Aggregate Turnover

The total value of all taxable, exempt, and export supplies made by a business in a financial year, used to determine GST registration eligibility.

Appeal under GST

The process of challenging a GST assessment or ruling made by tax authorities, typically through formal legal procedures.

Assessment under GST

The process by which tax authorities determine the GST liability of a business, either through self-assessment or tax audits.

Authorized Representative

A person or entity authorized to act on behalf of a business for GST purposes, including filing returns and handling tax-related matters.

B2B (Business to Business)

Transactions where one business sells goods or services to another business, often with GST applied.

B2C (Business to Consumer)

Transactions where a business sells goods or services directly to consumers, often with GST included in the price.

Balance Sheet under GST

A financial statement that includes details of GST liabilities, input tax credit, and other GST-related items, along with the company’s assets and liabilities.

Bill of Supply

A document issued by a registered supplier for exempt goods or services or under the composition scheme, without charging GST.

CGST (Central Goods and Services Tax)

A tax levied by the central government on intra-state supplies of goods and services in India collected along with SGST or UTGST.

Composite Dealer

A taxpayer registered under the GST composition scheme, paying tax at a fixed rate on turnover instead of the standard GST rate.

Composite Supply

A supply consisting of two or more goods or services that are naturally bundled and supplied together, treated as a single supply under GST.

Composition Scheme

A simplified tax scheme for small businesses, allowing them to pay GST at a fixed rate based on their turnover instead of regular GST rates.

Continuous Supply of Goods

The ongoing delivery of goods over a period, where payments may be made at intervals, such as in long-term contracts.

Continuous Supply of Services

The ongoing provision of services over a period, where payments are made periodically, like in subscription services.

Credit Note under GST

A document issued by a supplier to reduce the amount of tax payable on a supply, often due to a return or price adjustment.

Customs Duty

A tax imposed on goods when they are imported or exported across international borders.

Debit Note under GST

A document issued by a supplier to increase the tax payable on a supply, often due to undercharging or additional services provided.

Deemed Supply

Transactions treated as supplies for GST purposes, even if no actual sale occurs, such as gifts or goods taken for personal use.

Destination Principle

A tax principle where goods and services are taxed at the location where they are consumed, rather than where they are produced.

Destination-Based Taxation

A system where taxes are collected in the jurisdiction where goods or services are consumed, often used in cross-border trade.

Electronic Cash Ledger

A digital account maintained on the GST portal, showing the balance of cash available to pay taxes, interest, or penalties.

Electronic Credit Ledger

A digital account on the GST portal that shows the input tax credit available to a business for offsetting GST liability.

Electronic Way Bill (E-Way Bill)

A digital document required for the transportation of goods worth more than a specified amount, ensuring compliance with GST rules.

Exempt Goods

Goods that are not subject to GST, either because they are specifically excluded from the tax base or fall below the taxable threshold.

Exempt Supplies

Goods or services that are not subject to GST, meaning no tax is charged on them, and input tax credit cannot be claimed.

Export of Goods

The sale of goods to a customer in another country, often zero-rated for GST purposes.

Export of Services

The provision of services to a customer in another country, typically zero-rated for GST purposes.

GST (Goods and Services Tax)

A comprehensive tax levied on the supply of goods and services, replacing many indirect taxes and collected at each stage of production and sale. Read more

GST Audit

A review conducted by tax authorities or businesses to ensure compliance with GST laws, including proper reporting and payment of taxes.

GST Compensation Cess

An additional tax imposed on certain luxury or sin goods to compensate states for any loss of revenue due to the implementation of GST.

GST Compliance

Adherence to GST laws and regulations, including timely filing of returns, payment of taxes, and maintaining accurate records.

GST Composition Scheme

A simplified tax scheme for small businesses with a turnover below a specified limit, allowing them to pay tax at a lower rate without claiming input credits.

GST Council

A governing body that makes recommendations on GST rates, policies, and rules in India, comprising representatives from the central and state governments.

GST E-Commerce Operator

A business that facilitates online sales of goods or services and is responsible for collecting and paying GST on behalf of sellers using its platform.

GST Filing

The process of submitting GST returns to tax authorities, detailing a business’s sales, purchases, input tax credit, and tax payable.

GST Input Tax Credit

A mechanism that allows businesses to reduce their GST liability by claiming credit for the GST paid on purchases used in their business.

GST Non-Compliant Invoice

An invoice that does not meet the necessary GST requirements, such as missing information, which may result in the denial of input tax credit.

GST Number (GSTIN)

A unique 15-digit identification number is assigned to businesses registered under the Goods and Services Tax system. Read more about GST Number (GSTIN)

GST Output Tax

The GST a business charges on the sale of goods or services, which is then payable to the government.

GST Portal

The online platform where businesses register for GST, file returns, and manage their GST-related accounts and payments.

GST Practitioner

A professional authorized to assist businesses with GST-related matters, such as filing returns and advising on compliance issues.

GST Refund

The process of claiming back GST that has been overpaid or for which input tax credit exceeds the output tax liability.

GST Registration

The process of signing up with tax authorities to collect and pay GST, typically mandatory for businesses with turnover above a certain threshold.

GST Regulation

Laws governing the implementation of the Goods and Services Tax, crucial for businesses dealing in taxable goods and services.

GST Return

A form submitted to tax authorities detailing a business’s GST liability, sales, purchases, and input tax credit for a specific period.

GST Reverse Charge Mechanism

A system where the buyer, rather than the seller, is responsible for paying the GST on certain transactions, such as imports or services from unregistered suppliers.

GST Tax Invoice

An invoice includes details required under GST laws, such as the GSTIN, amount of tax charged, and description of goods or services.

GSTN (Goods and Services Tax Network)

The IT backbone of GST in India, responsible for processing GST returns, payments, and registrations through the GST portal.

GSTR-1

A monthly or quarterly return that businesses file to report their outward supplies (sales) and the amount of GST collected.

GSTR-2A

A dynamic, auto-populated form that shows details of inward supplies (purchases) from the GSTR-1 filed by suppliers, used to reconcile input tax credit.

GSTR-3B

A summary return filed by businesses to declare their GST liabilities for a tax period and claim input tax credit.

HSN Code (Harmonized System of Nomenclature)

A globally recognized system for classifying goods, used for determining GST rates on products based on their HSN code.

IGST (Integrated Goods and Services Tax)

A tax levied on inter-state supplies of goods and services in India, collected by the central government.

Import of Goods

The purchase of goods from another country, subject to GST, with taxes often payable at the point of entry.

Import of Services

The receipt of services from a provider located in another country, often subject to reverse charge GST.

Input Service Distributor (ISD)

A mechanism that allows businesses with multiple locations to distribute the input tax credit received on services to their various branches.

Input Tax Credit (ITC)

A credit that businesses can claim for the GST paid on purchases used to make taxable supplies, reducing their GST liability.

Inter-State Supply

A transaction where goods or services are supplied from one state to another, subject to IGST.

Intra-State Supply

A transaction where goods or services are supplied within the same state, subject to CGST and SGST.

Inverted Tax Structure

A situation where the tax rate on inputs is higher than the tax rate on outputs, often leading to excess input tax credit.

Invoice Reference Number (IRN)

A unique number generated by the GST system to authenticate and track e-invoices, ensuring compliance with GST laws.

Job Work under GST

A process where goods are sent to a job worker for further processing or production, often subject to GST on the final product.

Liability Ledger

An account maintained in the GST portal showing the amount of tax liability owed by a business to the government.

Nil Rated Supply

Goods or services that attract a GST rate of 0%, meaning no tax is charged, but input tax credit may still be claimed.

Non-GST Supply

Goods or services that are outside the scope of GST, meaning they are not taxable under GST laws.

Output Tax

The tax that a business charges on its sales, which is payable to the government.

Over-the-Counter Payment

A payment made in person at a bank or authorized payment center, often used for paying GST dues.

Partial Exemption

A situation where a business makes both taxable and exempt supplies, allowing it to claim input tax credit only on the taxable supplies.

Place of Supply Rules

Rules that determine the location where a transaction is taxed, used to ensure the correct application of GST rates.

Provisional Assessment

A temporary assessment of tax liability by tax authorities when the final tax amount cannot be determined immediately, allowing for adjustments later.

Registration Certificate under GST

An official document issued to businesses upon successful registration under GST, confirming their legal status as GST payers.

Self-Assessed Tax

A tax that a business calculates and pays based on its own assessment of its tax liability, subject to later verification by tax authorities.

SEZ (Special Economic Zone)

A designated area where businesses enjoy tax benefits, such as exemptions from GST, to promote trade and investment.

SGST (State Goods and Services Tax)

A tax levied by state governments on intra-state supplies of goods and services in India, collected along with CGST.

Supply of Goods

The sale or transfer of goods from one party to another, often subject to GST depending on the location of supply.

Supply of Services

The provision of services to a customer, is subject to GST based on the location and nature of the service.

Tax Filing

The submission of tax returns to relevant authorities, required for legal financial operations.

Tax Regulations

Rules governing the application and calculation of taxes, ensuring compliance with legal standards.

Taxable Goods

Goods that are subject to GST, meaning tax must be charged on their sale or supply.

Taxable Person under GST

A person or entity that is registered or required to be registered under GST and is liable to collect and pay GST on their sales.

Taxable Supply

A sale of goods or services that is subject to GST, requiring the seller to charge and account for the tax.

TCS (Tax Collected at Source)

A tax collected by the seller from the buyer at the point of sale, applicable to specific goods or transactions, and paid to the government.

TDS (Tax Deducted at Source)

A tax deducted from certain payments made by a business to a supplier or contractor, and paid directly to the government on behalf of the supplier.

Threshold Limit for GST Registration

The minimum turnover a business must reach before it is required to register for GST, varying by jurisdiction.

Time of Supply

The point at which a transaction is considered to have occurred for GST purposes, determining when tax must be charged.

Turnover under GST

The total value of all taxable supplies, exempt supplies, and exports made by a business, used for determining GST liability.

Unified GST Law

A standardized GST framework that applies across all states and union territories in India, ensuring consistent tax rules.

Union Territory Goods and Services Tax (UTGST)

A tax levied on intra-union territory supplies of goods and services, collected along with CGST in union territories of India.

Value of Supply under GST

The total consideration for a supply of goods or services, including taxes, discounts, and any additional charges, used to calculate GST.

Voluntary Registration

The process of a business registering for GST before it reaches the required turnover threshold, often done to reclaim input tax credits.

Zero-Rated Goods

Goods that are taxed at a GST rate of 0%, meaning no tax is charged, but businesses can still claim input tax credit.

Zero-Rated Supplies

Supplies that are subject to a 0% GST rate, allow businesses to recover the GST on their purchases related to these supplies.