Iam a sweet vendor and i have pos counter ... i use to issue the bills in the name of party name cash.. bcz it is not feasible to have each customer detail.. so upto value of 50000 i write cash on sale bills as party name and and isuue the bills and accept the cash..without knowing the customer and writing thier detail on bills.. Is it right..? Also i also take order booking and on sale day i also issues the bill in the name of cash as customer Name.. if amount is below 50000 of bill .. would it create problem for me .. in gst or Incometax?
Hi,
These things cant be looked independtly. It depends upon your total cash transaction during the year and many other factors. It is advisable to write the name and mobile no. of the person on the bill if bills are huge. You can consider any bill more than 10k as high value.
But according to gst act one can write off bill by writing customer name as cash upto 50000 .. And also if not writing customer name and mobile no on bills than what will be the penalty from the department?
Yes thats how its done in normal general stores and everywhere.
As per GST rule 46 you need to write detail of clients only if the value is above ₹50000.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hello,
You must have the name of the customer on every invoice.
For invoices to unregistered person where the value of the taxable supply is fifty thousand rupees or more, the invoice must have name and address of the recipient, along with the name of the State and its code.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Yes, as per GST, there is no limit on cash sales. The requirement is such that if the value exceeds Rs. 50,000, you need to mention the Name and Address of the customer.
Yes, not writing names on the invoices can be liable for a penalty, as it is a violation of the rules under GST.
There is no specific penalty. However income tax department can ask you about details of the customers and in worst case if you cant provide the data ,one could allege that you have bifrucated the sales more than 2lacs in 4-5 bills.
pls note cash sales more than 2 lacs to a single person in a single day is prohibited and penalty is equivalent of amount received in cash.
Dear Sir,
Yes, your understanding is correct.
There is no requirement to write details of customer upto value of INR 5000.
There is no penalty for the same in GST.
However, you need to maintain the records for income tax purpose.
- In case of cash sales to unregistered persons, it is sufficient if you are generating invoices. To make the invoices more compliant, it is advisable to write all other details i.e. HSN code of the product, description of the product, taxable value, GST rate, amount of GST i.e. complete format of tax invoice.
- In income tax, you can not accept Rs.2 lacs from a single customer in a single day.
