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Aggregate Turnover
Aggregate Turnover is the aggregate value of all sales, supply and export of goods and/or services (both taxable and non-taxable) by a person (with a PAN) excluding taxes.
Application Service Providers (ASPs) are like GST Suvidha Providers (GSPs). ASPs support and held taxpayers with compliance difficulties as they work as a liaison between the taxpayers and the GSPs
B to B
A sale or purchase transaction carried out between two or more registered persons (registered business men) is termed as a B to B or Business to Business transaction
B to C
A sale or purchase transaction carried out between one registered person and one or more unregistered person/s is termed as a B to B or Business to Business transaction.
Cash Ledger
A cash ledger is one of the subsidiary ledgers that are maintained by a company alongside the general ledger. A cash ledger is a record of all transactions associated to cash accounts that are operated by an organization and its branches.
Casual Taxable Person
A Casual Taxable person is someone who doesn’t have a fixed place of business but occasionally supplies goods and/or services as a principal or agent, in a taxable territory.
Cess is a tax on tax, levied by the government for a specific purpose. Under the GST regime, an additional cess will levied upon certain demerit goods for the first five years post GST roll out. This is in order to compensate for any loss of revenue the States may face due to the reduction of tax collection.
CGST is Central Goods and Service Tax. This tax is levied on intra-state (within the state) transactions. Taxes collected under Central Goods and Service tax will be the revenue for Central Government.
CIN stands for 'Corporate Identification Number' which is written on bank statements. Each Indian company (Listed or Unlisted) has a unique 21 Digit CIN. Once this number is filled, company details are automatically filled in E-Forms issued by MCA by using pre-fill function.
Compensation Act
Compensation scheme is offered by the Central Government to the State Government for losses suffered by them due to GST. Central Government plans to provide compensation to the State Governments for 5 years.
Composite Dealer
A composition dealer is one registered under the Composition Scheme. Composition Scheme in GST allows taxpayers to pay taxes at lower rates and also to file returns on a quarterly basis rather than monthly.
Composite supply
Composite supply means a supply consisting of two or more goods and/or services, which are naturally bundled and provided together, one being a principal supply.
Composition Scheme
Businesses dealing only in goods can only opt for Composition Scheme with annual turnover below 75 lakhs. A person registered under composition scheme will pay tax at rate not more than 2% for manufacture, 5% for restaurant sector & 1% for traders (CGST & SGST).
It is a 14 digit unique number to identify the challan. As stated above, the CPIN remains valid for a period of 15 days.
With respects to tax, credit is ITC as defined above
Duty levied on any imported article which is equal to additional duty representing such portion of the excise duty leviable on such raw material, components and ingredients.
Deemed Exports
According to section 8.1, chapter 8 of foreign trade policy 2015-2020, these are transactions that are treated as exports even though the goods aren’t leaving the country yet. You may be supplying goods to Export Oriented Units, software or hardware technology parks, or government-funded projects, and getting paid in either INR or free foreign exchange (equivalent of INR in the currency of the customer for the invoice date).
Demerit Goods
A good or service whose consumption is considered unhealthy, degrading, or otherwise socially undesirable due to the perceived negative effects on the consumers themselves.
DSC or Digital Signature Certificate is an electronic document or key which is digitally encrypted document. It is issued by a certifying authority and contains the personal details and credentials of an individual or a designated signatory of a company. Under GST, while filing returns this key is used to validate and establish the credentials of a taxpayer.
E-Commerce Operator
Under the GST, E-Commerce Operator refers to businesses that offer an online platform which is a virtual marketplace where other vendors can sell goods to customers. E.g.: Flipkart, Amazon, etc.
E-FPB stands for Electronic Focal Point Branch. These are branches of authorized banks who can collect payment of GST. Each authorized bank will nominate only one branch as its E-FPB for pan India Transactions. The E-FPB will have to open accounts under each major head for all governments. Total 38 accounts (one each for CGST, IGST and one each for SGST for each State/UT Govt.) will have to be opened. Any amount received by such E-FPB towards GST will be credited to the appropriate account held by such E-FPB. For NEFT/RTGS Transactions, RBI will act as E-FPB.
E-sign or Electronic Signature is an online electronic service which allows a GST registered taxpayer/Aadhar holder to digitally sign a document. This can be configured inside the GST portal during the registration process.
Duty imposed on goods manufactured in India.
GST Compliance Rating
GST Compliance Rating is a performance rating that is given to all registered taxpayers which shows how compliant a supplier will be with respect to GST provisions. The taxpayers will be rated on a scale of 1 to 10 where 10 is the most compliant and 1 is the least compliant. Based on this, buyers can choose the sellers to conduct business with.
GST Suvidha Provider (GSP)
GSP refers to third-party applications that help a taxable person to comply with the provisions of the GST law through its portal. Goods and Service Tax Network (GSTN) will receive the returns filed by companies through GST Suvidha Provider.
GSTIN stands for Goods and Services identification number. Taxpayers migrated into GST will be assigned a unique GSTIN. Each taxpayer is assigned a state-wise PAN-based 15-digit GSTIN.
GSTN stands for the Goods and Services Tax Network. It is a non-profit, non-government private limited company that will provide IT infrastructure and services to the Central and State Governments, tax payers and other stakeholders for implementation of the Goods and Services Tax (GST). The GSTN is the IT backbone shared by the Central and State governments which acts an interface between the taxpayers and the government.
The Harmonized System of Nomenclature (HSN) is an internationally accepted method of naming, classifying and identifying products. Each identified by a 2-8 digit code. It depends on your aggregate turnover - 1.5 crores (2 digits), 5 crores (4 digits) or more and sourcing method – local (2-4 digits) or imports (8 digits)}, arranged in a legal and logical structure and governed by specific rules.
IGST is Integrated Goods and Service Tax. This tax is levied on inter-state (between 2 states) transactions. Revenue collected from IGST will be divided between Central Government and State Government as per the rates specified by the government.
Invoice Reference Number
The IRN or invoice reference number will be valid for 30 days from the date of uploading.
ISD stands for Input Service Distributors. An Input Service Distributor is an intermediary or an office which manages the business of a manufacturer or producer of final products or output service provider (e.g.: The corporate office of a Pizza chain). ISDs receive vendor bills on behalf of their branches and issue invoices to the manufacturer/branches in-order to distribute the Input Tax Credits.
Input tax credit is the credit received available to be set-off against paying output taxes. In simple terms, ITC is the refund on the tax paid by a person at the time of purchase. ITC can be availed at the time of selling the purchased item to a customer.
ITC Ledger
An Input Tax Credit ledger (ITC ledger) is a type of a secondary ledger maintained by a company that keeps track of the input taxes under the different components of GST (CGST, SGST, and IGST) and the input tax credits received by the company under these GST components.
Mega Exemption List
The services mentioned under negative list are non-taxable services, which means they are out of coverage of service tax. 17 services have been specified and any change in negative list can be done only through the amendment in the Finance Act, 1994.
Mixed Supply
Mixed Supply refers to two or more individual supplies of goods and/or services made together by a taxable person for a single price where such supply does not form a composite supply.
Negative List
The services mentioned under negative list are non-taxable services, which means they are out of coverage of service tax. 17 services have been specified. Any change in negative list can be done only through the amendment in the Finance Act, 1994.
Non-GST Supplies
Supplies those which are outside the purview of GST and may attract other taxes like state VAT are termed as Non-GST Supplies.
Non-Resident Taxable Person
A Non-Resident taxable person is someone residing outside India and making a taxable supply in India. He/she doesn’t have a fixed place of business but supplies goods and/or services as a principal or agent in a taxable territory.
Place of Supply
Place of Supply refers to the location of the buyer of goods and/or services. Identifying the place of supply is essential. The tax to be paid (CGST and SGST or IGST) depends on where the goods/services are supplied.
Registered Person
Anyone who is registered or is liable to be registered for GST under the Goods and Services Tax Act 1985. Registered persons must charge and collect GST, file returns, and account for GST to Inland Revenue.
Reverse Charge Mechanism
Under this, the recipient pays the tax on the purchase of any goods or services. As per GST provisions, each taxpayer can take the input tax credit. But in order to avail the credit of tax paid, he needs to pay the taxes first to claim the credit on all those purchases.
The SAC or the Services Accounting Code is a method of nomenclature that will be used to identify, classify and define services under the GST.
Service Tax
Service tax is a tax levied by the government on  service providers on provision of services.
SGST is State Goods and Service Tax. This tax is levied on intra-state (within the state) transactions. Taxes collected under SGST will be the revenue for State Government
‘Supply’ includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. Schedule I specified the supply.
TCS or Tax Collected at Source is income tax collected by seller in India from payer on sale of certain items.
Tax Deducted at Source is a method of collecting income tax. An organization/authorized person deducts tax on services they hire. They pay this tax on behalf of those service providers (who will in turn get credit on income tax). For tax deducted at source, the tax has to be recorded and tracked under the GSTR-7 (this return has to be filed by you monthly).
TRN stands for Temporary Reference Number. You can login using the TRN. After clicking on the REGISTER NOW link on the website, you can opt for the TRN option and enter the number. You will get a One-Time Password (OTP). Proceed after entering the number. You can check the status of your application under the Status column.
An UIN or Unique Identity Number is an ID that used to identify specialized agencies who are non-taxable in India. These agencies can be bodies of United Nations, consulates, foreign embassies or organizations that are exempted from taxation either by the UN or by our government(s).
UTGST is Union Territory Goods and Service Tax. This tax is chargeable on transactions between same union territories.
VAT is a tax on the value added to the commodity at each stage in production and distribution chain. Under VAT, tax is not levied on the portion of tax paid at the earlier stage. VAT is levied only on the value added. This is because the credit of tax paid earlier is allowed to be set off against the tax payable.
Zero Rated Products
Zero rated products are the products that are taxable, but the applicable rate of tax is NIL.