Kaccha Bill Generator

Who Uses a Kaccha Bill?

When is a kaccha bill legal, and when must you stop?

A kaccha bill records a cash sale with no GSTIN and no tax charged. That is fine while you are an unregistered seller below the GST registration threshold. Once your turnover crosses the threshold, the law expects a pakka bill (GST tax invoice) instead, because a taxable sale needs a Section 31 invoice carrying the Rule 46 fields.

The registration thresholds that end kaccha-bill use

Under Section 22 of the CGST Act, registration is mandatory once aggregate turnover crosses these lines. The ₹40 lakh goods figure came in via CBIC Notification 10/2019-Central Tax and is state-opt-in, so confirm your own state's adopted limit.

For goods, the ₹40 lakh threshold (Notification 10/2019-Central Tax) does not extend to ten states that remain at ₹20 lakh: Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand. For services and mixed supply, the four states that keep the ₹10 lakh threshold are Manipur, Mizoram, Nagaland, and Tripura. Inter-state sellers and e-commerce sellers must register from the first rupee under Section 24 (goods; inter-state suppliers of services keep the ₹20 lakh threshold under Notification 10/2017-Integrated Tax). Thresholds are state- and year-variable; check the CBIC portal before you rely on a figure.

A worked kirana example

Take a kirana store in a normal-category state selling only goods. In its first year it turns over ₹14 lakh in cash, all recorded on kaccha bills. That is legal: it is below the ₹40 lakh goods threshold and unregistered, so no GST invoice is required. As footfall grows, turnover reaches ₹42 lakh. It has now crossed ₹40 lakh, so GST registration becomes mandatory: from that point the store must obtain a GSTIN and issue a pakka bill on taxable sales, not a kaccha slip. A registered seller who keeps handing out kaccha bills on taxable sales understates turnover and, at a GST audit, faces tax, interest, and a penalty.

The Section 269ST ₹2 lakh cash-receipt limit

A kaccha bill records a cash receipt, and cash has a separate hard ceiling that applies whether or not you are GST-registered. Section 269ST of the Income-tax Act bars any person from receiving ₹2 lakh or more in cash from one person in a day, against a single transaction, or for a single event. Breach it and Section 271DA levies a penalty equal to 100% of the amount, on the receiver of the cash, not the payer. So even a fully unregistered kirana seller cannot take ₹2 lakh or more in cash for one order or one customer's day of purchases without crossing this line. When a buyer refuses to pay by bank channel and a payment could approach ₹2 lakh, that is the risk to weigh. See the Section 269ST cash transaction limit explained and, if a buyer is refusing a GST invoice, what the buyer's rights are.

What a kaccha bill looks like, field by field