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Cash memo › Cash memo or tax invoice
Cash memo vs tax invoice under GST
Shop owners often ask whether a cash memo is enough. The answer depends on one thing: are you registered under GST, and if so, under which scheme?
Who gives what
| Your business | What GST asks for | Where to make it |
|---|---|---|
| Not registered under GST | Nothing under GST. A cash memo is your normal bill. Do not show or collect GST. | This maker, with GST off |
| Registered, composition scheme | A bill of supply with the words "composition taxable person, not eligible to collect tax on supplies" | Invoice maker (bill of supply) |
| Registered, regular scheme | A tax invoice for every taxable sale, with the details the GST rules list | Invoice maker (tax invoice) |
The difference at a glance
| Cash memo | Tax invoice | |
|---|---|---|
| Made by | Any shop, mostly unregistered ones | GST-registered businesses |
| GSTIN, HSN and tax split | Not needed | Needed (HSN digits depend on your turnover) |
| Buyer can claim input tax credit | No | Yes, if the buyer is registered and the other conditions are met |
| Goes into GST returns | No | Yes |
| Payment | Usually paid on the spot | Paid now or later |
Small sales by a registered shop
GST rules make one exception for counter sales. When a single sale is less than ₹200, the buyer is not registered and does not ask for an invoice, you may skip the invoice for that sale and issue one consolidated tax invoice at the end of the day for all such sales. Many shops give the customer a cash memo for each small sale and make the day's consolidated invoice in the invoice maker.
When a registered shop sells to an unregistered buyer, the buyer's name and address are not needed on the invoice for smaller amounts. For a sale of ₹50,000 or more to an unregistered buyer, the name, delivery address and state must be written.
A worked example
A sweet shop registered under the regular scheme sells 1 kg of mixed sweets at ₹500 + GST 5%. The customer is local, so CGST 2.5% = ₹12.50 and SGST 2.5% = ₹12.50, total ₹525. A memo without the tax split would not be a proper tax invoice, so the shop gives a tax invoice. A tea stall next door, not registered, sells tea and snacks for ₹180 and gives a plain cash memo of ₹180 with no GST.
Showing GST on a cash memo
If you are registered and still want the counter-slip style, tick "Show GST on this document". The memo then shows your GSTIN, the GST rate on each line and the CGST + SGST or IGST in the total. For sales your buyer will claim credit on, use the tax invoice from the invoice maker, which prints every field the rules list.