There has been a focus on startups and ensuring a stable environment for new ideas. In the last few years govt is conscious of the innovation, disruptions happening with bright minds across various industry and is also aware of the social impact it is creating. Innovation leads to growth, generation of job, improvement in business and is a sustainable model for years to come.
There are few areas which has indirectly lead to growth in E-com like development in digital payment, development of secure and platform agnostic payment gateway(UPI), demonetization, simplification of taxation, GST, infrastructural growth etc.
Overall we can very clearly see that India is going digital in a big way. It is the fastest growing economy riding on E and M-commerce. Ease of adoptability of mobile is helping India write a completely new story.Adoptabilty of M-commerce, smartphones will take India to a new level, unparalled by any developed countries. India will make a paradigm shift in the way business is conducted and will eventuall lead the way for the rest of the world.
Role of Govt.
Govt is planning to bring more multinational companies in the tax bracket by levying taxes on digital transactions like sales, download of software, songs, movies, books, news etc.
In order to bring more multinational companies under the tax net, the government seems to be broadening of tax net. A committee set up by CBDT had recommended equalisation levy of 6-8 percent on 13 broad services offered by ecommerce companies.Although, the government has no plans to hike the current equalisation rate of 6 percent, it could be looking to bring in more services under the tax net, the report added.Besides this, the committee had also recommended to include other services such as advertising on radio and television, designing, hosting or maintenance of websites, digital space for websites, email, blogs, facility for online sale of goods or services or collecting online payments.
Wish list from The Vanca
- Removing of friction in digital payment and giving incentive to encourage more of digital payments
- Quick implementation of GST for ease of business
- Support/help boost consumption and sales of goods
- Clarity and simplification of tax and services will help ecosystem to grow and will eventually lead to optimization of supply chain and improvement in E-commerce.
The article has been pen down by Rajeev Sinha, CEO and Founder of The Vanca.