Section 269ST
Regulation & taxAn income-tax provision restricting the receipt of cash at or above a prescribed limit from one person in a day, for a single transaction, or for one event.
In plain terms
It penalises the receiver, not the payer, in an amount equal to the sum received. That single design choice is why the jeweller, hospital and builder simply decline the cash — you meet the rule as a refusal, not a notice.