Chapter XXI - Miscellaneous
Section 170
Section 170: Rounding off of tax, etc.
Tax, interest, penalty, fine, refunds and other sums under the CGST Act are rounded to the nearest rupee.
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Need advice on Section 170?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
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.
Key takeaways
At least 50 paise
A fractional amount of fifty paise or more increases to the next whole rupee.
Below 50 paise
A fractional amount below fifty paise is ignored.
Both directions
The rule covers amounts payable under the Act and refunds or other sums due.
At least 50 paise
A fractional amount of fifty paise or more increases to the next whole rupee.
Below 50 paise
A fractional amount below fifty paise is ignored.
Both directions
The rule covers amounts payable under the Act and refunds or other sums due.
Practical checklist
Do
- Calculate the underlying amount before final rounding.
- Apply the fifty-paise threshold to the statutory sum.
Frequently asked questions
What happens to a 49-paise fraction?
It is ignored when the CGST Act amount is rounded to the nearest rupee.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026