Payment receipt format

A payment receipt acknowledges money received from a party. It names the payer, amount, date, mode (cash, UPI, cheque, bank transfer) and what the payment is for. It protects both sides: the customer has proof of payment, and you have a record that matches your bank or cash book.

A receipt for payment against an invoice already issued carries no GST of its own; the tax was on the invoice. An advance received before the supply is different: GST law asks for a receipt voucher.

For businesses that collect through staff or agents, numbered receipts are the main control against leakage: every rupee collected has a receipt, and the receipts add up to what reaches the cash box or bank. Part payments are common, so the receipt should say which invoices the money settles.

When to use it

• A customer pays against one or more invoices, in full or in part.
• A customer pays an advance before you supply.
• Cash collections by staff or agents, so each one is accounted for.
• Any payment where the customer asks for written proof.

For payments against invoices, no GST rule prescribes a format. For advances, section 31(3)(d) of the CGST Act requires a receipt voucher, with the particulars in Rule 50: supplier details, a consecutive number, date, buyer details, description, amount of the advance, tax rate and amount, place of supply and whether reverse charge applies. GST is payable on advances for services; for goods, normal taxpayers need not pay GST on advances (Notification 66/2017-Central Tax). If the supply is cancelled, a refund voucher is issued (Rule 51).

Cash rules under the Income-tax Act also matter: avoid accepting ₹2 lakh or more in cash from one person in a day or for one transaction.