scheme (India Infrastructure Project Development Fund Scheme) has been notified by the Ministry of Finance (MoF). The IIPDF Scheme will aim to increase the quality and quantity of PPP projects processed through the central or states project pipeline. It will enable the project sponsoring authority to source funding upto Rs. 5 crore for a single proposal, to cover the PPP transaction costs. This funding shall be inclusive of any tax implications. Funding requirements over and above Rs.5 Crore are to be borne by the project sponsoring authority. The project development funding, will be in the form of a grant subsidy and are not to be recovered.
Source: https://egazette.nic.in/WriteReadData/2022/240026.pdf
The National Payments Corporation of India (NPCI) has issued a notification for the handling of customer complaints through the NPCI website for IMPS transactions in reference to RBI circular for digital payments dated August 06, 2020. In the circular, RBI has advised banks & NBFCs to implement an online dispute resolution process for handling and resolving customers’ complaints. Banks and NBFCs are also to provide access to customers to lodge disputes and grievances regarding failed transactions. Option for customers to lodge complaints for IMPS transactions has been enabled on the NPCI website. Customer shall receive a complaint reference number (CRN) upon lodging a complaint. Customers and member banks will be able to check the status of the transaction and the status of the complaint raised, on the NPCI website through the CRN number. The adjustment report shall contain details of the complaint, made available to the members. Once the dispute is resolved the complaint shall be auto-closed by the system. If a customer does not receive resolution of their complaint for more than 30 days, they shall have the option of approaching the banking ombudsman for redressal.
Source: https://www.npci.org.in/PDF/npci/imps/circular/2022/OC-113-Customer-complaint-through-NPCI-website-for-IMPS-Transactions.pdf
FAQs on Social Stock Exchange (SSE) have been issued by The Bombay Stock Exchange (BSE). The FAQs essentially revolve around questions on Social Stock Exchange (SSE), addressing important issues such as eligibility to get registered or raise funds through Social Stock Exchange/stock exchange; meaning of for-profit social enterprise in the context of a Social Stock Exchange; criteria for registration on the Social Stock Exchange in respect of not-for-profit organizations among others.
Source: https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20221122-49
LABOUR LAW
ESIC has launched their online maternity benefit claim facility. This facility was launched by Shri Bhupender Yadav, Union Minister of Labour & Employment to make the benefits easily accessible to the beneficiaries at their convenience. This new facility will make the process of claiming maternity benefits for insured women easier as the process has now been made online, where the beneficiaries, can now claim the maternity benefits from anywhere at their convenience. Earlier, beneficiaries had to visit the respective branch offices physically for claiming the maternity benefits. Maternity benefit is given in the form of cash benefit in case of certain contingencies such as in the advanced stage of pregnancy, after delivery / in the unfortunate event of confinement or miscarriage and who meet the eligibility conditions. Payment at the rate of 100% of wages is paid for of 26 weeks as maternity benefit to the insured woman by ESIC to compensate for the loss of income during her childbirth. Maternity benefit of Rs 37.37 crore during the year 2021-22 has been provided to a total of 18.69 lakh women.
Source: https://www.esic.nic.in/attachments/circularfile/1ab10ebef182b2d3193ea31a49e66166.pdf
DIRECTORATE GENERAL OF FOREIGN TRADE
The Ministry of Commerce & Industry (MoCI) has launched ICEGATE Helpdesk providing for the redressal of grievances related to Remission of Duties and Taxes on Export Products (RoDTEP). Grievances such as resolution/examination of exporter grievances related to scrolling out of shipping bills, generation of e-scrips, and transfer of e-scrips are included in the helpdesk which provides 24x7 service to exporters to lodge their grievances by calling a toll-free No. 1800-3010-1000 or by emailing (icegatehelpdesk@icegate.gov.in) .Email for escalation is also given: jsdbk-rev@rite.in
Source: https://content.dgft.gov.in/Website/dgftprod/081063a7-7453-4dfa-9831-67917f528cd8/TN%2020.pdf
ENVIRONMENT
The Ministry of Environment, Forest and Climate Change (MoEFCC) issued The E-Waste (Management) Rules, 2022 to come into force on April 01, 2023. The rules shall apply to every manufacturer, producer refurbisher, dismantler and recycler except for those specifically excluded. The Rules notify about the Extended Producer Responsibility Framework and discuss the Responsibilities of the Manufacturer, producer, refurbisher, etc. involved in manufacture, sale, transfer, purchase, refurbishing, dismantling, recycling and processing of e-waste or electrical and electronic equipment listed in Schedule I, including their components, consumables, parts and spares which make the product operational but it does not apply to
(a) waste batteries as covered under the Battery Waste Management Rules, 2022;
(b) packaging plastics as covered under the Plastic Waste Management Rules, 2016;
(c) micro enterprise as defined in the Micro, Small and Medium Enterprises Development Act, 2006; and
(d) radio-active wastes as covered under the provisions of the Atomic Energy Act, 1962.
Entities falling under the ambit of the rules must register on the portal as manufacturer; producer; refurbisher; or recycler. All manufacturer are required to collect e-waste generated during the manufacture of any electrical and electronic equipment and ensure its recycling or disposal; file annual and quarterly returns in the laid down form on the portal on or before end of the month succeeding the quarter or year, as the case may be, to which the return relates
Producers of electrical and electronic equipment are to create awareness through media, publications, advertisements, posters or any other means of communication. Producers must also file annual and quarterly returns in the laid down form on the portal on or before the end of the month succeeding the quarter or year to which the return relates. Extended producer responsibility targets must be obtained and implemented by them as per Schedule-III and Schedule-IV through the portal.
Refurbishers must collect and handover e-waste generated during the process of refurbishing and to registered recycler and upload information on the portal; the refurbished equipment shall be as per Compulsory Registration Scheme of the Ministry of Electronics and Information Technology and Standards of Bureau of Indian Standards framed for this purpose. Refurbishers must file annual and quarterly returns in the laid down form on the portal on or before the end of the month succeeding the quarter or year, to which the return relates.
Source: https://egazette.nic.in/WriteReadData/2022/239987.pdf
October 2022
LABOUR LAW
In reference to the provisions of MAP (II-B) of EDLI (Employees’ Deposit Linked Insurance) Scheme 1976, the Ministry of Labour and Employment (MoLE) has issued a notification to ease the process of disbursement under the EDLI scheme. The EDLI scheme is a mandatory insurance cover provided to all subscribers of EPF scheme wherein the insurance cover depends on the salary drawn in the last 12 months of the employment before death
The relevant provisions of MAP (II-B) of EDLI Scheme 1976 state that
- The assurance benefit is payable on the death of the member, while in service.
- In cases where an employee member was on leave without wages (consequently no contribution was payable by the employer) or absent for any other reason and expired during the period, the assurance benefit is admissible irrespective of the fact that no contribution was paid by the employer, provided he was on the muster rolls of the establishment on the day of death and satisfied the prescribed conditions.
Upon receiving complaints about some offices rejecting the claim benefits under EDLI scheme stating that contribution was not received for preceding days even where an employee has died while in service, on account of such NCP days, all ZOS/ROS have been directed to settle the claims strictly in accordance with scheme provisions. It has also been stipulated that all verification should be done within 7 days without causing any distress to the family of the deceased employee. Enforcement officer is also required to list out clearly the reason for rejecting the employer’s claim where the employer denies the member’s name in the muster rolls and the EO says otherwise.
Source: https://www.epfindia.nic.in/site_docs/PDFs/Circulars/Y2022-2023/EDLI_18102022.pdf
The Government of Haryana has revised minimum wages with effect from July 01, 2022, in the State of Haryana. Some of the revised rates are listed below:
- Unskilled workers- Rs.10098.88.
- Semi-skilled (A) workers- 10603.78, Rs.11133.96.
- Semi-skilled (B) workers- 11690.67, Rs.12275.21.
- Skilled (A) workers- Rs.12888.97.
- Skilled (B) workers- Rs.10603.78.
- Highly Skilled workers- Rs.11133.96.
Detailed list of revised minimum wages has been published in Notification No. IR-2/2022/33216-33346
Source: https://storage.hrylabour.gov.in/uploads/labour_laws/Y2022/Oct/W2/D14/1665753557.pdf
The Government of Delhi has revised the minimum rate of wages of the scheduled employment, to be payable with effect from October 01, 2022. Some of the revised rates are listed below:
- Unskilled workers- Rs.646/- per day and per month is Rs.16,792/-
- Semi-skilled- Rs.712/- per day and per month is Rs.18,499/-
- Skilled- Rs. 783/- per day and per month is Rs.20,357/-
For Clerical and Supervisory Staffs in all Scheduled employments the following rates of minimum wages will be applicable:
- Non-Matriculate - Rs.712/- per day and per month is Rs.18,499/-
- Matriculate but not Graduate - Rs.783/- per day and per month is Rs.20,357/-
- Graduate and above - Rs.852/- per day and per month is Rs.22,146/-
The revised minimum rate of wages will be effective from October 01, 2022.
Source: https://labour.delhi.gov.in/sites/default/files/All-PDF/DA%20order...pdf
A district court in Delhi has recently held that using the word ‘F**k off’ to address a woman is offensive and constitutes Sexual harassment.
Additional Sessions Judge, Sanjay Sharma of Tis hazari Court in Delhi upheld the charges framed against the accused by a Mahila court in August, under IPC sections 354A (sexual harassment), 509 (word, gesture or act intended to insult the modesty of a woman) and 506 (punishment for criminal intimidation). The argument presented by the accused, that the phrase is used to ‘ask someone to leave’ as per its dictionary meaning, was rejected by the court and it was further stated by the court that “in the Indian society, schools and colleges this word is not used to ask anyone to leave. In ordinary sense, the said word is abusive, offensive and humiliating”.
Thus, in the light of facts and circumstances the charges of sexual harassment against the accused were upheld.
EDUCATION
The International Financial Services Centres Authority (IFSCA) has published International Financial Services Centres Authority (Setting up and Operation of International Branch Campuses and Offshore Education Centres) Regulations, 2022. The regulations are aimed at enabling foreign universities to establish International Branch Campuses (IBC) and allowing an offshore educational centre (OFC) to be established by a foreign educational institution not being a foreign university for both Indian and international students. These International Branch Campuses are expected to promote research in the areas of banking, insurance, capital markets, funds management, fintech, longevity finance, sustainable finance, quantum computing, etc. so that top-tier human resources in the financial, technological, and associated industries are created. The move is also aimed at protecting the interests of the student community who enrol in such programmes.
The regulation specifies the following details:
- Permitting research programmes in financial management, fintech, science, technology, engineering, and mathematics.
- Procedure for grant of registration, eligibility and application for registration
- Enforcement action including suspension, cancellation of registration, and imposition of penalty by the authority for violation of these regulations
- Provision for maintenance of accounts and annual reports by the International Branch Campuses (IBC) or offshore educational centre (OEC) as may be specified by the authority.
A Three-judge bench of the Hon’ble Supreme Court of India (SC) in the case of New Noble Educational Society v. CCIT and Another, 2022 SCC OnLine SC 1458, has laid down, inter alia, that for Exemption under Section 10 of the IT Act, the word ‘solely’ is to be read to mean exclusively and not primarily. Earlier SC judgements had held the prevailing view that for the purpose of Specified Exemption, the Predominant Test would suffice i.e., whether only the predominant purpose of the institution should be education or the educational institution should be exclusively engaged for the purpose of education (Predominant Test).
More clearly, the Supreme court order means that all the objects of an institution seeking exemption under Section 10 must relate to imparting education or in relation to educational activities. There is no bar on earning surplus income by these institutions provided it be generated through education related activities only.
Educational institutions have eligibility for tax exemption under two categories under the IT Act in separate provisions. One exemption is available to institutions involved in any ‘charitable work’ (i.e., relief to poor, education, medical relief, advancement of any other object of general public utility and the other exemption under Section 10 covers specific categories of educational institutions only – one such category being “any university or educational institution existing ‘solely’ for educational purposes and not for purposes of profit” (Specified Exemption).
In the present case the rejection of registration application for exemption made by an educational institution under Section 10(23C)(vi) by the income-tax authority on the ground that (a) all the institution’s objects mentioned in the charter documents were not exclusively for educational purposes, and (b) registration of the institution was not done under the state-specific laws regulating charitable institutions was challenged before the Hon’ble Andhra Pradesh High Court (HC), but the HC rejected the challenge. The institution then approached the Supreme Court.
The SC however clarified that this Judgment will apply prospectively to give time to potentially affected educational institutions to make suitable changes in their activities, charter documents etc.
Source: https://main.sci.gov.in/supremecourt/2012/25090/25090_2012_1_1502_39247_Judgement_19-Oct-2022.pdf
National Credit framework has been issued by the Committee on National Credit Accumulation & Transfer Framework. The framework aims to provide all students with a quality education system by making education more holistic and effective and to emphasize the integration of general education and vocational education including experiential learning with relevant experience and professional levels acquired. The framework makes it imperative to establish and formalize a national credit accumulation and transfer system which will integrate both general & vocational education while ensuring mobility of candidates between the two systems.
Source: https://www.education.gov.in/sites/upload_files/mhrd/files/National_Credit_Framework.pdf
The Insolvency and Bankruptcy Board of India (IBBI) has increased the limit of number of participants for a continuing education course to 200 from 100, previously by further amending the Insolvency and Bankruptcy Board of India (Online Delivery of Educational Course and Continuing Professional Education by Insolvency Professional Agencies and Registered Valuers Organisations) Guidelines, 2020 by The Insolvency and Bankruptcy Board of India (Online Delivery of Educational Course and Continuing Professional Education by Insolvency Professional Agencies and Registered Valuers Organisations) (Amendment) Guidelines, 2022.
Source: https://ibbi.gov.in//uploads/legalframwork/171423e671b649f715ea7e6d01f921ce.pdf
INSURANCE
The Insurance Regulatory and Development Authority of India (IRDAI) has issued a circular stating that mental illness must be covered in all insurance products and all provisions under the Mental Health Care Act, 2017 must be complied without any deviation. All insurers are requested to ensure compliance before October 31, 2022.
Source: https://www.irdai.gov.in/admincms/cms/whatsNew_Layout.aspx?page=PageNo4840&flag=1
The Insurance Regulatory and Development Authority of India (IRDAI) has issued a circular which provides for insurance cover to be extended to newborns/infants under all health insurance policies. Master circular on Standardisation in Health insurance Business dated July 20, 2020 included a Clause under heading ‘exclusions not allowed under health insurance policies’, where internal congenital diseases, genetic diseases, or disorders are not allowed to be incorporated as exclusions in the terms and conditions of the policy contract. This provision intends to cover newborns with internal congenital birth defects from the inception of the policy. Authorities had noticed that many health insurance products were not providing cover to newborns/infants with internal congenital birth defects from the first day, which was violating the genuine intent of the provision. Therefore, it has been stated that all insurance products must cover newborns/unborns under the abovementioned provisions without any deviation and provide, coverage from Day 1 without any waiting periods/sub-limits or any other restrictive conditions being imposed.
Source: https://www.irdai.gov.in/admincms/cms/whatsNew_Layout.aspx?page=PageNo4839&flag=1
BUSINESS LAW
Amendments to Notification number S.O. 2119(E), dated June 26, 2020, which specifies “Certain criteria for classifying an enterprise as micro, small and medium enterprises and various forms and procedures for filing the memorandum” were issued by the Ministry of Micro, Small and Medium Enterprises (MoMSME).
The amendment states that for a period of three years from an increase in terms of investment in plant and machinery, or equipment or turnover or both, resulting in re-classification of an enterprise, said enterprise shall continue to avail all benefits of the MSME category (non-tax) as before the re-classification, for a period of three years from the date of such increase.
Source: https://egazette.nic.in/WriteReadData/2022/239737.pdf
The Ministry of Environment Forest & Climate Change (MoEFCC), issued the procedure for submission of application for registration of producers by CPCB under Rule 4 of the Batteries Waste Management Rules, 2022. Every Producer and person or entity involved in the manufacturing of batteries is required to register with CPCB through the online centralised portal. Till such time as the online centralized portal of CPCB is under development, offline mode is adopted in order to receive applications for registration.
For submission of the application by the producer or manufacturer in offline mode, the producer or manufacturer has to apply for the grant of registration to the Central Pollution Control Board (CPCB) by submitting duly filled Form 1 (A) from the company's email ID. Producer or manufacturer shall also submit a Self-attested copy of the GST Certificate, TIN number, CIN number, Aadhar Card of an authorized person, and Pan Card of the company along with the application form. Initial registration will be granted for 6 months which can be renewed through the online portal.
Credit Guarantee Scheme for Start-ups (CGSS) is issued by the Ministry of Commerce and Industry (MoCI) to provide guarantee to member institutions up to a specified limit against credit instruments extended by them to finance eligible start-ups. This scheme is aimed at providing essential collateral free debt funding to start-ups. The provisions of the scheme as announced include the eligibility criteria for borrowers which have reached a stable revenue stream, as per 12 month’s audit reports, not in default of any lending institution or classified as Non-performing Asset according to RBI guidelines and those who fall under the eligibility criteria certified by a member institution. For a lending/investing institution the eligibility criteria for falling under the scheme is that it should be a Scheduled Commercial Bank and Financial Institution, if NBFC, it should be registered with RBI having a rating of BBB and above as rated by external credit rating agencies accredited by RBI and having minimum net worth of Rs. 100 crores. If an NBFC later becomes ineligible, due to a fall in the credit rating below BBB, it will not be eligible for further guarantee cover till it is upgraded to the eligible category.
Source: https://egazette.nic.in/WriteReadData/2022/239375.pdf
ENVIRONMENT LAW
The Government of India (GOI) has issued notification regarding The National Logistics Policy which is aimed at bringing efficiency in logistics services, and human resources through streamlining processes, regulatory framework, skill development, mainstreaming logistics in higher education and adoption of suitable technologies. The Policy will be focusing on enabling adequate development of warehouses with optimal spatial planning, promotion of standards, digitization and automation across the logistics value chain and better track and trace mechanisms. The institutional frameworks under PM GatiShakti at the Centre and State level, which will also monitor implementation of the Policy, is fully operational.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1861133
LEGAL METROLOGY
The Department of Consumer Affairs made amendments to the Legal Metrology (Packaged Commodities) Rules, 2011, vide Notification No. GSR 779(E) dated November 02, 2021 to promote ease of doing business and protect consumer interests. Extension was sought by various industry representations of the implementation date due to operational issues. Subsequently extension is granted upto December 1, 2022 through notification dated September 30, 2022, to accommodate additional requests from industries and to enable them to use up the existing packaging material. Now, additional modifications to the Legal Metrology (Packaged Commodities) Rules, 2011 are being considered due to requests from industries for increased business efficiency and to lighten the compliance burden along with safeguarding consumer interests. All interested parties, including the following, are asked to provide public feedback on the draft.
Source: https://consumeraffairs.nic.in/sites/default/files/uploads/legal-metrology-acts-rules/PCR.pdf
IT/TELECOM
Description of the Indian Computer Emergency Response Team (CERT-In) in accordance with RFC 2350 has been issued by the Indian Computer Emergency Response Team (CERT-In), Ministry of Electronics and Information Technology, Government of India. As per the description the objectives of CERT-In are preventing cyber-attacks against the country's cyberspace, responding to cyber-attacks and minimizing damage and recovery time by reducing national vulnerability to cyber-attacks.
CERT-In was designated in the Information Technology Act 2000 to serve as the national agency to Collect, analyse, and disseminate information on cyber incidents, Forecast and Issue alerts of cyber security incidents and take emergency measures for handling cyber security incidents. CERT-In will work in collaboration with and seek assistance from certain stakeholders to perform its objectives.
Amendments have been made by the Ministry of Electronics and Information Technology (MeitY) to the First Schedule of the Information Technology Act, 2000, specifying the documents or transactions which have been excluded from the scope of the act.
The schedule has made amendments with respect to entries relating to negotiable instruments, power of attorney and contracts for sale or conveyance of immoveable property as follows:
- In addition to cheques, demand promissory notes and bills of exchange issued in favour of or endorsed by an entity regulated by the Reserve Bank of India, National Housing Bank, Securities and Exchange Board of India, Insurance Regulatory and Development Authority of India and Pension Fund Regulatory and Development Authority (collectively, the “Regulatory Authorities”) have been excluded from the entry relating to negotiable instruments.
- Powers-of-attorney empowering a regulated entity to act for, or on behalf of, and in the name of the person executing them, have been excluded from the entry relating to power of attorney.
- Contracts for sale or conveyance of immovable property or any interest in such property have also been omitted.
It is important to note that the deletion of contracts for sale or conveyance of immoveable property may enable real estate transactions to be executed electronically and further help in the digitization of documents and transactions that were earlier excluded from the application of the IT Act.
Source: https://egazette.nic.in/WriteReadData/2022/239378.pdf
The Universal Service Obligation Fund (USOF) has launched a scheme to fund research and development specifically in communication technology applications focused on academia, research institutes, industry and start-ups to develop and build a telecom system named the Telecom Technology Development Fund (TTDF) Scheme. This scheme will fall under the department of telecommunications. The scheme is also aimed at promoting innovation and technological advances as well as creation of intellectual property
Source: https://usof.gov.in/ttdf
The Competition Commission of India (CCI) has imposed a penalty of Rs 936.44 crore on Google, less than a week after imposing penalty of Rs. 1,338 Cr for its Play Store policies which are seen as an abuse of its dominant market position. A cease-and-desist order was also issued by CCI and google was directed to change its policies within a specific period, including permitting mobile app developers to use third-party payment services on its app store.
“Google has been given 30 days to provide the requisite financial details and supporting documents,” the CCI order said. CCI has noted that Play Store policies that require app developers to use only Google Play’s billing system (GPBS) for receiving payments for apps and other digital products and certain in-app purchases. App developers are also restricted from providing direct links to alternate payment methods in their app or otherwise encourage users to buy their products outside of google app. Without complying with GPBS, developers cannot list their apps on Play Store and consequently lose out on the wide base of potential android using customers.
“Making access to the Play Store dependent on mandatory usage of GPBS for paid apps and in-app purchases is one sided and arbitrary, and devoid of any legitimate business interest. The app developers are left bereft of the inherent choice to use payment processor of their liking from the open market,” the CCI said. CCI noted that Google has not applied this policy on its own apps like YouTube which is seen as an imposition of discriminatory conditions and pricing. An investigation was launched by CCI into Google’s Play Store policies in 2020 and exclusion of rival payment apps such as Paytm, BharatPe, etc. from play store after domestic app developers complained against it.
Sources:
Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules have been notified by the Ministry of Electronics and Information Technology (MEITY) as further amendment to Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. The notification includes important changes like imposing a legal obligation on the intermediaries to take reasonable efforts to prevent their users from uploading harmful/unlawful content. This puts a greater burden on the intermediary for preventing harmful/unlawful content on its platforms.
It has been mandated that rules and regulations of the intermediaries are communicated in regional Indian languages for effective communication. The words ‘defamatory’ and ‘libellous have been removed from the grounds in rule 3(1)(b)(ii) and left it to be decided through judicial review whether any content is defamatory or libellous. Other categories in rule 3 (1) (b) have also been rephrased to deal with misinformation and content which is likely to incite violence between religious communities/castes. Intermediaries are required to respect the users’ rights guaranteed under the constitution, like reasonable expectation of due diligence, privacy and transparency.
The rules provide for the establishment of Grievance Appellate Committee(s) to allow users to appeal against the decisions taken by intermediaries on user complaints. However, users will retain the right to approach courts for any remedy.
Source: https://egazette.nic.in/WriteReadData/2022/239919.pdf
RESERVE BANK OF INDIA (RBI)
The Reserve Bank of India (RBI) vide a notification regarding the expansion of activities by SPDs and allowed them to offer forex products to their Foreign Portfolio Investor (FPI) clients, as part of their non-core activities, from time to time as allowed
SPDs or Standalone Primary Dealers are the entities entrusted with the responsibility of purchasing and selling government securities registered with the RBI. Government securities are bought by these entities directly from the RBI and then offered to other buyers. In this way demand for government securities is created in other markets, including treasury bills and bonds.
As per the new developmental and regulatory policies dated August 05, 2022, SPDs have been allowed to offer all foreign exchange market-making facilities to their clients, subject to adherence to the prudential regulations and other guidelines which will be issued separately.
Additionally, all financial transactions involving the Rupee undertaken globally by related entities of the SPD shall be reported to CCIL’s trade repository before 12:00 noon of the business day following the date of transaction with effect from January 01, 2023,
Source: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT127FA307079EB2C4F688C998752D56571B0.PDF
Concept Note on Central Bank Digital Currency to create awareness about CBDCs in general and the planned features of the Digital Rupee (e₹), in particular have been released by the RBI explaining the objectives, choices, benefits, and risks of issuing a CBDC in India. The note aims at putting forth RBI’s approach towards CBDC.
The concept note details the technology and design choices, possible uses of the Digital Rupee, issuance mechanisms, etc. It also covers the implications of introducing the CBDC on the banking system, monetary policy, and financial stability, as well as its impact on privacy issues. Pilot launches of e₹ are being planned by the RBI for limited use as test cases. The first pilot in the Digital Rupee - Wholesale segment (e₹-W) shall commence on November 1, 2022.
The Central Board of Direct Taxes has issued an order under section 119 of the Income Tax Act, 1961 extending the due date for filing of form 26Q for the second quarter of FY 2022-23 to November 30, 2022 from October 31, 2022. Form 26Q is related to TDS filing. The due date has been extended as the format has been revised and requires updation for filing.
Source: https://incometaxindia.gov.in/communications/circular/circular-21-2022.pdf
CONSUMER LAW
A clarification has been issued by the Food Safety and Standards Authority of India (FSSAI) regarding the application for vegan logo endorsement with reference to FSS (Vegan Foods) Regulations, 2022 and came in force on June 10, 2022.FSSAI has received applications for vegan logo endorsement from a variety of food business operators according to the guidelines for submission of applications for endorsement of vegan logo and formats. However, it was observed that multiple variants of the same product as well as two or more different products were being applied for under a single application by FBOs.
Therefore, it has been clarified that whether an application is for same product with multiple variants and two or more different products, a separate application for each variant/different product needs to be submitted and a single application will not be considered for the same. Payment for each application also must be made separately.
MOTOR VEHICLE ACT
The Ministry of Road Transport and Highways (MoRTH) has issued new rules for the BH series in Central Motor Vehicles Amendment Rules, 2022 vide a draft notification. These new rules have simplified the procedure to transfer vehicles with the BH series registration mark. It is specified that vehicles which currently possess normal registration can also be converted to BH series registration if the owners subsequently become eligible for it, by paying the necessary tax. It is also proposed to allow applicants to submit their application at either their home or place of employment. The working certificate required to be submitted by the employees of the private sector has been changed.
The Ministry of Road Transport & Highways (MoRTH) has postponed the implementation of the mandate for installing a minimum 6 airbags in passenger Cars (M-1 Category) to October 01,2023. This has been done keeping in mind the global supply chain constraints being faced by the auto industry and its impact on the macroeconomic scenario. The mandate was to come into effect from October 01,2022 for vehicles of category M1 to have six airbags to improve passenger safety.
September 2022
Education
The University Grants Commission (UGC) emphasizing on National Education Policy-2020 and on equity and inclusion being the cornerstone of all educational decisions, issued draft guidelines to ensure that all students with special needs can thrive in the education system. With the flexibility in the selection of subjects and courses, an Inclusive Pedagogy characterized by the use of multiple modes of delivery, addressing various learning styles and learning needs of Divyangjans and students with specific learning disabilities (SLDS), needs to be promoted at all levels of education. Considering the significant recommendations of NEP 2020 towards the teaching of Divyangjans and SLDS, UGC has prepared/framed guidelines entitled, "Credit Based on Pedagogical Aspects for Teaching Divyangjans and Specific Learning Disabilities (SLDS)".
Source: https://www.ugc.ac.in/pdfnews/1105261_Public-notice-SLDs.pdf
The University Grants Commission (UGC) has issued notification for Equivalence of degree obtained through Open and Distance Learning (ODL) and Online mode with degree obtained through conventional mode. In its latest notice, the UGC has shed light on ‘Equivalence of degree obtained through ODL and Online mode with degree obtained through conventional mode.’ Degrees at undergraduate and postgraduate level post-graduate diplomas awarded through Open and Distance training mode and/or online mode by Higher Educational Institutions, recognised by the Commission under the regulations, shall be treated as equivalent to the corresponding awards of the Degrees at undergraduate and postgraduate level and post-graduate diplomas offered through conventional mode. Recently, UGC also introduced amendments in order to attract more foreign students which allowed them to apply for higher education in India with any recent national ID as opposed to their passports. The commission has also introduced joint-degree, dual degree and twinning programmes as a mode of collaboration between higher education institutions in India and those abroad.
Source: https://www.ugc.ac.in/pdfnews/8526483_ODL-Online-degree-through-conventional-mode.pdf
The University Grants Commission (UGC) vide a notification titled transforming higher educational institutions (HEIs) into multidisciplinary institutions, on September 02, 2022, issued guidelines paving the way for diverse education. Higher education institutions will be recognised under three categories as per the recommendations of the National Education Policy (NEP). These categories are Teaching-intensive Universities, Research-intensive Universities and Degree-awarding Autonomous Universities.
As per the guidelines affiliated colleges will have to pass through different stages of autonomy to achieve the degree-awarding status. Alternatively, they can become a part of a cluster to become a large multi-disciplinary HEI. An HEI upon becoming a constituent college of the large university, may then collaborate with other constituent colleges of the university and may also open new departments to achieve the status of multidisciplinary HEI.
UGC has also proposed insititutes to collaborate with each other to curate programmes that enhance the nature of the degree and education. Respective institutions may determine their own course tuition fee charged for the courses.It has been made mandatory through the draft guidelines for institutions to approve the NEP-proposed dual degree programme. For cluster of Government colleges a board of Governors will be appointed headed by a Chairman appointed by the state government.
Corporate Law
The MCA has issued Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2022 whereby it has amended the Companies (Appointment and Qualification of Directors) Rules, 2014 and has substituted E-form Form No. DIR-3-KYC and web-form 3-KYC-WEB with a new format shared in the official notification.
In August, MCA notified the Companies (Incorporation) Third Amendment Rules, 2022 to amend the Companies (Incorporation) Rules, 2014 wherein a rule relating to physical verification of the registered office of the company was inserted. The rule provides the registrar to visit at the address of the registered office of the company and physically verify the said registered office in presence of two independent witnesses of the locality in which the said registered office is situated. The notification provided conducting such verification on the basis of documents submitted by the company. Further, where the registered office of the company is found to be not capable of receiving and acknowledging all communications and notices, the registrar is required send a notice to the company and all the directors of the company, of his/her intention to remove the name of the company from the register of companies and requesting them to send their representations along with copies of relevant documents, if any, within a period of thirty days from the date of the notice before taking further actions in accordance with the provisions of the Companies Act.
In furtherance to the same, the MCA has issued Companies (Removal of Names of Companies from the Register of Companies) Second Amendment Rules, 2022, to amend the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, in which substitutions have been made in the Form STK-1 to remove the name of the company in case is not carrying on any business operations as ascertained through physical verification.
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In its attempt to ensure that various documents and records are readily available for the authorities to check any time, the MCA has notified Companies (Accounts) Fourth Amendment Rules, 2022 in order to amend the Companies (Accounts) Rules, 2014.
The rules mandate maintaining of books of account and other relevant books and papers in electronic mode to remain accessible in India “at all times". The companies are required to back up the books of account and other documents kept in electronic mode, including at any place outside India have to be kept in servers physically located in India “on a daily basis". Additionally, businesses are required to report more details about the service provider who manages their electronic books of accounts and other records. According to the amendment, the name and address of the person in charge of the books of account and other books and papers in India must be reported when the service provider is based outside of India on an annual basis.
MCA has amended the rules for Corporate Social Responsibility (CSR) regulations in India. Expenditure on CSR activities was made mandatory in 2014, now MCA has made the following changes by Companies (Corporate Social Responsibility Policy) Amendment Rules, 2022 introduced on September 20, 2022:
CSR committee for unspent CSR amount
A CSR committee is to be established by all Companies for monitoring their CSR commitments and any funds in their “Unspent Corporate Social Responsibility Account”. Companies may keep unused funds set aside for CSR in this account to use them within three financial years. The earlier relaxation given to companies to not form a CSR committee if they no longer satisfy the required criteria has also been done away with by these Amendment rules.
Expenditure for Impact Assessment Changed
The Amendment Rules provide that the cost of social impact assessments, which can be considered as CSR spending, cannot be greater than 2% of all CSR expenditures for the applicable financial year or Rupees 50 lakh, whichever is higher. Greater impact assessment spending is permitted in the event of substantial CSR projects
Format for annual report on CSR activities Revised
All companies are required to provide the following information in the annual report as per the new rules:
- Explanation of its CSR policy in brief;
- Name, designation and number of meetings held and attended by the Director as well as information about the other members of the CSR committee
- Executive summary and web links for the impact assessments of CSR projects.
- Company’s website where the CSR Committee’s membership, CSR policy, and CSR projects approved by the board are listed; and
Many other disclosures are now required the annual report of the companies such as, unspent CSR amount for the preceding three financial years, information regarding the CSR amount allocated to ongoing projects and other than ongoing projects and particulars of excess amount for set-off, if applicable. The company must also specify if any capital assets were generated or bought under the company’s CSR spending during the financial year, and how many. The annual report should also provide reasons for the company’s failure to spend 2% of the average net profits of the three immediately preceding financial years, if any.
The Ministry of Corporate Affairs (MCA) on September 15, 2022 has issued Companies (Specification of definition details) Amendment Rules, 2022 to further amend Companies (Specification of Definition Details) Rules, 2014. This has come into force on September 15, 2022.
Earlier, definition of “small companies” under the Companies Act, 2013 was revised by increasing their thresholds for paid up capital from “not exceeding Rs 50 lakh” to “not exceeding Rs 2 crore” and turnover from “not exceeding Rs 2 crore” to “not exceeding Rs 20 crore”. This definition has, now, been further revised by increasing such thresholds for paid up Capital from “not exceeding Rs. 2 crore” to “not exceeding Rs. 4 crore” and turnover from “not exceeding Rs. 20 crore” to “not exceeding Rs. 40 crore”.
Legal Metrology Act
Department of Consumer Affairs, Government of India amended the Legal Metrology(General) Rules, 2011. The Legal Metrology Act, 2009 allows the companies to nominate any of its Directors as a person responsible for the business of the Company. Earlier in case of violations under the Legal Metrology Act, the prosecutions were initiated against the Directors of the companies even for violations by any establishment or branch or unit in any establishment or branch of the company. There was request from various industries to allow nominating the person who is actually having the authority and responsibility of the establishment or branch or unit in any establishment or branch and not the Director, so that the notices for the violation done by the establishments or branches or units should not be issued to the Directors who are not responsible for the violation of establishment or branch or unit in any establishment or branch. With this amendment, companies having different establishments or branches or different units in any establishment or branch can now nominate an officer who has the authority and responsibility for the operations and activities of the establishments or branches or different units. This will facilitate the companies to nominate a person who is actually responsible for the activities of an establishment or branch of the company in place of Director of the Company, who is not directly involved in day-to-day activity of that establishment or branch thereof.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1865188
FCRA
The Ministry of Home Affairs has extended the validity of FCRA registration certificates of certain categories of FCRA registered entities. “The following categories of FCRA registered entities have been included: • The validity of registration certificates of such entities whose validity was extended till 30.09.2022 in terms of the Public Notice dated 22.06.2022 and whose renewal application is pending will stand extended till 31.03.2023 or till the date of disposal of renewal application, whichever is earlier. • The validity of those FCRA entities whose 5 years’ validity period is expiring from 01.10.2022 to 31.03.2023 and who have applied/apply for renewal before the expiry of 5 years’ validity period will stand extended up to 31.03.2023 or till the date of disposal of renewal application, whichever is earlier. It is therefore advised to all FCRA registered associations to take note that in case of refusal of the application for renewal of the certificate of registration, the validity of the certificate shall be deemed to have expired on the date of the refusal of the application of renewal and the association shall not be eligible either to receive the foreign contribution or utilize the foreign contribution received.”
Source: https://fcraonline.nic.in/home/PDF_Doc/fc_notice_23092022.pdf
National Logistics Policy
The Government of India (GOI) has issued notification regarding The National Logistics Policy which is aimed at bringing efficiency in logistics services, and human resources through streamlining processes, regulatory framework, skill development, mainstreaming logistics in higher education and adoption of suitable technologies. The Policy will be focusing on enabling adequate development of warehouses with optimal spatial planning, promotion of standards, digitization and automation across the logistics value chain and better track and trace mechanisms. The institutional frameworks under PM GatiShakti at the Centre and State level, which will also monitor implementation of the Policy, is fully operational.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1861133
Telecommunication Laws
The Department of Telecommunications (DoT) has released the draft Indian Telecommunications 2022 bill. As per the bill, going forward, the spectrum can be assigned through auction or administrative process, depending on the requirements. The bill has provisions to waive fees, charges, and penalties of any company if required to protect the interest of consumers or ensure fair competition. The draft bill has also enlarged the definition of telecommunication services, bringing over-the-top (OTT) communication services such as Whatsapp, Signal, and Telegram, satellite-based communication services, internet, and broadband services, in-flight and maritime connectivity services, etc, under its ambit. The bill also states in case of insolvency, the spectrum assigned to the entity shall revert to government control. The government also has the right to waive in part or in full any fee or damages payable by a licensee. The government can also grant exceptions from the provisions of this Act or rules to a licensee. As per the draft bill, on the occurrence of any public emergency or in the interest of public safety, the Central or state governments or any officer specially authorized on this behalf can direct any message or class of messages, to or from any person or class of persons shall not be transmitted, or shall be intercepted or detained or disclosed to the officer mentioned in such order. In the event of war or national security issues, the government can take over the control and management of, or suspend the operation of, or entrust any authority of the Government to manage any or all of any telecommunication services. In case of breach of license conditions, the DoT can revoke such license, registration, authorization, or assignment and impose a penalty. The penalty regime has been changed, with varying amounts of penalties depending on the severity of the offense. Any suspension, curtailment, revocation, or variation may be reversed if the substantial violation is remedied to the satisfaction of the Central Government. An alternate dispute resolution may be established by the government.
The Telecom Regulatory Authority of India (TRAI) issued a notification regarding the extension of the timeline for implementation of the New Regulatory Framework, 2020. It has been decided that all the broadcasters shall report to the Authority, any change in name, nature, language, MRP per month of channels, and composition and MRP of bouquets of channels as per the New Regulatory Framework 2020, by November 30, 2022 and all DPOs shall report to the Authority, DRP of pay channels and bouquets of pay channels, and composition of bouquets of pay and FTA channels, as per the New Regulatory Framework 2020 by December 31, 2022. The distributors of television channels must ensure that services to the subscribers are provided as per the bouquets or channels opted by them with effect from February 28, 2023.
Source: https://www.trai.gov.in/sites/default/files/Implemenation_01092022_0.pdf
Labour Laws
The Pension Fund Regulatory and Development Authority (PFRDA) provided instances wherein after leaving their employment due to resignation or retirement certain subscribers under the Corporate and Government sectors have not exercised Inter Sector Shifting (ISS). In NPS database those subscribers are still associated with their previous employers. In the interest of those subscribers, it has been decided to permit such subscribers under the Government/ Corporate sector to continue with their existing investment pattern and Pension Fund (PF) choice as an option, on their shifting to the all citizen sector. For such subscribers, their prospective and legacy contributions would continue to be invested as per the existing investment pattern/PF prevailing during their employment as they were previously reluctant to shift to the all citizen sector, due to fear of changes in existing PF/Investment.
Source: https://www.pfrda.org.in/writereaddata/links/circular%20govt%20and%20corporate%20employees%20to%20continue%20with%20their%20existing%20scheme%20choiceecb58d0c-9106-4fb7-8ed1-c00e7e4309e7.pdf
Notification on Introduction of Systematic Lump Sum Withdrawal (SLW) issued by The Pension Fund Regulatory and development Authority (PFRDA) for the benefit of NPS Subscribers and to facilitate them with smart withdrawal facility. A subscriber is required to buy an annuity for at least 40% of the total corpus while the remaining amount can be withdrawn as a lump sum in a single tranche or on an annual basis Under National Pension System (NPS) rules. Annuity with 100% of the amount accumulated in his/her NPS account through years of investment can also be bought by the subscribers. The Pension Fund Regulatory and Development Authority (PFRDA) is now inviting comments/suggestions on a new proposal that will allow monthly, quarterly, half-yearly or annual withdrawal of the lump sum amount till the age of 75 years. According to current rules, the subscribers can defer availing annuity post 60 years/superannuation and withdraw the lump sum on any combination till 75 years. In the new proposal that lump sum amount can be withdrawn on annual basis or as a single tranche. For annual withdrawal the Subscriber has to initiate the withdrawal request each time and the request has to be authorized as the case may be.
Now in order to ease this process of lump sum withdrawal, a proposal has been made by PFRDA to pay lump sum systematically on a periodical basis viz monthly, quarterly, half-yearly or annually for a period till 75 years as per the choice of the Subscriber, and to automate the process based on one-time online/offline request.
Source: https://www.pfrda.org.in/writereaddata/links/slw28c91160-3c93-4787-a101-1cf7acc14709.pdf
The Reserve Bank of India (RBI)
The RBI in consultation with the Government of India has released the Outward Investments Rules in line with the amendment in the Foreign Exchange Management Act 2015. Presently, overseas investment by a person resident in India is governed by the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 and the Foreign Exchange Management (Acquisition and Transfer of Immovable Property Outside India) Regulations, 2015.
With a view to simplify the procedure and the evolvingneeds of businesses in India, the revised regulatory framework for overseas investment has been released and has been aligned with the current business and economic dynamics. Clarity on Overseas Direct Investment and Overseas Portfolio Investment has been brought in and various overseas investment related transactions that were earlier under approval route are now under automatic route, significantly enhancing "Ease of Doing Business".
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The Reserve Bank of India issued a notification on Late Submission Fee for reporting delays under Foreign Exchange Management Act, 1999 (FEMA) The Late Submission Fee (LSF) was introduced for reporting delays in Foreign Investment (FI), External Commercial Borrowings (ECBs), and Overseas Investment related transactions with effect from November 07, 2017, January 16, 2019, and August 22, 2022, respectively. These provisions seek to bring uniformity in the imposition of LSF across functions. A uniform fee is to be paid for various delays in reporting. The above provisions shall come into effect immediately for the delayed filings made on or after the date of this circular. All other provisions of reporting under FEMA remain unchanged.
Source: https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=12393
Indirect Taxes
The Directorate General of Foreign Trade (DGFT) has amended the Handbook of Procedures (HBP) 2015-20. This has come into force on September 29, 2022. As per the amendment, the existing Foreign Trade Policy 2015 -2020 which was valid till September 30, 2022 has now been extended up to March 31, 2022.
The Directorate General of Foreign Trade (DGFT) has issued amendment in para 5.15 of Handbook of procedures 2015-20, related to Export Promotion Capital Goods Scheme. As per the amendment, the time limit to file returns for the year 2022-23 has been extended from September 30, 2022 to December 31, 2022.
The Directorate General of Foreign Trade (DGFT) has released notification regarding insertion of ‘Denomination of Export Contracts’ under the Foreign Trade Policy in sync with RBI A.P.(DIR Series). The notification allows invoicing, payment and settlement of exports and imports in INR. Further, it is provided that that trade transactions in INR may take place through the Special Rupee Vostro Accounts opened by AD banks in India in accordance with the prescribed procedure.
Consumer Laws
The National Payments Corporation of India (NPCI) has released guidelines on Capturing customer location on UPI Apps. The guidelines are intended for UPI members and set out certain directions to be followed by UPI members namely • UPI Apps are allowed to capture location/geographical details only with the consent of the customer/individual. • Provision to subsequently revoke the consent must be provided to the customer without denying the UPI services. • The app shall not disable/deny the UPI services if consent from the customer is not given. • These guidelines will be applicable where the customer (Payer) is a person/individual who is initiating transactions and will be applicable to domestic UPI transactions only. The guidelines are to be made applicable from December 1, 2022.
The Food Safety and Standards Authority of India (FSSAI) has issued a draft notification for responses from experts and the public to the printing of Indian Nutrition Rating (INR) on food packets as part of a labelling exercise with healthy food items getting a higher rating. The move is aimed at letting consumers know the items with high salt, fat, and sugar and to allow them to make informed choices while purchasing them. Items are proposed to be assigned scores based on energy and content of saturated fat, sugar, sodium, fruit, vegetables, nuts, legumes, millets, dietary fibre, and protein per 100 gm servings of solid and liquid foods. As per the notification, it is essential for pre-packaged food items to carry health ratings, i.e., Indian Nutritional Ratings (INR). These ratings would be similar to the energy efficiency ratings on electronic goods. A time period of two months has been given to the stakeholders to submit their suggestions and feedback to the draft notification.
Source: https://www.fssai.gov.in/upload/uploadfiles/files/Draft_Notification_HFSS_20_09_2022.pdf
RBI / FEMA
The RBI has re-issued Master Direction on Acquisition or Transfer of Immovable Property under Foreign Exchange Management Act, 1999. The directions list out categories of persons that can hold Immovable property in India, the procedure in this regard, disposing off, transfer and acquisition of such property, etc. As per section 6(5) of FEMA, a person resident outside India can hold, own, transfer or invest in any immovable property situated in India if such property was acquired, held or owned by him/ her when he/ she was resident in India or inherited from a person resident in India. The Directions also permit long term VISA holders to acquire immovable property in India.
The Securities and Exchange Board of India (SEBI)
The Securities and Exchange Board of India (SEBI issued a circular regarding the participation of SEBI registered Foreign Portfolio Investors (FPIs) in Exchange Traded Commodity Derivatives in India. In order to promote institutional participation in Exchange Traded Commodity Derivatives (ETCDs), SEBI has permitted Category III Alternative Investment Funds, Mutual Funds, and Portfolio Management Services to participate in ETCDs.
SEBI has decided to allow foreign investors to participate in Indian ETCDs through the FPI route, and it has also laid down the conditions in order to be a participant. The following conditions have been stated:
- To begin with, FPIs will be allowed to participate in cash settled non-agricultural commodity derivative contracts and indices comprising such non-agricultural commodities.
- FPIs desirous of participating in ETCDs shall be subject to risk management measures applicable, from time to time.
- Position Limits: FPIs other than individuals, family offices and corporates may participate in eligible commodity derivatives products as ‘Clients’ and shall be subject to all rules, regulations and instructions, position limit norms as may be applicable to clients, issued by SEBI and stock exchanges, from time to time. FPIs belonging to categories viz. individuals, family offices and corporates will be allowed position limit of 20 per cent of the client level position limit in a particular commodity derivative contract.
- The participation of FPIs including individuals, family offices and corporates shall be subject to compliance with the provisions of SEBI (Foreign Portfolio Investors) Regulations, 2019, SEBI (Custodian) Regulations, 1996 and other applicable SEBI circulars on ETCDs.
- Stock Exchanges/Clearing Corporations may specify additional safeguards/conditions, as deemed fit, to manage risk and ensure orderly trading in ETCDs. The provisions of this circular will come into immediate effect.