Tax evasion is a major problem for the economy, and it affects everyone. But with the help of blockchain technology, we can create a digital ledger that tracks compliance and ensures a transparent tax system. The DGGI recently sent notices for tax evasion of Rs 2,250 crore, which shows the urgency to address this issue.
The purpose of this project is to create a decentralized application (Dapp) that utilizes the Polygon chain to generate a unique QR code for each product. Consumers can scan this code to trace the product's journey from source to store, which brings transparency to supply chain management and shows who paid the tax. A fair and transparent tax system benefits everyone by encouraging compliance, reducing losses, and funding essential services.
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- Generates a unique QR code for each product using the Polygon chain
- Consumers can scan the QR code to trace the product's journey from source to store
- Ensures transparency in supply chain management
- Shows who paid the tax, encouraging compliance and reducing losses
- Solidity: programming language used to write smart contracts
- Truffle: development framework for Ethereum
- Metamask: browser extension to interact with Ethereum-based applications
- React: JavaScript library used for building user interfaces
- Web3.js: JavaScript library used to interact with Ethereum network
- Polygon: a Layer 2 scaling solution for Ethereum
To run this project, you need to have the following installed on your system:
- Node.js
- Truffle
- Ganache
- Metamask browser extension
Once you have these installed, you can follow these steps to run the project:
- Clone the repository to your local machine
- Install the required dependencies using
npm install - Start Ganache and create a new workspace
- Import the accounts from Ganache into Metamask
- Compile and deploy the smart contract to the Ganache network using
truffle migrate --reset - Start the React application using
npm start
This Dapp provides a solution to the problem of tax evasion by utilizing blockchain technology to create a transparent tax system. By generating a unique QR code for each product and allowing consumers to trace the product's journey from source to store, we can ensure compliance and reduce losses. The use of Polygon chain provides faster and cheaper transactions, making it a viable solution for real-world applications.