Cash Refund upto 200,000

Dear Experts, Kindly advise on matters relating to refunding a customer in cash to the extent of INR 200,000 or less on the same day of sales. (i.e)

1) The customer purchased an item for INR 150,000 and paid the amount in cash.

2) The same day, due to some reason, the customer returned the item to the seller and is seeking a refund in cash.

Please advise on the possibility of providing a cash refund, considering 40A(3), 271E, and 269ST, case laws if any, alike.

Many thanks in advance.

Replies (2)
Cash refund but not advisable in cash.

Yes, cash returned back allowed when the amount is below 2 lakhs.

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