GST Updates- New GST Returns

The immediate concern for all companies is to prepare themselves and their vendors and suppliers for
the new GST return filing mechanism, being test piloted from April 1. It is likely to be formally
introduced in July.

In the new mechanism, the uploaded GST invoices will be visible on a real-time basis to tax-payer and
the recipient of goods or services. Experts say all the buyers are expected to request their respective
vendors to upload invoices immediately to enable them to check the same ‘online’. This effectively
means that all the GST registered buyer will be required to check whether their vendors are uploading
the invoices and are paying taxes and filling returns.
New Accounting Standard-Adoption

The adoption of new accounting standard (IND-AS), especially those related to the treatment of leases,
is likely to the treatment of leases, is likely to throw several challenges at companies. The new
impairment provision would require both financial services entities and the regulator to take a closer
look at the impact on capital planning, pricing and alignment to risk management.

IND-AS 116 (pertains to leases) marks a shift in lease accounting by bringing off-balance sheet leases on
the balance sheet. With the help of which there is likely to be an increase in reported assets, liabilities
and EBITDA of lessees. Once the new standard is notified by the Ministry of Corporate Affairs, experts
say, this will impact wide number of sectors, including airline, retail and infrastructure, and also on
companies that seek large volume with large portfolios. This standard share the lease portfolio, the
greater the impact on key reporting metrics and financial ratios.

As commercial banks move to IND-AS, by FY 2020, it will require early recognition and a significant
increase in provisions for loans and off-balance sheet exposures based on an expected credit loss (ECL)
model. Experts point out that it will also require banking companies to assess their business model in
order to classify and measure financial assets.