Punjab Fines of Rs 1 Million for Refusal of Digital Payment

The Punjab government is going tough on businesses that deny digital payments through its new Finance Bill. Any shop refusing debit or credit cards, mobile wallets, or QR-code payments now risks a penalty of up to a staggering Rs 1 million. The initial violation warrants a minimum of Rs 400,000 in penalties; subsequent offenses cost at least Rs 300,000. A third offense might close your shop for good, locking the premises for up to a month.

This is a daring step accompanied by stricter action against the Electronic Invoice Monitoring System (EIMS), marking a move toward a completely digitized payment and bookkeeping regime. The Bill also revolutionizes the Punjab Sales Tax on Services (PSTS) regime, replacing a “positive list” of services being taxed with a “negative list” of exemptions, i.e., all services are taxable unless specifically exempted.

A total of 26 categories, public healthcare, education, transport, charitable services, and cold-room operators in government-approved housing schemes, are the services that are exempt. The Finance Bill seeks to strengthen transparency, expand the tax net, and modernize trade in Punjab, send a crystal-clear message: digital payment is no longer voluntary.