Sir, I am a retailer (all sales to consumers). Can I receive cash in respect of sales made in excess of ₹ 10000 from such consumers? Will there be any penalty?
No penalty .You can receive cash upto Rs 200000 from your customer.
but
Every cash payment in excess of Rs. 10,000 will be disallowed under section 40A(3).
If you pay to someone in excess of Rs. 10,000 then that transaction you can not claim as expense in your Income tax filing.
However if you are not claiming the particular transaction as expense then section 40A(3) is not applicable.
Further for more clarification please read Pulkit Sir's article https://www.knowyourgst.com/article/cash-limits-penalties-income-tax-116/
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