BillmanWhat is a payment receipt?
A payment receipt is your written proof that you received money: who paid, how much, when, how and for what. It protects both sides if there is a dispute about whether a bill was paid.
What a receipt should show
- Your business name and address.
- A receipt number and date.
- Who paid you.
- The amount in figures and in words.
- What it is for: an invoice number, an advance or the balance due.
- How it was paid: cash, UPI, cheque or bank transfer, with the reference.
- Your signature, and a revenue stamp for cash over ₹5,000.
Cash limits to know
Under the Income-tax law, a business should not accept ₹2 lakh or more in cash from one person in one day, for one transaction or one event. Take UPI, cheque or bank transfer for big amounts.
Advance for services under GST
If you take an advance for services, GST is due when you receive it, and the receipt should be a GST receipt voucher showing the tax. For goods, GST on advances is generally not due.