Compulsory Digital Payment option at Point of Sales / Services above threshold, Pan-India
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The Digital age necessitates an Option to pay through digital modes (Credit / Debit cards, electronic Wallets etc) at various points of sales and services (POS/S) With ATM restrictions on number of free Cash withdrawals for an average banking customer (non- Privileged), it is imperative that such POS/S be equipped with appropriate Card Swipe Machines or have facilities for e-Wallet payment. This is also a first-step towards transparency in transactions reporting which most business organisations overtly or covertly abhor.
The Govt. at the Centre should start with Amendment to the various relevant statutes to effectively discourage all transactions beyond a value of say Rs.200/- through Cash mode. The transaction cost that banks charge at flat rates per cent on card swipes can be either made ZERO or kept a bare minimum, that too above a value of say Rs. 10,000/- and the loss to banks can be easily offset by such banks through earnings on Call Money from the significant volumes of funds flowing in on a pan-India scale through such transactions . .
As a FIRST STEP, the Central Govt. led by Hon'ble PM Shri Narendra Modi is humbly requested to bring about necessary amendments to the Companies Act / LLP Act, Rules etc. and related Statutes to compulsorily require all Companies registered under the respective Acts to ensure that the POS/S of such companies, be they Service Centres, Preferred Channel partners, Sales / Retail outlets etc. by whatever name called, to collect their fees and charges and sales value ONLY through Digital mode and NOT in CASH if it exceeds a base amount of Rs. 200/- (say).
The Statutory / Tax Auditor may be asked and required to Report on the number of such POS/S, value of such Sales and % of such transactions through Digital mode.
This will also prevent evasion of GST which is rampant through under reporting of Sales and Services value whilst a lot of these entities collect the GST from the Customers through the Bills using copied / fake GSTIN.
The MoHUA, GoI can also devise mechanism to reward ULBs across all States directly if they enforce Digital Payment in establishments within their jurisdiction and link that to renewal / issue of Trade Licences.
CA Shomdip Ghosh
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