Cash receipt format for small businesses in India

Quick frame: A cash receipt is the simplest legal record that money changed hands. India has three rules you cannot ignore: ₹1 revenue stamp above ₹5,000, no single cash transaction above ₹2 lakh (Sec 269ST), and GST on advances received against a future supply.

Generate clean numbered receipts with the Cash / Money Receipt Generator.

Three rules in 30 seconds

1. Revenue stamp above ₹5,000 (Indian Stamp Act)

Schedule I, Article 53 of the Indian Stamp Act: Receipt for any money or other property the value of which exceeds ₹5,000 — duty is ₹1. The ₹1 revenue stamp is affixed on the original copy and signed across.

UPI / NEFT / cheque receipts do NOT need a revenue stamp — only cash receipts.

2. ₹2 lakh single-transaction cap (Sec 269ST, IT Act)

You cannot receive ₹2 lakh or more in cash:

• From a single person in a day, OR
• For a single transaction, OR
• For transactions relating to one event/occasion.

Penalty under Section 271DA: equal to the amount received. So receiving ₹3 lakh in cash means a ₹3 lakh fine. UPI / bank transfer is unrestricted.

3. GST on advances (services)

For services, Section 13 of the CGST Act: GST liability arises at the time of receipt of advance. You must issue a receipt voucher (under Rule 50) and pay GST in the next month's GSTR-3B.

For goods (post-Nov 2017 amendment), GST on advance is deferred to the time of supply — no GST at advance receipt.

What to print on a cash receipt

• Receipt number (continuous serial, e.g., RCT-2026-0001)
• Date
• Issuer name + address (you, the receiver)
• Payer name + address
• Amount in figures and words
• Mode of payment (Cash / UPI / Cheque / Bank transfer)
• Reference (UPI ID, cheque no., transaction ID)
• Purpose ("towards rent for May 2026")
• Authorised signatory
• ₹1 revenue stamp area (if cash > ₹5,000)

Common mistakes

• Skipping the receipt for "small" cash — the ₹5,000 stamp threshold is per receipt, not per cumulative amount. Multiple sub-₹5,000 cash receipts to circumvent are frowned upon at audit.
• Not numbering — gaps in serial trigger questions during income tax / GST audit.
• Missing purpose — "received against business" is not specific. State exactly what.
• Cash above ₹2 lakh — the giver also has a Section 269ST risk if it's a "single transaction" pattern.

Special cases

• Rent receipts — landlords with annual rent > ₹1 lakh must give a stamped receipt for HRA exemption claims. Tenant deducts TDS u/s 194-IB if rent > ₹50,000/month.
• Donation receipts — 80G/80GGA donations need the receipt + 10BE certificate from the donee.
• Loan repayment — Section 269T: cash repayment of loan ≥ ₹20,000 is barred. Penalty equal to the amount repaid.

Related tools

• HRA Calculator
• TDS on Rent Sec 194-IB
• GST Invoice Generator

Q. Is a typed receipt valid in India? A. Yes. Handwritten and typed are equally valid. The ₹1 revenue stamp + signature is what makes a cash receipt above ₹5,000 admissible directly in evidence.

Q. Can I issue a single receipt for multiple cash transactions in a day? A. Yes for documentation, but Section 269ST treats them as a single day's receipt — total cannot cross ₹2 lakh from the same person.