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Cash payments limitations as per GST

Prakash Rao (226 Points)

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

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2 Replies

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 21 March 2020

No more restrictions in GST act...

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Harshit Acharya (404 Points)
Replied 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.