A Reddit post revealing how a small tea stall is evading taxes through multiple QR codes has ignited a major discussion online. The stall, reportedly earning ₹72 lakh annually, cleverly registers 4-5 QR codes under different family members’ names, distributing its revenue to minimize tax liability. This tactic highlights a glaring loophole in India’s tax system, potentially costing the government crores in lost revenue.

Generating ₹6 lakh per month, the stall sees 40% of transactions in cash, making income tracking difficult. The remaining ₹43.2 lakh is split across five QR codes, keeping each family member’s share at approximately ₹14 lakh annually—comfortably within lower tax brackets. Had the income been taxed under a single entity, the liability would be nearly ₹20 lakh. Instead, by fragmenting earnings, the total tax paid drops to ₹8.55 lakh, leading to an ₹11 lakh shortfall in tax collection.

The post has triggered outrage, with many criticizing the stark contrast between strict monitoring of salaried individuals and the unchecked evasion by small businesses. Users pointed out that similar tactics are rampant among jewelers, shop owners, and hoteliers, with some sharing instances of businesses settling massive tax fraud cases with minimal bribes.

The loophole raises serious concerns—while digital payments are meant to enhance transparency, businesses are exploiting the system to reduce their tax burden. Calls for stricter regulations and AI-driven oversight on business transactions are growing louder.