stapler (bus) (307 Points)
19 October 2020Some suppliers round off GST in invoices, eg. if IGST is say Rs 570.65, they would charge it as Rs 571.
What should be correct input credit to take against this 570.65 or 571?
Supplier would show 571 in his GSTR1, so if we take calculated amount 570.65, then there will be mismatch.
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 19 October 2020
As per Section 170 of the CGST act 2017 Tax payer has to round off the amount of Tax , interest , penalty , fine or any other sum payable .
stapler
(bus)
(307 Points)
Replied 19 October 2020
Yes, but is the rounding off to be done at the invoice level, or isn't it for rounding off the aggregate tax at the time of depositing, or taking aggregate ITC in GSTR 3B?
In GSTR1, they're allowing two decimal places for output taxes. This may imply that invoice wise taxes shouldn't be rounded!
Please have your views. Thanks.
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 19 October 2020
Write round off Tax amount in Invoice also tell customer to make round off while paying . It has been clearly mentioned in the CGST act Payable tax should be rounded off .
stapler
(bus)
(307 Points)
Replied 19 October 2020
Sir exactly, but tax is only 'collected' from buyers through invoices. The 'payable' event occurs only at the time of filing 3B, when we are supposed to 'pay' or offset our liabilities from cash and credit ledgers. Technically, that total payment only needs to be rounded off as per Sec. 170.
The moot question remains, if supplier has rounded say, Rs 570.65 to Rs 571, what ITC we should take?
Regards.
CAclubindia
