GSTN introduced new validation criteria for calculating Tax amount of the product line items in sales invoices and other GSTR-1 documents.

According to this new validation format provided by the Goods & Services Tax Network (GSTN), you will have to calculate the tax amount of every line item to be rounded up to two digits only. 

New GSTN Tax Amount Validation Example:

If the taxable value of a product is Rs. 500.95 and the applicable tax rate is 18%, then the tax amount to be calculated as follows:

=18% of 500.95 = Rs.90.17 (Rounded off to two digits)

Hence, previously accepted values such as 45, 47.1, 52.428 will result in an error from the GSTN portal.

When you are filing your returns using offline Excel utility, do make sure that the tax amount of line items in your Excel files matches this new validation. GSTN portal may throw the following error message if the new validation criteria are not complied with. 

“Per GSTN's latest requirements, Tax amount should be 90.17 (i.e. 500.95 * 18%), rounded up to 2 digits”.

For any questions and clarifications, contact our tax advisors for help in filing your GST returns.