Every counter sale needs a paper trail. The cash memo is the simplest one there is: proof that goods changed hands and cash was received, in one small document. This guide covers the standard cash memo format, how it differs from an invoice and a receipt, what GST expects of it, and a free way to make printable cash memos without designing anything in Word.
The standard cash memo format
A complete cash memo carries:
| Field | What to show |
|---|---|
| Seller details | Business name, address, phone, and GSTIN if registered. |
| Memo number and date | A serial number unique within your business, and the sale date. |
| Item lines | Description, HSN/SAC (if GST applies), quantity, unit, rate and amount. |
| Discount | Shown before tax, if any. |
| GST | The rate and the CGST + SGST split (same state) or IGST (inter-state), when tax is charged. |
| Grand total | In figures and, ideally, in words to prevent tampering. |
| Payment mode | Cash, UPI or card, plus a reference number for digital payments. |
| Signature or stamp | Of the seller or the authorised person. |
Cash memo vs invoice vs receipt
The three are often confused, but the distinction is simple. An invoice asks for payment: it is issued for credit sales and payment follows later. A cash memo records a spot sale: payment happened at the counter and nothing is outstanding. A receipt acknowledges a payment against an earlier invoice. If you sell on credit, read our GST invoice format guide, since a tax invoice has stricter, legally prescribed fields.
| Document | Issued when | Money outstanding |
|---|---|---|
| Invoice | A credit sale is made | Yes, until the customer pays |
| Cash memo | A sale is paid for at the counter | None |
| Receipt | Payment arrives against an earlier invoice | Reduced by the amount received |
GST on cash sales
A GST-registered seller charging tax on a cash sale must show the rate and the correct split: CGST + SGST when buyer and seller are in the same state, IGST across states. For small B2C sales under ₹200, GST law permits a consolidated invoice at the end of the day instead of one per sale. Unregistered sellers issue plain cash memos with no tax fields at all. To check the maths on any amount, use the free GST calculator.
Make cash memos online, free
Apna Invoice handles both sides of a cash deal. For a counter sale, bill the walk-in customer with itemised lines, HSN/SAC, automatic CGST/SGST or IGST split, discount, payment mode and amount in words, then print it on A4 or an 80 mm thermal printer, or share it on WhatsApp. For a cash purchase where the seller gives no bill, record a cash memo in your own books: it goes straight into your expenses, with the GST input tracked for GSTR-3B. Create a free account and make your first bill in about a minute.
Frequently asked questions
What is a cash memo?
A cash memo is the document a seller issues for a cash (spot-payment) sale. It records what was sold, the quantity, rate and total, and acts as proof of purchase for the buyer and a record of sale for the seller. It is common for over-the-counter retail and small purchases.
What is the difference between a cash memo and an invoice?
An invoice is a demand for payment: it is issued first and payment may follow later (credit sale). A cash memo is issued when payment happens on the spot, so nothing is outstanding. Legally, a GST-registered seller's tax invoice has prescribed fields under CGST Rule 46; a cash memo for small B2C sales is simpler.
What should a cash memo format contain?
Seller name and address (plus GSTIN if registered), a serial number and date, item-wise description with quantity, rate and amount, any discount, the GST rate and split if tax is charged, the grand total (ideally in words), and the payment mode. A signature or stamp adds authenticity.
Is a cash memo valid for GST?
For B2C sales below ₹200 a registered seller need not issue a full tax invoice for each sale (a consolidated invoice at day-end is allowed). Above that, or when the buyer asks, a tax invoice with GSTIN and HSN/SAC is the safe course. If the seller charges GST on a cash memo, the CGST/SGST or IGST split must be shown.
Can I make a cash memo online for free?
Yes. For a counter sale, bill the walk-in customer in Apna Invoice: itemised lines with HSN/SAC, automatic GST split, discount, payment mode and amount in words, printed on A4 or an 80 mm thermal printer. For a cash purchase where the seller gives no bill, record a cash memo; it goes straight into your expenses with the GST input tracked.