GST on Excess Provision in Books

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Dear All

In books we create Over head Expenses based on cost to be incurred in future . In year end , if it is high to actual expenses incurred then will GST Liability arises . Because  in Accounts for true and fair picture of Financials provision and reversal are routine practice.

Regards 

 

Replies (1)
Provision should be without GST. There will be no question as to GST Liability as far as provisions and reversal thereof is concerned.


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