Glossary
GST terms, explained simply
The words and forms you keep running into — in plain English.
Aggregate Turnover
The all-India turnover on the same PAN, including taxable, exempt, export and inter-state supplies, used to test registration thresholds.
ASMT-10
A scrutiny notice asking a taxpayer to explain discrepancies found in a filed return.
CGST / SGST / IGST
Central GST and State GST apply to intra-state supplies; Integrated GST applies to inter-state supplies and imports.
Composition Scheme
A simplified scheme for eligible small taxpayers to pay GST at a low flat rate on turnover with quarterly filing, but without collecting GST separately or claiming ITC.
DRC-01
A show-cause notice proposing a GST demand, issued before an order is passed.
E-Invoicing
The system of reporting B2B invoices to the Invoice Registration Portal to obtain an IRN and QR code, mandatory above a turnover threshold.
E-Way Bill
An electronic document required for the movement of goods above a value threshold, generated on the E-Way Bill portal.
GSTIN
The 15-digit Goods and Services Tax Identification Number assigned on registration. It encodes your state code and PAN and is your unique GST identity.
GSTR-1
The return reporting the details of your outward supplies (sales invoices), filed monthly or quarterly.
GSTR-10
The final return filed after cancellation of registration. It carries its own late fee if missed.
GSTR-2B
An auto-drafted, static statement of input tax credit available to you based on your suppliers’ filings. It is the reference point for what credit you can safely claim.
GSTR-3B
The summary return where you declare total sales, claim input tax credit and pay net GST for the period.
GSTR-9
The annual return summarising a financial year’s supplies, tax and input tax credit, filed by taxpayers above the prescribed threshold.
GSTR-9C
A reconciliation statement filed by larger taxpayers, reconciling the annual return with audited financial statements.
HSN Code
Harmonised System of Nomenclature code used to classify goods for GST rate and reporting purposes.
Input Tax Credit (ITC)
The credit for GST paid on business purchases, which can be set off against GST collected on sales so you pay only the difference.
IRN
Invoice Reference Number — a unique number generated when an invoice is reported under e-invoicing.
LUT
Letter of Undertaking — filed by exporters to supply goods or services without paying IGST upfront. Valid for one financial year.
Nil Return
A return filed for a period with no transactions. It is still mandatory, and skipping it attracts a late fee.
QRMP
Quarterly Return, Monthly Payment — a scheme letting smaller taxpayers file GSTR-1 and GSTR-3B quarterly while paying tax monthly.
REG-01
The GST registration application form.
REG-03 / REG-04
REG-03 is a notice seeking clarification on a registration application; REG-04 is the reply to it.
Reverse Charge (RCM)
A mechanism where the recipient, not the supplier, is liable to pay GST on certain notified supplies.
SAC Code
Services Accounting Code used to classify services for GST purposes.
TCS (E-commerce)
Tax Collected at Source — a small percentage collected by e-commerce operators on a seller’s supplies and deposited against their GSTIN.
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