cash bill

Supplier cannot receive 2 lakhs or more by cash mode u/s 269ST of IT act,  per day per person or per event/bill.

If the remaining amount is received by banking channel, you can issue any amount bill, no restriction.

But if total receipt is by cash, restrict it to below 2 lakhs.

Agreed with Rambhia Sir,

Penalty will be equal to amount received in cash in case where cash accepted over Rs. 200000. that means receiver need to pay penalty and not payer.