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Gst rounding off in tax invoice

26 July 2017

Can any body confirm, whether rounding off GST taxes i.e. CGST/SGST/IGST is allow in Tax Invoice or not? Some consultants says No, some says Yes. What is correct answer?

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10 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 26 July 2017

The amount of tax, interest, penalty, fine or any other sum payable, and the amount of refund or any other sum due, under the provisions of this Act shall be rounded off to the nearest rupee.

≥ 50 paise: Must be increased to one rupee.

< 50 paise: Part to be ignored.

The rounding off must be done for every part of the tax contained in the invoice.

1 Like

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 26 July 2017

Originally posted by : :\|)eep @ k Gupt/\
	The amount of tax, interest, penalty, fine or any other sum payable, and the amount of refund or any other sum due, under the provisions of this Act shall be rounded off to the nearest rupee. ≥ 50 paise: Must be increased to one rupee. < 50 paise: Part to be ignored. The rounding off must be done for every part of the tax contained in the invoice.

Where it has been mentioned- Act or rule????

Ramesh Babu M (95 Points)
Replied 26 July 2017

refer sec 170 under cgst act 2017

1 Like

Mahesh Sarda (173 Points)
Replied 27 July 2017

if any one charge less amount for example if tax amt 981.2 and if they charge 980 what happens . is it harmful to purchaser

Mahesh Sarda (173 Points)
Replied 27 July 2017

if any one charge less amount for example if tax amt 981.2 and if they charge 980 what happens . is it harmful to purchaser

Mahesh Shaha (303 Points)
Replied 31 July 2017

Thanks Sir

Regards

Mahesh Shaha

SURANA (PROPRIETOR) (515 Points)
Replied 30 August 2017

Would like to know if the Gross Amount should be rounded off or not?

Is GST 1 accepting decimals figure for Gross Amount?

Since it will create mismatch during reconciling if the software doesnt allow rounding off for Gross Amount (I have tried the free version of Cleartax and it doesnt allow rounding off the Gross Amount, dont know if this is the same with other GSP)

so suppose you purchase something 5.25per kg (GST 18%), weight of the product being 121 kg

So the Bill be 121 * 5.25 = 635.25

CGST 9% = 57.17

SGST 9% = 57.17

Round off = 0.41

Gross Amount = 750/-

Now if the rounding off is allowed then this bill is fine but when we enter this bill in Purchase in Cleartax then there is no option to enter this round off figure hence our purchase gross amount will be 749.59/- itself

Now when our Seller will file GST 1 if he enters Gross Amout as Rs.750/- and if we are using Cleartax then the amount in our GST 2 will be Rs.749.59/-

will this create Mismatch ?

if our software/GSP also provide option to round off then even we can enter Rs.750/-, and there wont be any mismatch...

but if GSP doesnt allow the rounding off due to some rules then when we generate sales invoice we should not round off the gross amount itself.

has anyone else tried any other GSP and came across this issue?

Mahesh Shaha (303 Points)
Replied 30 August 2017

Thanks Sir

SURANA (PROPRIETOR) (515 Points)
Replied 31 August 2017

Recently i bought some goods from AMAZON and i received the Tax invoice from AMAZON where CGST and SGST was mentioned but the TAX amount was not rounded off as per Section 170.

R K ( ) (5 Points)
Replied 09 April 2018

in my opinion, The Act does not specify to round of GST in individual case as in GSTR-1 on GSTN itself auto populate fraction amount upto 2 decimals of GST for individual taxable amount so while discharging aggregate liability we should round of GST amount or interest or any other sum payable under the act.

please provide any additional suggestions to this and do correct if wrong.