Question 1

What is a kaccha bill and when is it valid?

Accepted Answer

A kaccha bill (informal cash receipt) is a non-GST invoice traditionally used by small businesses and unregistered traders for cash transactions. It records the parties, amount, and date but does not claim GST and cannot be used for Input Tax Credit. For GST-registered sellers, a tax invoice (pakka bill) is the legal requirement; for unregistered sellers, a bill of supply under Rule 49 CGST Rules is the proper formal document.

Question 2

Is the kaccha bill legally valid?

Accepted Answer

Yes for record-keeping and transactional acknowledgment between parties. It is NOT valid for GST Input Tax Credit, and NOT a substitute for a tax invoice if you are GST-registered. Buyers requiring "GST bills" need a tax invoice or bill of supply, not a kaccha bill. See our seller refuses GST invoice — buyer rights guide.

Question 3

Why is the kaccha bill free?

Accepted Answer

Kaccha bill is a courtesy generator for very small businesses and individual sellers below GST registration thresholds who handle predominantly cash. We do not think a Rs. 9 charge belongs on this document. Other product types (rent receipt, salary slip, payment receipt, GST tax invoice) carry pricing because their compliance use cases warrant the engineering cost.

Question 4

Should I voluntarily register for GST instead of issuing kaccha bills?

Accepted Answer

Voluntary registration makes sense if your B2B clients require Input Tax Credit, your input costs include significant GST you could otherwise recover, or you are approaching the Rs. 20 lakh registration threshold organically. Below the threshold, staying unregistered and issuing kaccha bills or bills of supply is usually fine for B2C and unregistered-buyer transactions.

Question 5

What is the difference between a kaccha bill and a bill of supply?

Accepted Answer

A bill of supply is the formal Rule 49 CGST document required of registered composition-scheme sellers and registered sellers of exempt goods or services. A kaccha bill is the informal transactional acknowledgment used by unregistered sellers below the registration threshold. Bill of supply has formal legal status under CGST; kaccha bill is a transactional courtesy. The pakka bill form auto-detects whether to render as TAX INVOICE or BILL OF SUPPLY depending on whether you have entered a GSTIN.

Feature	Kaccha Bill	Pakka Bill (GST Invoice)
Who uses it	Small shops, informal vendors, individuals	GST-registered businesses
GST applicable	No	Yes — CGST, SGST/IGST
GSTIN required	No	Mandatory
Legal for tax audit	For small informal transactions	Yes — full compliance
Cost to generate	Free	₹9 at HRAReceipt.in
Items list	Yes	Yes

Kaccha Bill Generator

Bill Details

Who Uses a Kaccha Bill?

Kaccha Bill vs. Pakka Bill

Kaccha bill — common questions

References