GST Glossary

Verification process using Aadhaar number for GST registration. Mandatory for proprietors, partners, and authorized signatories to establish identity.

Legal process where a proper officer examines evidence, hears the taxpayer, and passes an order determining tax liability, interest, and penalty.

Binding decision by Authority for Advance Ruling (AAR) on classification, applicable tax rate, or other specified questions under GST law.

Person who owns and manages electronic platform for supplying services like cab service, food delivery through partnerships.

Relief scheme announced periodically by government to waive late fees and penalties for past period returns filing.

Total value of all taxable supplies, exempt supplies, exports, and inter-state supplies of a person having same PAN, excluding taxes and inward supplies attracting reverse charge.

Provision to ensure that benefit of tax reduction or input tax credit is passed on to consumers through commensurate price reduction.

Legal remedy to challenge orders passed by GST authorities. Filed before Appellate Authority within 3 months with mandatory pre-deposit of 10% disputed amount.

Process of determining tax liability. Includes self-assessment by taxpayer, provisional assessment, and scrutiny/audit assessment by department.

Assessment made by officer based on available material when taxpayer fails to file returns or provide information despite notice.

Document issued by composition dealers or for exempt/nil-rated supplies instead of tax invoice. Does not show GST separately.

Input tax credit that cannot be claimed as per Section 17(5), including motor vehicles (with exceptions), food & beverages, membership clubs, etc.

Drugs & pharmaceuticals falling under specific HSN codes with concessional GST rates. Special tax structure applies.

Goods whose value is capitalized in books of account and depreciated. Full ITC can be claimed immediately on receipt (except blocked items).

Person who occasionally undertakes taxable supply in a state where they have no fixed place of business. Must register before starting business.

Component of GST levied by Central Government on intra-state supply of goods and services. Governed by CGST Act, 2017.

Form PMT-06 used to deposit GST through electronic payment. Generated on GST Portal for paying tax, interest, penalty, or fees.

Supply of two or more goods/services naturally bundled, where one is principal supply. Taxed at rate of principal supply.

Simplified scheme for small taxpayers with turnover up to ₹1.5 crore to pay tax at lower rates (1%/5%/6%) without ITC benefit.

Supply where time of provision cannot be determined, provided continuously over period under contract.

Document issued when taxable value or tax charged is found to be more than actual. Reduces output tax liability of supplier.

Document issued when taxable value or tax charged is found to be less than actual. Increases output tax liability of supplier.

Transactions considered as supply even without consideration, like business assets transfer, stock transfer to branches, etc.

Document issued for movement of goods without invoice, such as job work, sample, exhibition, or line sale. Not a taxable document.

QR code in invoices containing payment details. Mandatory for B2C invoices above specified limits for digital payment facilitation.

Electronically generated invoice with unique Invoice Reference Number (IRN) and QR code. Mandatory for businesses above specified turnover.

Electronic document required for movement of goods worth over ₹50,000. Contains details of goods, transporter, and vehicle.

Digital ledger in GST Portal where cash deposits are credited. Used to pay tax liability. Can be refunded if excess.

Digital ledger showing available Input Tax Credit. Auto-credited when returns are filed. Used to set off output tax liability.

Goods on which GST is not levied, including fresh vegetables, milk, curd, certain grains, and items in exempt notification.

Supply of goods or services on which no GST is levied. Includes healthcare, education, agricultural produce, etc. No ITC available.

Supply of goods or services outside India. Zero-rated supply allowing refund of input tax credit or payment without tax with bond/LUT.

Normal mechanism where supplier of goods/services collects GST from recipient and deposits to government.

GST Identification Number - unique 15-digit number assigned to each registered taxpayer. Format: 2 digits state code + 10 digits PAN + entity code + checksum.

Return for outward supplies showing all sales made. Filed monthly by 11th or quarterly by 13th of month after quarter.

Auto-populated read-only form showing purchases from suppliers. Being replaced by GSTR-2B for ITC reconciliation.

Auto-generated static statement of available ITC for a month, generated on 14th of next month. Used for ITC reconciliation.

Summary return filed monthly/quarterly declaring tax liability and ITC. Due by 20th/22nd/24th depending on state and taxpayer category.

Quarterly return for composition scheme taxpayers. Due by 18th of month following quarter-end.

Annual return consolidating all monthly/quarterly returns. Mandatory for regular taxpayers with turnover above ₹2 crore.

Reconciliation statement certified by CA/CMA reconciling annual return with audited financial statements. Required if turnover exceeds ₹5 crore.

Harmonized System of Nomenclature - 8-digit international code for classifying goods. Mandatory disclosure in invoices based on turnover.

GST levied on inter-state supply of goods and services and imports. Collected by Central Government and shared with states.

Bringing goods or services into India from outside. IGST is levied on imports along with customs duties.

Input tax credit that cannot be claimed like blocked credit items, goods for personal use, or ITC when consideration not paid in 180 days.

Goods other than capital goods used or intended to be used in course of business for making taxable supplies.

Services used or intended to be used in course of business for making taxable supplies, including construction of plant & machinery.

Office of supplier that receives tax invoices for services and distributes ITC to multiple business locations having same PAN.

Credit of GST paid on purchases (inputs, capital goods, input services) that can be set off against output tax liability.

Physical examination of business premises, goods, and records by GST officer with proper authorization to verify compliance.

Supply of goods or services where location of supplier and place of supply are in different states. IGST is levied.

Charged at 18% per annum on delayed payment of GST from due date till actual payment. Calculated on daily basis.

Supply of goods or services where location of supplier and place of supply are in same state. CGST + SGST is levied.

Tax invoice issued by registered supplier showing details of supply, HSN/SAC codes, GST amount, and GSTIN. Primary document for claiming ITC.

Optional facility for QRMP taxpayers to upload large B2B invoices in months when GSTR-1 is not filed, enabling buyer's early ITC claim.

Treatment or process undertaken on goods belonging to another person. Special provisions allow movement without payment of tax.

Fee charged for delayed filing of returns. ₹50 per day per Act (₹100 total) for regular returns, ₹20 per day (₹40 total) for NIL returns.

Undertaking given by exporter to make zero-rated supplies without payment of IGST. Alternative to bond with surety.

Output tax payable on taxable supplies made. Calculated as value of supply multiplied by applicable GST rate.

Process of comparing supplier's GSTR-1 with recipient's GSTR-2 to verify ITC claims. Now done through GSTR-2B auto-population.

Process of transitioning from pre-GST regime (VAT, Service Tax, Excise) to GST. Provisional IDs were given to existing taxpayers.

Two or more supplies combined for single price which are not naturally bundled. Taxed at highest applicable rate.

Supply on which GST rate is 0%. Different from exempt supply as ITC is available for nil-rated supplies.

Person who occasionally supplies goods/services but has no fixed place of business in India. Must register before starting supply.

Official communication from GST department intimating taxpayer about discrepancy, demand, or asking to show cause. Must be replied within stipulated time.

GST charged and collected by supplier on outward supplies. Deposited to government after set off of input tax credit.

10-digit alphanumeric tax identification number issued by Income Tax Department. Mandatory for GST registration.

Monetary punishment for GST violations. Generally 100% of tax evaded, reducible to 15% if paid within specified time with tax and interest.

Location where supply is deemed to occur. Determines whether transaction is inter-state (IGST) or intra-state (CGST+SGST).

Address mentioned in GST registration certificate where business records are maintained. Can be residential or commercial premises.

Assessment where taxable value or tax rate cannot be determined at time of supply. Final assessment done later.

Quarterly Return Monthly Payment - scheme allowing businesses with turnover up to ₹5 crore to file returns quarterly while paying tax monthly.

Person who receives supply of goods or services. Liable to pay tax under reverse charge in specified cases.

Process of matching ITC claimed with eligible ITC in GSTR-2B and supplier's GSTR-1. Annual reconciliation done in GSTR-9.

Action to recover unpaid tax through bank account attachment, property attachment, garnishee orders, or auction.

Correction of clerical or arithmetical errors in assessment order by same authority. Can be done within 3 months or within 6 months if pointed out.

Return of excess tax paid, including zero-rated supplies, ITC accumulated due to inverted duty, and excess balance in cash ledger.

Process of obtaining GSTIN. Mandatory when turnover exceeds threshold or for specified categories like inter-state suppliers.

Taxpayer registered under normal GST provisions (not composition). Can collect GST, issue tax invoices, and claim ITC.

Statement of income, sales, purchases, and tax paid filed periodically. Various forms exist for different taxpayer categories.

Tax payment liability shifts from supplier to recipient. Applicable in specified cases like imports, certain services, and supplies from unregistered persons.

Services Accounting Code - 6-digit code for classifying services. Mandatory disclosure in invoices based on turnover threshold.

Examination of returns by GST officer to verify correctness and compliance. Discrepancies are communicated through ASMT-10 notice.

Power of GST officer to search premises and seize goods/documents when tax evasion is suspected. Requires proper authorization.

Assessment of tax liability by taxpayer themselves. Primary method under GST where taxpayer calculates and pays tax.

Component of GST levied by State Government on intra-state supply. Each state has its own SGST Act mirroring CGST provisions.

Notice asking taxpayer to show reason why proposed demand of tax, interest, and penalty should not be confirmed. Must respond within stipulated time.

Designated duty-free area for export production. Supplies to SEZ are zero-rated. SEZ units have special GST provisions.

Written order requiring person to appear before GST officer for examination or to produce documents. Non-compliance attracts penalty.

Action taken by authority on its own without complaint or application. For example, suo moto refund by department in certain cases.

Person making taxable supply of goods or services. Liable to collect and deposit GST to government.

All forms of transfer of goods or services including sale, lease, barter, exchange, or disposal for consideration. Taxable event under GST.

Invoice issued by registered supplier showing GST amount separately. Essential document for buyer to claim ITC.

Period for which return is filed. Monthly for regular taxpayers, quarterly for QRMP and composition dealers.

Person registered or liable to be registered under GST. Includes regular taxpayers, composition dealers, and casual/non-resident persons.

Supply of goods or services which is subject to GST. Excludes exempt supplies but includes zero-rated supplies.

Transaction value on which GST is calculated. Generally the price paid or payable, excluding GST.

Tax collected by e-commerce operators at 1% (0.5% CGST + 0.5% SGST) on net value of taxable supplies made through their platform.

Tax deducted by government and specified entities at 2% (1% CGST + 1% SGST) on payments above ₹2.5 lakh to suppliers.

Turnover limit below which GST registration is not required. ₹40/20 lakh for goods and ₹20/10 lakh for services in normal/special states.

Point when liability to pay GST arises. Determines tax period in which transaction must be reported.

Credit of taxes paid under pre-GST regime (VAT, Excise, Service Tax) that could be carried forward to GST regime during migration.

Aggregate value of all taxable supplies, exempt supplies, exports, and inter-state supplies. Used to determine registration threshold and scheme eligibility.

Special registration for UN bodies, embassies, and other notified entities to claim refund of GST paid on purchases.

Person not registered under GST. Cannot collect GST or issue tax invoices. Recipient pays tax under RCM for specified supplies.

GST levied by Union Territories without legislature on intra-UT supplies. Mirrors SGST provisions.

Method of determining taxable value for GST calculation. Generally transaction value, with special rules for related party transactions.

Registration opted for despite turnover being below threshold limit. Allows claiming ITC and issuing tax invoices.

Document accompanying goods during transit. E-way bill is electronic version generated on common portal for inter-state and specified intra-state movements.

Exports and supplies to SEZ. GST rate is zero, and full ITC refund is available. Can be made with or without payment of tax.