The Giant Giddh GST Glossary

All you need to know about GST in India

2017 is a historic year in the Indian taxation history. It is the year that simplified the entire nation into a single tax regime that conforms to the international tax framework across the globe. The Goods and Services Tax (GST) came as a great step in the movement towards solid economic reforms in the country. This move was strongly supported by the industry as well and has since brought along several far-reaching impacts. 

How to file GST returns

GST returns can be filed online by accessing the portal www.gst.gov.in. There are several software and apps that are designed to help you in filling out appropriate GSTR forms. 

Returns can be filed easily by following these stepwise guidelines given below: 

– Register online by visiting the GST portal and updating your PAN to receive your unique 15-digit GSTIN as per your State. 

– Upload all invoices on the portal to generate an invoice reference number for each invoice separately.

– Fill out appropriate forms for outward return, inwards return and consolidated monthly returns. Check for errors and file the returns.

Note:

• Outward supply returns are to be filed using GSTR-1 form on or before the 10th of the succeeding month. Details supplied thereof will be made available to the recipient in GSTR-2A, who shall duly verify and validate the information supplied therein along with additional details such as credit or debit notes.
• Details of inward supplies are to be made using the GSTR-2 form, which will be made available to the supplier for subsequent acceptance or rejection. Any modifications will be made available to the recipient in GSTR-1A.

Living in the GST realm, however, can be a challenge for a business if you are not familiar with GST-related terms, and what this umbrella tax system entails. Here are some of the important definitions and GST- related terminology defined in a comprehensive manner for your ready reference: 

Additional Cess

– It is an extra levy charged on some notified as compensation for any loss and bridge gaps in revenue that may have been incurred by the State government due to the reduction of tax rates on certain goods under the GST. This is levied for the first five years after the implementation of GST.

Address of Delivery

– This refers to the location of the receiver of goods and/or services as mentioned on the tax invoice that is issued by a taxable person.

Address on Record

– Refers to the address of the receiver of goods and/or services as listed in the records of the supplier. This may or may not be the same as the delivery address.

Adjudicating Authority

– refers to any authority which is competent to pass orders or decisions relating to the GST Act. This, however, does not include the Central Board of Excise and Customs, the revision authority, the authority for advance ruling, or any of the appellate authorities including appellate authority for advance ruling or the appellate tribunal.

Aggregate Turnover

– defines the total value of all taxable supplies, exempt supplies, exports of goods and/or services, and interstate supplies that fall under the same PAN and is calculated on a pan-India basis and is computed after excluding taxes. However, admission of the value of inward supplies based on the reverse-charge mechanism is not permitted herein.

Appellate Tribunal

– Refers to the tribunal responsible for Goods and Services Tax Tribunal set up under the GST Act section 109.

Application Service Providers (ASPs)

– These are agencies that provide GST related services such as filling GST returns forms, filing GST returns, getting new GST registration, etc. and help in addressing difficulties or constraints faced by taxpayers about GST. They work as liaison between the taxpayers and the GSPs.

Appropriate Government

– The Central Government for IGST, UTGST, and CGST, and the State Government for SGST.

ARN Number

– It is a unique system-generated number on the GST portal following a successful GST enrolment or transaction.

Assessment of Tax Liability

– Refers to the process of computing the amount of tax that a specific taxpayer is liable to pay depending on the outward and inward supplies information provided by them on the portal.

B

B to B

-refers to the transaction carried out between two or more registered individuals or entities.

B to C

– Refers to the transaction carried out between a registered party and one or more unregistered individuals or entities.

Bill of Supply

– is an informal document issued by a GST exempted goods supplier or service provider or by a composition dealer and does not necessarily contain any tax information.

C

Capital Goods

-Items purchased and intended for use in doing business in order to achieve sales or to generate income). It includes any goods that are capitalized in the book of accounts and items for which credit is claimed.

Cash Ledger

– It is one of the secondary ledgers that are maintained by a firm in addition to the general ledger. It holds a record of all transactions charged to the cash accounts of the company or its branches.

Casual Taxable Person

-Refers to an individual who occasionally undertakes transactions that involve the supply of goods and/or services during business. He may take part as a principal or an agent in a transaction that is carried out in a taxable territory where he has no fixed place of business.

CGST

– is the tax levied by the Centre on any transactions of taxable goods and/or services carried out within one state/UT.

Common Portal

– refers to the council recommended GST website approved by both the Central and the State Governments for carrying out any GST related transactions.

Composite Supply

– Refers to the supply of two or more goods and/or services, which are naturally bound or provided together as a package.

Composition Scheme

– This refers to a special taxation scheme rolled out for small businesses that have a turnover below 1 Crore. This scheme allows such businesses to pay tax at a fixed rate of annual income instead of normal GST rates.

Consideration

– Relates to situations where goods and/or services are supplied against payment made or to be made in money or kind, or monetary value of any act or forbearance, either voluntarily or otherwise.

Credit Note

– Refers to any document issued by a taxable individual in relation to the tax invoice exceeding taxable value and/or tax payable where goods supplied are returned by the receiver or where the services given are found to be deficient/ faulty.

D

Debit Note

– Refers to any document issued by a taxable individual when the tax levied as per the tax invoice is found to be less than the taxable value and/or tax payable as it may be in that particular case.

Demerit Goods

– This refers to an item or service that is considered unhealthy, degrading, or socially undesirable due to the seemingly negative impact its consumption may have on the consumers. E.g., Tobacco based products.

Digital Signature Certificate (DSC)

– It is a secure digital key issued by a Certifying Authority that certifies the true identity of the signature holder. It is a digital equivalent of a handwritten signature.

E

E-commerce Operator

– Refers to businesses that function in an online market environment where other vendors can sell goods to customers over an online platform.

Electronic Commerce

– Refers to the supply of goods and/or services including digital products over an online platform or the Internet.

E-sign / Electronic Signature

-Refers to an electronic service provided over an online platform that allows a GST registered individual/Aadhar holder to digitally sign a document without the need for a physical handwritten signature. An e-signature can be obtained on the GST portal during the registration process.

E-Way Bill

– Is an electronic or digital bill that is required to be produced as a mandate to facilitate the movements of goods exceeding a value of Rs. 50,000.

Exempt Supply

– Refers to the supply of any goods and/or services that are not liable for any tax and includes such items that exempt from tax.

F

Forward Charge

– Refers to the tax liability, to be paid by the supplier of goods and/or services. This is, in turn, levied on the recipient of the goods and/or services and the same is remitted to the government.

G

Goods and Services Tax Network (GSTN)

– GSTN is a non-profit, public-private partnership company. The main purpose of it is to provide IT infrastructure and services to State and Central Governments, taxpayers and other stakeholders to facilitate the implementation of GST.

Goods

– A term encompassing all types of movable property, including any actionable claim, farm crops, grass, and any other items attached to a piece of land that shall be cut off before supply or under a specific contract of supply. It does not include securities and money.

GST Council

– Collectively refers to the council designated by the Govt. of India with the task to govern the GST, decide GST rules and ensure proper implementation of GST in the country.

GST Suvidha Provider (GSP)

– Refers to third-party agencies that help a taxpayer by making access to the GST portal more user-friendly and customer-centered.

GST Tax Invoice

-This is a tax document issued by a GST registered supplier of taxable goods and/ or services to the receiver on which GST has been levied.

GSTIN / Goods and Services Taxpayer Identification Number

– It is a unique 15-digit number generated after approval of the GST application by the GST officer, allocated to a registered taxpayer as per the GST law. As a rule, a taxpayer is required to register for the GST across all the states where they have a branch of business. A single taxpayer can have multiple GSTINs even though issued under the same PAN.

GSTR 1

-The GST return form used for providing details of sales undertaken. Using this form GST returns need to be filed by the 10th day of the succeeding month.

GSTR 2

– The GST return form for providing the details of purchases undertaken.

GSTR 3

– The GST return form used by a normal taxpayer for providing details of tax payable. The same can also be used for paying tax on the GST Portal.

GSTR 3B

– GST return form specially issued for taxpayers filing for GST returns late in the months of July and August. Returns must be filed using GSTR 3B within the 20th day of the succeeding month.

GSTR 4

– GST quarterly return form that is to be furnished by taxpayers opting for the composition scheme. Dealers that fall under the composition scheme are required to submit only one return using the GSTR 4. The due date for filing of quarterly returns is the 18th of the month after the end of the quarter.

GSTR 5

– GST return form for registered non-resident taxpayers. to file monthly GST returns. The last date for filing of monthly GST returns by non-resident taxpayers is the 20th day of the succeeding month.

GSTR 9

– GST returns form to be filed annually by all taxpayers registered under GST. It will have all information relating to sales and purchase of supplies undertaken in a financial year as a consolidation of all information provided under all other monthly/ quarterly returns including GSTR-1, GSTR- 2A and GSTR-3B.

GSTR 9A

– GST Annual return form to be filed by businesses falling under the composition scheme. This will include all the information the dealers have already provided in GSTR 4. This form needs to be filed on or before 31st August of every financial year.

H

Harmonized System Nomenclature (HSN) Code

– refers to an eight-digit uniform classification code under a system developed by the World Customs Organization used to classify or determine the quantum of taxable goods traded. It is a universally accepted coding system.

I

IGST

– Is the integrated tax levied by the Centre on the interstate supply of taxable goods and services as mentioned under the IGST Act. It is also applied to the import/ export of goods into and from India.

Input Service Distributor

– Is the office of the supplier of goods and/or services that receives all tax invoices issued for transaction of taxable goods. The office is responsible for issuing a prescribed document that further distributes the credit of CGST, SGST, UTGST and/or IGST paid for the said services.

Input Tax Credit

– is the credit of tax already paid on inputs (purchases).

Input Tax

– the central, State or integrated tax charged on any supply of goods or services or both.

Interstate Supply

– Refers to the supply of goods and/or services between two states.

Intrastate Supply

– Refers to the supply of goods and/or services within a state.

Inward Supply

– Refers to receipt of goods and/or services, either by purchase, acquisition, or any other means.

J

Job Work

– Refers to an individual undertaking process or treatment of goods belonging to another registered taxpayer.

M

Mixed Supply

– Refers to the supply of two or more types of supplies of goods and/or services done together for a single price other than composite supply.

N

Non-Resident Taxable Person

– Refers to an individual who undertakes transactions occasionally, involving the supply of goods and/or services and is neither a resident of India nor has a fixed place of business in India.

O

Output Tax

– Refers to the CGST/SGST liable to be paid on the taxable supply of goods and/or services by an individual or an agency representing him. It does not include tax payable on a reverse-charge basis.

Outward Supply

– Refers to the supply of goods and/or services, done through sale, transfer, rental, lease, or any other means during business.

P

Principal Place of Business

– Refers to the main location of business specified in the certificate of GST registration.

Principal Supply

– Refers to the supply of goods and/or services that form a significant part of a mixed supply.

Principal

– Refers to an individual or a business entity for whom an agent/ agency undertakes the business of supply and receipt of goods and/or services.

R

Recipient

– Refers to the receiver of supply of goods and/or services, whether there may or may not be a consideration.

Receipt Voucher

– Refers to a GST compliant voucher or casual bill issued as a proof of receipt of payment by a GST registered manufacturer/supplier after receipt of advance payment for a future supply of goods and/or services.

Refund Voucher

– It is a GST compliant receipt issued by the manufacturer/supplier as proof of return of advance payment upon cancellation of an order on which such a payment was made.

Removal

– Refers to goods dispatched for delivery by the supplier or his agent OR to the collection of the goods by the recipient or his agent.

Return

– refers to any GST return prescribed or required to be furnished.

Reverse Charge

– Refers to the tax liable on the recipient for the receipt of goods and/or services instead of on the supplier of such goods and/or services.

S

Services Accounting Code (SAC)

-It is a unique system of nomenclature that is used to classify services under GST. These codes are issued by the CBEC and each service has a unique SAC.

Services

– Refers to anything other than goods, money, and securities for which a separate consideration is charged.

SGST

– Refers to the GST levied by the States on the intrastate (within one state) transactions of taxable goods and services.

Supplier

– Refers to the person providing any taxable goods and/or services and includes an agent who represents the supplier in the supply of the same.

Supply

– Includes all forms of supply of goods and/or services including sale, transfer, barter, exchange, license, rental, etc. done against a consideration during the course of business. It also includes the import of services.

T

Taxable Person

– Refers to any individual registered under GST, who undertakes business at any place in any state of India.

U

UIN / Unique Identity Number

– It is a unique number used to denote any agency that is not liable for tax in India. It includes any wing of the United Nations, foreign consulates, embassies or organizations that are exempted either by the UN or by the Indian central or State government.

UTGST

– Refers to the GST levied by the Union Territory on transactions of taxable goods and services within the boundaries of the Union Territory.

Z

Zero-Rated Supply

– Refers to the supply of goods and/or services to a Special Economic Zone developer or a Special Economic Zone unit and includes export of goods and/or services.