# (English) GST Rounding Rules for Tax Values

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In business, it is common to face scenarios where the value of tax turns out to be in decimals. How to treat such values? Should the amount of tax be retained with decimals? Or should it be rounded upward to the nearest rupee? Or should it be rounded downward to the nearest rupee? Let us first understand the methods of rounding used by businesses and later, the GST rounding rules to be used for tax values.

### Methods of rounding for tax values

A business will usually use any of the following methods to round off tax values.

- Normal rounding
- Upward rounding
- Downward rounding

Let us understand how each of these methods works.

#### Normal rounding

In this type of rounding, if the value in Paise is 50 Paise or more, it is rounded upward to the nearest Rupee. If the value in Paise is less than 50 Paise, it is rounded downward to the nearest Rupee.

**For example:** If the value of tax in an invoice is Rs. 200.60, the same will be rounded off to Rs. 201. If the value of tax is Rs. 200.40, the same will be rounded off to Rs. 200.

#### Upward rounding

In this type of rounding, the value in Paise is always rounded upward to the nearest Rupee.

**For example:** Value of tax of Rs. 200.60 will be rounded off to Rs. 201 and value of tax of Rs. 200.40 will also be rounded off to Rs. 201.

#### Downward rounding

In this type of rounding, the value in Paise is always rounded downward to the nearest Rupee.

**For example:** Value of tax of Rs. 200.40 will be rounded off to Rs. 200 and value of tax of Rs. 200.60 will also be rounded off to Rs. 200.

### GST rounding rules

The method to be used for rounding off in GST invoice is **normal rounding**, i.e. if the value in Paise is more than 50 Paise, it should be rounded upward to the nearest Rupee and if the value in Paise is less than 50 Paise, it should be rounded downward to the nearest Rupee.

This GST calculation rounding method is used to compute the value of tax, interest, penalty, fine or refund.

Hence, tax payers should ensure that values of tax, interest, penalty, etc. are rounded off using normal rounding method.

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#### Author: Anisha K Jose

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good work tally, thank you

Dear Sir,

We have created seperate ledges for CGST & SGST and set normal rounding for both (which laid down in both respective laws)

But sometimes when due to r/o of these both duties there comes a difference of ₹1 in total duty viz. 18%,etc. At that time tally shows an error.

Please work on it.

good explanation

Nicely Explained

Sir I sold out exude bettry and adjust old bettry of customer how it entry post in tally

We suggest you to contact our support team at support@tallysolutions.com

Sir,

What happens when it is 100.50 in normal rounding will it become 101 or 100 please guide

thanks

My fixed assets purchase and lift maintenance with service for one year shows in closing stock, later try to correct but the field show as fixed assets or just service in invoice as voucher not allowing changes, what to do

Stock Item creation not required for fixed assets and services.

Pass stock journal voucher for adjustments

Otherwise call me on 9463141823 for online support

Rajesh Bindal

Sia Softech, Sunam (Pb)

But while uploading invoices in gaye 1 gst tax is not rounded only final credit or debit is rounded so there us always chance of miss match of small amounts in return and actualizaciones books of assee

good information .

My supplier rounds off the tax amount in invoice issued to us but in GSTN in GSTR 2 or 2A it calculates automatically the tax without rounding off. Pl clarify.

Is rounding off mandatory or is it optional? If mandatory at what level, i.e. should individual tax components (cgst/sgst/igst/cess) be rounded item wise? or invoice wise? or gstr-1 table wise?