PANAJI: Following up with its intent towards cashless economy, the government has ordered all manufacturers, retailers, wholesalers, dealers and members of trade to go cashless in 10 days.
Through a trade circular notified in the official gazette, the government has said that all dealers, hoteliers and proprietors registered under the Goa VAT Act 2005 or other commercial taxes, have to ensure cashless modes of payments at their respective place of business within the next 10 days.
The circular signed by Dipak M Bandekar, commissioner of commercial taxes, becomes effective 10 days from its date of issue, which is November 30 2016.
It says, “The government has decided to take the next step of enabling cashless transactions for various receipts and payments being done in the course of day-to-day business and market related transactions including domestic and commercial purposes.”
Members of trade have to make use of other available modes of payments or cash transfers like point-of-sale machines, swipe cards, QR code recognition and payment devices, etc.
The circular makes “an appeal” to encourage cashless transactions.
After being inundated by worried calls from dealers and retailers, a senior official from the commercial taxes department clarified that the notification will not attract penal action if not followed.
He said the notification is to hasten the move towards cashless economy and is meant to serve as a “persuasion measure”. Post-deadline, officials of the commercial taxes department will visit shops and establishments to verify compliance and for those who eschew ‘cashless’ efforts would be made to sort out issues.
The senior official added that purpose of the notification is to give freedom to customers to choose between different modes of payments.
“Going cashless would also ensure more revenues to the department through tax compliance,” he said.
There are over 30,000 dealers, hoteliers and commercial establishments registered with the commercial taxes department. While organised operators have card payment facility those with small turnover are cash-based, according to the department. On November 26, 2016, the government said Goa will be the first state in India aiming for cashless economy. Towards this banks have started educating small vendors including fruit and vegetable sellers on the benefits of going cashless.
The notified circular is the latest measure to carry forward the goal of cashless economy. It says that the government will also introduce in future a system of transferring money over mobile phone which need not be a smart phone. It is applicable to all entities registered under the Goa VAT Act, the CST, the Goa Entry Tax, Entertainment and Luxury tax.