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
Replies (1)
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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