Cash limit for urd purchase

GST Act and Income Tax Act are two seperate acts with there respective provisions.

As per Income Tax Act any expense for which payment is made in cash exceeding 10,000 is not eligible for deduction while calculating Income from Business. Here expense includes Purchases also.

As per CGST Act, there is no resctriction on mode of payment for making Business Purchases.However if you are making purchases exceeding 5000 in a day from an unregistered dealer, you need to pay GST on reverse charge basis.

@ RAJA PM,

Sir iam registered under GST(Arecanut)

my daily cash transation is Rs. 50000 to 75000 on purchase

any problem if pay cash on urd purchase

Originally posted by : vivek
	Iam urd purchaser please tell me cash limit for urd purchase Per day... ?? Per Person.... ??

No such restirction under GST. But restriciton under Income tax, we should not purchase to pay in cash for more than 10000

Apt Co Advisory

9910520753

my doubts all clear, once again thank you for all...