The Indian tax authorities announced a major restructuring of the Goods and Services Tax (GST) effective 22^nd September 2025. The existing tax slabs of 12 and 28 percent shall be discontinued, as shall the compensation cess charged on top of GST. Many household items, ranging from food over medication to air conditioners, TVs and small cars, shall now be taxed in lower slabs of 18, 5 or even 0 percent. On certain unhealthy and luxury goods, such as tobacco products, fizzy drinks, large cars and yachts (!), 40 percent shall be levied. Alcohol shall continue to remain subject to VAT and thus outside GST law.

Ihr Ansprechpartner in Indien: Dr. Jörg Schendel

Suman Khaitan & Co.

W-13, West Wing, Greater Kailash Part-II
Delhi 110048, Indien

CELL:     +91 97 11 08 04 03
TEL:       +91 11 49 50 15 00
FAX:       +91 11 49 50 15 99

www.sumankhaitanco.in
germandesk@sumankhaitanco.in
schendel@adwa-law.com

What It Means for Singapore and ASEAN Businesses:

On 12 September 2025, the European Union’s Data Act (Regulation (EU) 2023/2854) applies. While adopted in Brussels, its reach extends far beyond the EU – including to businesses in Singapore and the wider ASEAN region that handle EU-generated data or export digital products and services to the EU.

What the Data Act Does

The regulation sets a new standard for fair access, use, and portability of data in the digital economy. Its obligations apply not only to EU companies, but also to non-EU entities that:

• manufacture or sell connected products in the EU,
• provide cloud or edge services to EU customers, or
• process EU-generated data.

Key obligations include:

• User data access: Users must be able to access and use the data generated by their connected products and related services – covering both personal and non-personal data.
• Data sharing: Users can share that data with third parties on fair, reasonable, and non-discriminatory terms. This reduces exclusive control by manufacturers and opens opportunities for new after-sales, repair, and analytics services.
• Cloud switching: Cloud and edge providers must allow customers to move their data and applications between providers without contractual or technical lock-ins. Data must be provided in structured, commonly used formats – reflecting the law’s “access by design” principle.
• Safeguards: Access and sharing rights are balanced by strong protections for personal data, trade secrets, and IP rights.
• Product design: From September 2026, connected products and services must be designed to give users straightforward, no-cost access to their data, where technically feasible. This will necessitate major changes in how products are developed and supported by IT infrastructure.

Sanctions mirror those of the GDPR with fines of up to €20 million or 4% of global turnover.

Impact in Singapore and ASEAN

For businesses in Singapore and the wider ASEAN region, the Data Act is more than a compliance obligation – it is a new standard that will shape global data practices:

• Cloud and digital service providers in Singapore serving EU clients must review contracts, terms of service, and interoperability features to enable switching.
• Manufacturers of connected products (e.g. smart devices, industrial IoT) exported to the EU must prepare to grant users access to the data their products generate.
• Data processors will need governance structures to manage data-sharing requests while protecting confidentiality and IP.

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Ihr Ansprechpartner in Singapur: Dr. Andreas Respondek

Respondek & Fan Pte Ltd

1 North Bridge Road
#16-03 High Street Centre
Singapore 179094

CELL:      +65 9751 0757
TEL:        +65 6324 0060
FAX:       +65 6324 0223

www.rflegal.com
respondek@rflegal.com