Hello, I want to know what is the cash transactions limits for bullion merchants. I mean if any merchant buy goods worth Rs. 30000-40000 from 6-7 unregistered person daily and total transaction amount comes around Rs. 2-3 lakhs is it permissible under GST and does he have to pay reverse tax on it and if the same he sold under electronic mode of payment to a registered dealer then how to claim the tax which he paid under reverse tax.
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Cash transaction limit for bullion merchants
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GST will not be applicable on purchses made from unregistered person. Hence you will not have to GST neither under RCM nor under FCM.
However, ther is a limit for cash transactions in income tax act, according to which a person can't receive an amount exceeding Rs. 2,00,000 in aggregate from a single person during the year. Hence in the given case you can purchase from any person in cash if the amount doesn't exceeds Rs. 2,00,000 in a year in aggregate of purchases made from that person.
However, ther is a limit for cash transactions in income tax act, according to which a person can't receive an amount exceeding Rs. 2,00,000 in aggregate from a single person during the year. Hence in the given case you can purchase from any person in cash if the amount doesn't exceeds Rs. 2,00,000 in a year in aggregate of purchases made from that person.
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