Tax leakage in retail sector and innovative billing machine.

The best way to curb the black money is to restructuring the system to prevent the black money circulation. If you go to the restaurant and pay money to the owner directly, it does not come into tax bracket.

Most of the retail industry even goes to the extra length to have two billing mechanism , one for cash and one for the digital transaction. Later they try to delete major portion of the cash bills which is generated and they will not show into the company accounts.  This is a tax evasion which is illegal since the collected GST is not paid to the government. Moreover  it generates exorbitant profit for the retail sector. This kind of transaction is more prevalent in provision , clothing, fruits, vegetable , electronics store etc.

There is a need for government standardized  billing machines with robust technology where deletion of cash bills is not possible. Technology like block chain can be used where modification of data is not possible. The bill has to contain code or identification in order to identify customers that the bill is generated by standardized billing machines. Also the rule has to be passed that only government standardized billing machinery should be used by the retail sector.


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