Cash sales and purchases limit under i.t. and gst act

A trader what is limit of cash purchases and cash sales in one year under gst and I.t
act
how many cash received one year by other party.
Replies (2)
Quick Summary
While the GST Act doesn't impose limits on cash sales or purchases, the Income Tax Act 1961 does have specific regulations. For cash purchases, exceeding £10,000 per day via cash or bearer cheque means the expense won't be deductible under PGBP. Furthermore, the Income Tax Act prohibits receiving £2 lakh or more in cash, whether in a single transaction, aggregate per day, or for related events, with penalties for violations.

Under GST Law, there is no limit regarding CASH PURCHASE and CASH SALES.

But under the Income Tax Act 1961, certain CASH Transaction limits are specified.

CASH PURCHASE :

As per the Provision of Section 40A(3) of the Income Tax Act 1961, Purchase exceeding Rs. 10,000 in Cash/Bearer Cheque per day, will not be allowed as Deduction under the head PGBP.
Therefore the limit is Rs. 10,000 per day incase of CASH PURCHASE.

CASH RECEIPT/SALES :

Provision of Section 269ST of the Income Tax Act 1961, Prohibits any person to receive an amount of "Rs.2 lakhs" and above in cash :

(i). In aggregate from a person in a DAY, or
(ii). In a single transaction, or
(iii). In respect of transactions relating to one event or occasion from a person.

If any Person violates the Provision of Section 269ST of the Income Tax Act 1961, then Penalty under Section 271DA would be applicable.

no as such limit in GST Act 

but in IT Act 1961 there is limit of Rs. 10,000 /- per day per person 

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