Rounding Off of Tax, etc. – Section 170 of GST Act

CHAPTER XXI – MISCELLANEOUS – Central Goods and Services Tax Act, 2017

Section 170 Rounding off of tax, etc.

170. 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.

1 thought on “Rounding Off of Tax, etc. – Section 170 of GST Act

  • Bank is charging Rs 15 per quarter for SMS charges.
    GST is applied on this service 18% means 2.7 rs. Bank is charging 3 rs every time taking advantage to this rounding rule ” Section 170 Rounding off of tax,”.
    Bank will be collecting huge extra money as this will be charged every quarter to every customer (SMS service).
    This rs 3 is not actually paid to bank by customer. This is only book entry. Why not bank make entry of Rs 2.7 debit every time to avoid additional charge

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