Glossary
The GST and tax terms used in the app and in these pages, in plain words.
#Terms A to Z
| Term | Meaning |
|---|---|
| AATO | Annual aggregate turnover: your total sales in a year across all your GSTINs on one PAN. |
| B2B / B2C | Sales to a GST-registered business / to someone unregistered, such as a consumer. |
| B2C Large | An inter-state sale to an unregistered buyer above ₹1 lakh (₹2.5 lakh before 1 August 2024), reported invoice by invoice in GSTR-1. |
| Bill of supply | A bill without GST, for exempt goods or services, or from a composition dealer. |
| CGST, SGST, UTGST, IGST | Central, State and Union Territory GST are charged together on a sale within one state or territory. Integrated GST is charged on a sale between states, or to an SEZ or abroad. |
| Cess | Compensation cess, an extra charge on some goods such as tobacco, cars and coal. |
| Composition scheme | A simpler scheme for small businesses, who pay tax at a flat rate and cannot charge GST to customers. |
| Credit note | A document that reduces a sale already invoiced, for a return, discount or correction. |
| Delivery challan | A document for moving goods without a sale. |
| E-way bill | A permit generated on the NIC portal for moving goods, generally worth more than ₹50,000. |
| GSTIN | Your 15-character GST number. The first two digits are the state code, the next ten are the PAN, and the last is a check character. |
| GSTR-1 | The return listing your sales, filed monthly or quarterly. |
| GSTR-2B | The portal's statement of what your suppliers reported selling to you. It sets how much credit you can usually claim. |
| GSTR-3B | The summary return where you pay the tax due after credit. |
| HSN / SAC | Codes that classify goods (HSN) and services (SAC). They decide the GST rate and go into your returns. |
| ITC | Input tax credit: the GST you paid on purchases, which you subtract from the GST you owe. |
| LUT | Letter of Undertaking, which lets you export without paying IGST. |
| NIL return | A return filed for a period with no activity. Still compulsory. |
| Place of supply | Where the supply is treated as happening. It decides CGST and SGST versus IGST. |
| Proforma invoice | A quote or estimate. Not a tax invoice, and not a sale. |
| QRMP | Quarterly return, monthly payment: a scheme letting small businesses file GSTR-1 and 3B quarterly. |
| Reverse charge | When the buyer, not the seller, pays the GST to the government. |
| SEZ | Special Economic Zone. Supplies to a unit there are charged IGST, or none under LUT. |
| TCS | Tax collected at source: tax the seller collects from the buyer and deposits. |
| TDS | Tax deducted at source: tax the buyer deducts from the payment and deposits for the seller. |
| UQC | Unit quantity code, the standard unit names used in GST returns, such as NOS, KGS or OTH. |