Treatment for Provision Entries :
• Income
• Provisions are made as per requirement of Accounting standards/GAAP.
• Liability to pay GST arises as per time of supply.
• Time of supply generally, shall be at the time of removal of goods or completion of services.
• Hence, provisions for income may not be offered at the time of passing book entries.
• Eg. Un-billed revenue.
• Expenses
• Time of supply is also required to be seen for expenses.
• Unless time of supply happens, provision for expenses will not attract GST.
• Hence all the provision need not be reported under GST returns.