Is there a legal limit on receiving cash?

Yes. Section 269ST of the Income Tax Act prohibits receiving ₹2 lakh or more in cash from one person in a day, for one transaction, or for transactions relating to one event. The penalty under Section 271DA equals the amount received. Split payments across days do not help if they relate to one transaction. Check with your CA for exceptions.

Is a revenue stamp needed on a cash receipt?

Under the Indian Stamp Act a receipt for cash above ₹5,000 should carry a ₹1 revenue stamp, and states may have their own rules. Many businesses affix the stamp on the printed copy and sign across it. Bank and UPI payments do not need a stamp. This is a stamp duty matter, not a GST one.

What is the difference between a cash receipt and a payment receipt?

A payment receipt records any mode (UPI, bank transfer, cheque, card or cash) with a transaction reference and is normally linked to an invoice. A cash receipt is a lighter document for cash only, with a purpose line, where the invoice link is optional. Both update the customer's ledger in VyaparKit.

Do I have to link a cash receipt to an invoice?

No. The Against invoice field is optional on a cash receipt. Leave it blank for advances, rent or fees where no invoice exists; the amount still reduces the customer's ledger balance. If you do select an invoice, that invoice is marked paid or partially paid.

Can I issue a cash receipt for an advance?

Yes. Enter the amount, write the order or job in Towards and leave the invoice blank. The advance shows as a credit in the customer's ledger; when you later invoice, the net balance accounts for it. If you are GST-registered and the advance is for services, GST is payable on the advance in that month.

Does the customer need to sign the receipt?

No. The receipt is your acknowledgement that you received cash, so it carries your signature. The customer keeps the original as proof. If you want the payer's acknowledgement for a refund or return of an advance, use a payment voucher instead, which has an Approved by field and records money going out.

Cash Receipt

Generate cash receipts instantly with amount in words. Free for Indian businesses.

Free account · 5 documents a month freeMade for India · ₹, GST, UPI, WhatsApp

In short

A cash receipt is a simple acknowledgement of cash received, with the payer's name, amount in figures and words, date, purpose and signature, optionally linked to an invoice. Shops, service providers and landlords issue it for counter sales, advances and fees. VyaparKit's cash receipt generator creates a numbered receipt, updates the customer's ledger balance, and produces a PDF to print or send on WhatsApp.

Free account required

Create a Cash Receipt in under a minute

Sign in once with Google or email. Your business name, GSTIN, logo, bank details and saved customers fill in automatically. Download a PDF or share a link on WhatsApp. 5 documents a month are free, forever.

Start free See what's free

✓Beautiful PDF with your logo and details
✓GST calculated automatically where applicable
✓Saved customers, vendors and items, so no retyping
✓Share link with WhatsApp button and UPI QR
✓Converts to related documents in one click

About the cash receipt tool

Cash still runs a large share of Indian small business: counter sales at a hardware shop, advance for a tailoring order, monthly rent, tuition fees, booking amount for a banquet hall. Each of these needs a receipt because cash leaves no trail of its own. A cash receipt states who paid, how much, on what date and towards what, and it is the paper the customer will produce if there is ever a question about the payment.

Pre-printed receipt books run out, get duplicated across staff, and are never entered into accounts. VyaparKit's cash receipt has a Received from field, a Cash received amount, a Towards field for the purpose (for example, advance for order #42) and an optional Against invoice picker. The amount is written in words automatically and every receipt takes the next number in the CR/26-27 series.

If you link the receipt to an invoice, the invoice is marked paid or partially paid; even without a link, the receipt reduces the customer's ledger balance so advances are tracked. Print it or share on WhatsApp. Free accounts include 5 receipts a month across receipts, vouchers and notes, and no card is needed to sign up.

How to issue a cash receipt

1
Enter who paid
In Received from, pick a saved customer or type the payer's name and phone.
2
Enter the amount
Fill Cash received; the amount in words is generated for the PDF. Optionally choose the invoice in Against invoice (optional).
3
State the purpose
Fill Towards with what the cash is for, such as 'Advance for order #42' or 'Rent for September 2026'.
4
Create and hand over
Click Create receipt and Download PDF to print, or send the WhatsApp link so the customer has a digital copy.

What a cash receipt should contain

Receipt number (CR/26-27/0001) and date.
Name of the person or business paying, with phone number.
Amount received in figures and in words.
Purpose of the payment: invoice number, order, rent period or fees.
The word 'cash' as the mode, so it is distinguished from bank receipts.
Balance due, if the payment is an advance or an instalment.
Revenue stamp of ₹1 on cash receipts above ₹5,000 under the Indian Stamp Act, where your state requires it.
Signature of the person receiving the cash, and your business name and address.

Who uses the cash receipt

Hardware and paint shop

Issue receipts for cash advances on bulk orders and settle them against the invoice when goods are delivered.

Tailor and boutique

Take a booking advance for a wedding order and hand the customer a numbered receipt with the balance due.

Landlord with commercial tenants

Give tenants a monthly cash receipt for rent with the period written in Towards.

Tuition and hobby classes

Collect monthly fees in cash and give each parent a receipt sent on WhatsApp.

Cash Receipt: frequently asked questions

Is there a legal limit on receiving cash?: Yes. Section 269ST of the Income Tax Act prohibits receiving ₹2 lakh or more in cash from one person in a day, for one transaction, or for transactions relating to one event. The penalty under Section 271DA equals the amount received. Split payments across days do not help if they relate to one transaction. Check with your CA for exceptions.
Is a revenue stamp needed on a cash receipt?: Under the Indian Stamp Act a receipt for cash above ₹5,000 should carry a ₹1 revenue stamp, and states may have their own rules. Many businesses affix the stamp on the printed copy and sign across it. Bank and UPI payments do not need a stamp. This is a stamp duty matter, not a GST one.
What is the difference between a cash receipt and a payment receipt?: A payment receipt records any mode (UPI, bank transfer, cheque, card or cash) with a transaction reference and is normally linked to an invoice. A cash receipt is a lighter document for cash only, with a purpose line, where the invoice link is optional. Both update the customer's ledger in VyaparKit.
Do I have to link a cash receipt to an invoice?: No. The Against invoice field is optional on a cash receipt. Leave it blank for advances, rent or fees where no invoice exists; the amount still reduces the customer's ledger balance. If you do select an invoice, that invoice is marked paid or partially paid.
Can I issue a cash receipt for an advance?: Yes. Enter the amount, write the order or job in Towards and leave the invoice blank. The advance shows as a credit in the customer's ledger; when you later invoice, the net balance accounts for it. If you are GST-registered and the advance is for services, GST is payable on the advance in that month.
Does the customer need to sign the receipt?: No. The receipt is your acknowledgement that you received cash, so it carries your signature. The customer keeps the original as proof. If you want the payer's acknowledgement for a refund or return of an advance, use a payment voucher instead, which has an Approved by field and records money going out.

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