Priority Area
Core Framework
Our 6 Policy Pillars
IDSA’s policy agenda is structured around six foundational priorities that define our engagement with government, regulators, and civil society.
Legislative Roadmap
Where We Stand — Then & Now
A timeline of key regulatory milestones IDSA has engaged with — and the policy actions ahead.
2019 — Achieved
Consumer Protection Act Enacted
The landmark 2019 Act replaced the 1986 law, introducing provisions specific to e-commerce, misleading advertisements, and product liability. IDSA contributed substantially to stakeholder consultations, ensuring direct selling was treated as a distinct and legitimate channel.
✓ Completed
2021 — Achieved
Direct Selling Rules Notified by MCA
After years of IDSA advocacy, the Ministry of Consumer Affairs notified the Direct Selling Rules 2021 — providing the first comprehensive, nationally applicable legal framework for the industry, explicitly banning pyramid and money circulation schemes.
✓ Completed
2023–2024 — Active
State-Level Rule Harmonisation
IDSA is actively engaging with 18+ state governments to adopt consistent implementation guidelines aligned with the 2021 central rules — reducing enforcement disparities that create compliance burdens for national direct selling companies.
⟳ In Progress
2024–2025 — Active
GST Council Submissions on TDS/TCS Framework
IDSA is leading industry representation before the GST Council to address the cascading tax impact on distributor incentives — seeking clarity on classification of direct seller commissions as B2B transactions to eliminate double taxation.
⟳ In Progress
2025–2026 — Planned
Skill India Integration for Direct Sellers
IDSA will table a formal proposal with the Ministry of Skill Development to recognise direct selling as a certified vocation — enabling access to PMKVY funding, formal accreditation, and social welfare benefits for India's 8 million+ direct sellers.
◷ Upcoming
2026 — Planned
Digital Direct Selling Policy Framework
As India's e-commerce regulatory landscape matures, IDSA plans to introduce a dedicated white paper proposing specific provisions for direct sellers operating on digital platforms — covering data privacy, algorithmic transparency, and cross-border commerce.
◷ Upcoming
Implementation Tracker
Policy Advocacy Progress
A snapshot of how far IDSA's key policy demands have advanced across government stakeholders.
Direct Selling Rules Implementation
85%
Notified nationally; 15 of 18 targeted states have adopted implementation guidelines.
GST Rationalisation Advocacy
55%
Formal representations submitted; Council deliberations ongoing in 2024 sessions.
Consumer Grievance Redressal Mechanism
90%
IDSA's internal grievance framework operational; all member companies mandatorily compliant.
Skill India Integration
30%
White paper drafted; stakeholder consultations with MSDE scheduled for Q1 2025.
Pyramid Scheme Prohibition Enforcement
75%
Legal framework enacted; enforcement capacity at state level being strengthened with IDSA support.
Make in India Supply Chain Linkages
60%
20+ IDSA member companies have formalised domestic sourcing commitments under IDSA's MiI charter.
Policy Demands
What IDSA is Asking For
Concrete, actionable asks that IDSA has placed before central and state government stakeholders in 2024.
01
Standardise the Definition of "Direct Seller" Nationally
Different ministries and state governments currently apply varying definitions, creating regulatory ambiguity. IDSA demands a single statutory definition adopted across all applicable laws and rules.
02
Exempt Distributor Incentives from Service Tax Treatment
Incentive payouts to direct sellers are currently subject to GST as if they were service fees, resulting in double taxation. IDSA demands clarification that these are trade discounts, not fees for service.
03
Equal Treatment in E-Commerce Policy
Proposed regulations on e-commerce platforms must not inadvertently disadvantage direct sellers who use digital tools to reach consumers. IDSA demands a level playing field with other retail formats in all e-commerce policy instruments.
"A well-regulated direct selling sector is not just good for business — it is a vehicle for inclusive economic growth, women's empowerment, and grassroots entrepreneurship in every corner of India."
— IDSA Policy Position, 2024 Annual Report
Engagement Map
Who We Work With
IDSA maintains structured engagement with all key stakeholders in India's policy ecosystem.
Ministry of Consumer Affairs
Lead ministry for Consumer Protection Act and Direct Selling Rules — IDSA's primary regulatory interlocutor.
GST Council & CBIC
Engagement on taxation structure, TDS/TCS on distributor commissions, and indirect tax classifications.
DPIIT & MeitY
Coordination on e-commerce policy, digital intermediary rules, and Make in India investment facilitation.
Ministry of Skill Development
Integration of direct selling as a recognised vocation under Skill India Mission and PMKVY certification.
Shape India's Direct Selling Policy
IDSA welcomes member companies, civil society organisations, and policy researchers to collaborate with our Policy Division. Together we build a regulatory environment that works for everyone.