PA/CSI/02/118/2021-22
Government of India
Ministry of Communication
Department of Posts, PAF Wing
CSI Section, Dak Bhawan,
Sansad Marg, New Delhi — 110001
pawing.tech@indiapost.gov.in
pawing.tech@gmail.com
Dated: 08th June 2022
This is regarding clarification on the methodology for rounding off GST amount while collection of GST for the applicable services. In this connection, the methodology to be adopted for rounding off GST in accordance with the respective CGST/SGST/ITGST/UTGST acts, is as mentioned below
CGST Act: Under Section 170 of CGST Act 2017, rounding off the tax is mentioned as “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 and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored.”
SGST Act: Section 170 of relevant State GST Acts is exactly the same as mentioned under Section 170 of the CGST Act.
IGST Act: As per section 20 of IGST Act 2017, the provisions of CGST Act relating to rounding off (ie part — miscellaneous provisions) shall, mutatis mutandis, apply to IGST
UTGST Act: As per Section 21 of UTGST Act 2017, the provisions of CGST Act relating to rounding off (ie part — miscellaneous provisions) shall, mutatis mutandis, apply to UTGST.
2. In view of the provisions of the respective Acts, rounding off of the GST is to be done for
CGST/SGST/IGST/UTGST separately and amount is to be collected and accounted accordingly.
Illustrations showing the existing methodology and revised methodology are furnished in the Annexure for ready reference.
3. Kindly arrange to modify the calculation methodology as mentioned in Illustration- 02(including Note1 & Note2), in all the modules/software, wherever applicable.
This issues with the approval of Sr. DDG(PAF)
Annexure-1 to letter PA/CSI/02/1 18/2021-22 dated 08th June 2022
Illustration 01: Present methodology of GST calculation & rounding off All amounts in Rs.)
Note l: For Bulk Customers where invoices are generated, rounding off is to be done at invoice level and not at individual transaction level.
Note 2: Rounding off adjustment in GL 1800423500 to be stopped completely.
Note 3: GST returns are to be filed without fraction of a rupee against CGST/SGST.
The above rounding off calculation applies to CGST/SGST, CGST/UTGST, IGST collections, wherever applicable.
