Round off GST Amount and E Invoice / Way Bill Rejection in Tally prime

Hi Sujit,

This is a common issue many face when using Tally Prime with GST e-invoice and waybill portals due to rounding differences between software and the government portal validation.

Why this happens:

• Tally rounds CGST and SGST separately (e.g., each up to 0.50 paise), but the e-invoice system expects the total GST amount (CGST + SGST) to match exactly with the invoice amount after rounding.

• If Tally rounds CGST and SGST individually, the sum might differ by 1 paise compared to the e-invoice system’s calculation, causing rejection.

How to resolve this:

1. Disable individual round off of CGST & SGST:
   Configure Tally to round off GST as a whole, i.e., round off total tax amount, not individual components.

   • Go to Gateway of Tally > F11: Features > Statutory & Taxation

   • Look for "Allow GST Rounding Off" and "Round Off to nearest" options.

   • Ensure rounding is applied on the total GST amount, not separately on CGST and SGST.

2. Update Tally Prime to Latest Version:
   Ensure you are on the latest Tally Prime release with all GST and e-invoice compliance updates.

3. Use the 'E-Way Bill' & 'E-Invoice' Modules Properly:
   Always generate the invoice through the e-invoice module in Tally itself, which applies correct rounding as per GST rules.

4. Avoid manual adjustments:
   Don’t manually alter GST amounts in the voucher, let Tally handle the calculations automatically.

5. Validate Before Upload:
   Use Tally’s pre-upload validation tool to check the invoice and catch mismatches early.

Summary:

Round off the total GST amount instead of CGST and SGST separately in Tally to avoid mismatch errors with the e-invoice system.

The fix is to round only the invoice total, not the tax heads:

• The e-invoice (IRP) schema validates CGST/SGST/IGST line by line against taxable value x rate, with a tolerance of about Re 1. Rounding each tax head up to 50 paise in Tally pushes it outside tolerance, so the IRN is rejected.

• In TallyPrime, set the CGST/SGST ledgers' "Rounding Method" to "Not Applicable" (rounding to 2 decimals only). Create a separate "Rounding Off" ledger (Indirect Expenses/Income, GST applicability: Not Applicable) and use it to round the invoice total.

• The JSON then carries the rounding in "RndOffAmt", which the IRP accepts.

• Legally, rounding tax amounts is allowed at the return/payment level (Sec 170: tax rounded to the nearest rupee), not per invoice line.

• Regenerate the IRN for rejected invoices within the reporting window (30 days for AATO of Rs 10 crore and above, from April 2025). Invoices not registered on the IRP are not valid tax invoices for B2B.