DoP : Methodology for rounding off CGST, SGST, UTGST & IGST (08-06-22)

DoP : Methodology for rounding off CGST, SGST, UTGST & IGST (08-06-22)

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: 08 June 2022

To

The General Manager CEPT, Bengaluru

Sir

Sub: Methodology for rounding off CGST, SGST, UTGST and IGST-reg

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 Illustration02(including Notel & Note2), in all the modules/software, wherever applicable.

This issues with the approval of Sr. DDG(PAF)

Encl: As above

Accounts Officer (CSI)

Copy to

1. All the CPMSG 

2. CGM PLI Directorate / CGM Parcel Directorate 

3. DDG(RB, Plg & RICT) with reference to email dated 13-05-2022 in connection with

implementation of CSC VLE 

4. DDG(FS & PBI) /DDG(IR)/DDG(PO) /DDG(MO) / GM(BD) 

5. All the General Managers(Finance) /Directors of Accounts(Postal) 

6. Office Copy