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Cash payments limitations as per GST

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Prakash Rao

172 Points Posted on 21 March 2020

I wish to know what is the limitations to make payments in cash per day as per gst act and what section

Replies (2)

Quick Summary

While the GST Act itself doesn't impose specific limits on daily cash payments, the Income Tax Act does. You are restricted from making cash payments exceeding £10,000 in a single transaction and cannot receive cash exceeding £200,000. Additionally, accepting or repaying loans in cash above £20,000 is prohibited. Failing to adhere to these Income Tax regulations can lead to penalties, even if GST has no direct cash transaction limits.

RAJA P M

"Do the Right Thing...!!!"

77833 Points Posted on 21 March 2020

No more restrictions in GST act...

Harshit Acharya

296 Points Posted on 21 March 2020

There are no limitations in GST for making cash transactions.
But that doesn't mean you can make cash transactions to any extent.
As you have got GST registration ,you must have registered A/C to s.24( compulsory registration) or s.22.( reg according to turnover).
You must have been paying income tax too , by filing income tax returns.
Income tax act prescribes limit for cash transactions in-
1.S.40A(3)- cash payment cannot exceed 10k.

2. Cash receipt cannot exceed 2lakhs in a transaction.
LOANS ( accepting /repayment)
1. Cant accept loans in 20k or more ( cash)
2. Cant repay loans in 20k or more (cash).
So,even if there is no provision in GST, you will be caught under Income tax act.