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Cash memo format

A cash memo is the bill a shop hands over when the customer pays on the spot, so it serves as both the bill and the proof of payment. If you are registered under GST it must also meet the tax invoice rules; if you are not, it is a plain bill with no GST, like the one below.

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Cash memo format · example

FromGanesh Kirana & General Stores
ToCash customer
CurrencyINR
DescriptionQtyPriceAmount
Basmati rice, 5 kg bag2₹520.00₹1,040.00
Toor dal, per kg3₹165.00₹495.00
Sunflower oil, 1 litre pouch4₹155.00₹620.00
Tea, 500 g pack1₹280.00₹280.00
Total₹2,435.00

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How to use the cash memo format

  1. Add your shop name, address and phone, and your GSTIN if registered.
  2. Write "Cash customer" or the buyer's name.
  3. List items with quantity, rate and amount; add GST only if you are registered.
  4. Note that it was paid in cash or by UPI, then save it.

What a cash memo contains

  • Shop or business name, address and phone number
  • GSTIN, if registered
  • The words "Cash memo", or "Tax invoice" if you are registered
  • Memo number and date
  • Customer name, or "Cash"
  • Item description, quantity, rate and amount
  • HSN codes and GST, only if registered
  • Total in figures and in words
  • Seller's signature, often under "Received with thanks"

Cash memo, tax invoice or bill of supply?

SellerDocument for a cash saleGST shown
Not registered under GSTCash memo or billNo
Registered, regular schemeTax invoice, which may be titled "cash memo-cum-tax invoice"Yes
Registered, composition schemeBill of supplyNo

Worked example

A kirana store below the GST threshold sells 2 bags of basmati rice at ₹520, 3 kg of toor dal at ₹165, 4 litres of sunflower oil at ₹155 and a 500 g pack of tea at ₹280. The cash memo totals ₹2,435, written as "Rupees two thousand four hundred thirty-five only", with no GST because the store is not registered.

Questions

Is a cash memo valid under GST?

The name does not matter; the contents do. A registered seller's cash memo must carry everything Rule 46 requires of a tax invoice, including the GSTIN, HSN and tax. An unregistered seller's cash memo is a simple bill and must not show GST.

What is the difference between a cash memo and a credit memo?

A cash memo is for a sale paid immediately. A credit memo, or credit bill, is for a sale where the buyer pays later, so it carries a due date and stays open in your books until paid.

Is there a limit on cash sales?

Yes. Section 269ST of the Income Tax Act bars you from accepting ₹2 lakh or more in cash from one person in a day, for one transaction or for one event. Business buyers also lose the tax deduction for most cash payments above ₹10,000 to one person in a day, so larger sales are better taken by UPI, card or bank transfer.

Should a cash memo be numbered?

Yes, in one series for the financial year. Numbered memos let you match daily sales to the cash in the drawer, and they are the first thing a tax officer asks to see.

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