1. The DPIIT will govern most online marketplaces<\/b><\/h3>\n
The Department for Promotion of Industry and Internal Trade (DPIIT) has had multiple meetings with corporate and government stakeholders to increase regulation in the eCommerce space.\u00a0<\/span><\/p>\n They plan to: <\/span><\/p>\n More intensive governance of marketplaces will help small online businesses with independent online stores be more relaxed against unfair competition.\u00a0\u00a0<\/span><\/p>\n The primary objective of the government is to ensure eCommerce is a safe space. Mandatory registrations with a government authority will help protect the interests of consumers and local small online sellers.\u00a0 \u00a0<\/span><\/p>\n Once your business is registered as an Indian business, it is mandatory to get your business GST registered<\/a> so that your eCommerce entity is seen as a tax-paying entity.\u00a0<\/span><\/p>\n You could be entitled to an exemption if you earn less than \u20b940 lakh annually and if you are an independent online seller.\u00a0<\/span><\/p>\n However, if you intend to sell on a marketplace, GST registration is compulsory for you. You will be liable to pay GST irrespective of what you earn.\u00a0<\/span><\/p>\n The new norm of mandatory registrations for eCommerce businesses is mainly due to fears of:\u00a0<\/span><\/p>\n An Indian registration will also help small local online sellers as they would become eligible for benefits provided by the Indian government.\u00a0<\/span><\/p>\n The DPIIT is concerned about unfair practices by marketplaces that harm small sellers and consumers. They want to discourage practices like deep discounting, biased use of algorithms, unfair competition and sale of prohibited items.\u00a0<\/span><\/p>\n Accordingly, the new laws for consumer protection will have clear stipulations so that there is\u00a0<\/span><\/p>\n <\/p>\n <\/p>\n If you already sell\/distribute on a marketplace, you may need to stay aware of these laws. Here are a few ways you can prepare your DTC eCommerce business for the new laws.\u00a0<\/span><\/p>\n It\u2019s good to have your DTC brand\/company GST registered so that you can utilise the benefits that the government provides for Indian sellers.\u00a0\u00a0<\/span><\/p>\n On Instamojo, we want our customers to have a smoother, quicker and hassle-free GST registration process. This is why we partnered with LegalWiz.in so that Instamojo users can avail GST registration services at a discounted rate. GST registration offers legal recognition as a supplier with a one-time registration. It is an integral part of the business.\u00a0<\/span><\/p>\n Use the app provided by LegalWiz.in on our portal to ensure your business is safe from compliance issues.\u00a0\u00a0<\/span><\/p>\n Visit our app store here!<\/a><\/strong><\/p>\n It is important to realise that your online payments are not just restricted to a customer, but vendors too. A payment gateway for DTC brands should comply with a bank-grade security level, like <\/span>Payment Card Industry Data Security Standards <\/span><\/a>(PCI-DSS) and provide a secure encrypted environment for payments. This ensures transparency and prevents hidden charges.\u00a0<\/span><\/p>\n Also, for heightened safety and fraud prevention<\/a><\/strong>, opt for fraud detection and prevention mechanisms. Build these features into the gateway to avoid chargebacks and other issues.<\/span><\/p>\n Instamojo is PCI-DSS compliant, and your transactions are 100% safe and secure. There are no hidden charges, and there is complete transparency on every transaction.\u00a0<\/span>Choose safe online payments with Instamojo.<\/a><\/strong><\/p>\n\n
![\"e-commerce-policy\"](\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2022\/01\/e-commerce-policy--1024x768.png\")
2. All eCommerce companies will need to have an Indian registration<\/b><\/h3>\n
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3. New laws on consumer protection will be launched<\/b><\/h3>\n
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![\"Draft](\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2022\/01\/Draft-eCommerce-Policy.jpg\")
How do the eCommerce draft policies apply to your DTC brand<\/b><\/h2>\n
1. Register your eCommerce company\u00a0<\/strong><\/h3>\n
2. Use a trustworthy payment gateway so everything is transparent<\/b><\/h3>\n
3. Have a fool-proof refund, returns, and customer service policy hosted on your website<\/b><\/h3>\n