# What Is a Kaccha Bill? Why the Rough Slip Has No GST Standing

**Category:** GST | **Published:** 2026-06-25 | **Last reviewed:** 2026-06-25 | **Author:** Mrs. Swapna Patel

A kaccha bill is the everyday name for an informal sale slip: a cash memo, rough estimate, or handwritten note that records an amount without a GSTIN or GST tax breakup. It is not a document GST law recognises, so it gives the buyer no input tax credit and leaves a registered seller exposed if the sale is ever checked.

> **Myth:** A kaccha bill still counts as a bill for tax, accounts, and expense proof.
>
> **Fact:** A kaccha bill is an informal slip with no GSTIN and no tax breakup, so under [Section 16 of the CGST Act](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-act) it carries no input tax credit and is weak expense proof.

## What is a kaccha bill?

> **Short answer:** A kaccha bill is an informal sale slip: a cash memo, rough estimate, or handwritten note recording an amount with no GSTIN and no GST tax breakup. "Kaccha" is the Hindi-English trade word for the bill the law does not treat as final.

"Kaccha" means rough, raw, unofficial, the opposite of "pakka". A kaccha bill is the slip a shop hands over for a quick sale: a number on paper, often without the buyer details, the tax, or the seller GST number a tax invoice must carry.

## Is a kaccha bill legal?

> **Short answer:** A kaccha bill is not illegal as a personal note, but it cannot replace a GST tax invoice on a taxable sale, which [Section 31 of the CGST Act](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-act) makes mandatory for a registered seller.

- As an internal note or an estimate before a sale, a kaccha bill is fine.
- As the bill for a taxable sale by a registered seller, it is not. The law requires a tax invoice (a pakka bill) instead.
- Handing out kaccha bills on taxable sales understates turnover and reads as suppression in a GST check, attracting tax, interest, and penalty.

## Why can a kaccha bill cost the buyer?

> **Short answer:** Because [Section 16 of the CGST Act](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-act) allows input tax credit only against a valid tax invoice, and a kaccha bill is not one.

- The GST embedded in the price cannot be claimed back as input tax credit, so it becomes a real cost to the buyer.
- A vague slip is weak expense proof at income tax, where an assessing officer expects a proper tax invoice.
- There is no audit trail tying the payment to a registered seller, so the spend is hard to defend later.

**[See which document to issue by registration status](https://hrareceipt.in/atlas/tax-invoice-vs-bill-of-supply-vs-kaccha-decision-tree)**

## What should you issue instead of a kaccha bill?

> **Short answer:** A registered seller issues a [pakka bill](/answers/what-is-a-pakka-bill) (GST tax invoice); an unregistered or composition seller issues a [bill of supply](/answers/non-gst-invoice-format-bill-of-supply), not a kaccha bill.

- Registered on a taxable sale: a pakka bill (tax invoice) under Section 31 and Rule 46.
- Below the GST threshold, unregistered, or under composition: a bill of supply under Rule 49, which is informal-looking but legally correct.
- For the full side-by-side, see [pakka bill vs kaccha bill](/answers/pakka-bill-vs-kaccha-bill-gst-tax-invoice).

**[Generate a proper bill in 60 seconds](https://hrareceipt.in/pakka-bill)**

## Primary sources

- [Section 31, Central Goods and Services Tax Act 2017 — CBIC](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-act) — Obligation on a registered seller to issue a tax invoice on a taxable supply.
- [Section 16, Central Goods and Services Tax Act 2017 — CBIC](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-act) — Input tax credit allowed only against a valid tax invoice.
- [Rule 49 / Section 31(3)(c), CGST — CBIC](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-rules-as-amended) — Bill of supply: the correct informal-looking document for unregistered, composition, or exempt sellers.

## Related

- [What is a pakka bill — the GST invoice that counts as valid](https://hrareceipt.in/answers/what-is-a-pakka-bill)
- [Pakka bill vs kaccha bill — which is a valid GST invoice](https://hrareceipt.in/answers/pakka-bill-vs-kaccha-bill-gst-tax-invoice)
- [Why move from a kaccha bill to a pakka bill — the upside of formalising](https://hrareceipt.in/answers/why-move-from-kaccha-bill-to-pakka-bill)
- [How to upgrade from a kaccha bill to a pakka bill (GST invoice)](https://hrareceipt.in/answers/how-to-upgrade-kaccha-bill-to-pakka-bill)

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*Source: [What Is a Kaccha Bill? Why the Rough Slip Has No GST Standing](https://hrareceipt.in/answers/what-is-a-kaccha-bill) — HRAReceipt.in*
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