India’s most profitable retail chain, the Army canteen will be completely cashless by March 1 of 2017. The Government had asked the Army canteen services to make sure that all the stores under its purview would be completely cashless in 2017.
The Army canteens, which operate from Ladakh to Andaman and Nicobar islands are exempted from sales taxes and value added taxes (VAT) charged by the State Governments on the 5,300 products that it sells in the 3,900 stores that come under its purview. The profits of this chain exceeded the profits of major established retail chains like Future group, Dmart and Reliance.
Demonetization had resulted in a drop in sales in many army canteens. The Canteens have now introduced a smart card system to complete any transaction. This was done as many canteens do not have card swiping facilities.