GST implications on year end provisions in books of accounts

Mohammad Salim – [2022] 137 taxmann.com 250 (Article)

Creation of provision for expenses in the books of accounts is a normal accounting practice and is religiously followed upon at end of a financial year / every reporting period as same is required to be created in accordance to the applicable Accounting Standards.

As per Accounting Standard 29 “Provisions, Contingent Liabilities and Contingent Assets” a ‘provision’ is a liability which can be measured only by using a substantial degree of estimation. In this article, the author has deliberated upon the GST implications on provision for expenses recognized in Books of Accounts.

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