Important Terms in GST

 Important Terms in GST

1. GSTIN (Goods and Services Tax Identification Number) 2. CGST Collected by the Central Government on intra-state supply of goods/services. 3. SGST Collected by the State Government on intra-state transactions. 4. IGST Levied by the Central Government on inter-state supply and imports/exports. 5. Input Tax Credit (ITC) Credit of GST paid on purchases that can be set off against GST payable on sales. 6. Output GST GST charged by a business on the outward supply of goods or services. 7. Composition Scheme A simplified scheme for small taxpayers with turnover below a threshold to pay tax at a fixed rate without ITC. 8. HSN & SAC Codes HSN (Harmonized System of Nomenclature) for goods and SAC (Services Accounting Code) for services. 9. Reverse Charge Mechanism (RCM) Liability to pay tax is on the recipient of goods/services instead of the supplier under specific circumstances. 10. Aggregate Turnover Sum total of all taxable, exempt, export and inter-state supplies, calculated PAN-wise. 11. Registration under GST Mandatory for businesses exceeding prescribed turnover thresholds, or involved in inter-state supplies, e-commerce, or reverse charge transactions. 12. Place of Business (POB) The location from where a business operates, including branches, warehouses, or additional places as declared in GST registration. 13. Job Work Processing or working on goods belonging to another registered person. The principal can send inputs/capital goods without paying tax and receive them back after job work. 14. GSTR-1 Monthly or quarterly return showing details of all outward supplies (sales) made by the taxpayer. 15. GSTR-3B A monthly self-declaration summarizing sales, purchases, ITC, and tax liability. Actual payment of GST is made via this return. 16. GSTR-2B Auto-generated ITC statement showing eligible/ineligible ITC from the suppliers’ returns (static for each month). 17. GSTR-9 Annual summary return of all GST transactions filed during the year, mandatory for regular taxpayers. 18. GSTR-9C Reconciliation statement between audited financials and GSTR-9, certified by a CA/CMA (applicable above turnover threshold). 19. Exempt Supply Supplies that attract nil rate of tax or are wholly exempt under Section 11 of CGST Act or Section 6 of IGST Act. 20. Zero-Rated Supply Exports and supplies to SEZs. Though taxable at 0%, input credit is allowed and refund can be claimed. 21. Non-GST Supply Supplies not covered under GST law, e.g., petrol, diesel, liquor for human consumption. 22. E-Invoicing Mandated for businesses exceeding the specified turnover (e.g., Rs. 5 Cr). Invoices are electronically uploaded to the Invoice Registration Portal (IRP) to generate IRN and QR code. 23. E-Way Bill An electronic document required for movement of goods valued over Rs. 50,000. It contains details of consignor, consignee, goods, and transporter. Mandatory for inter-state and some intra-state movements