Topic

GST basics

The building blocks of GST: registration, HSN and SAC codes, place of supply and the schemes a business can choose.

Glossary

The terms you will meet.

GST basics Anti-Profiteering Anti-profiteering under GST requires businesses to pass on the benefit of tax rate reductions or increased ITC to consumers through proportionate price reductions. Also called anti-profiteering provisions, section 171 of the CGST Act Trade and foreign exchange Central Excise A tax on the manufacture of goods within India, levied by the central government and largely subsumed by GST in 2017. Also called central excise duty GST basics Composition Scheme The Composition Scheme is a simplified GST compliance option for small taxpayers with turnover up to Rs. 1.5 crore, allowing them to pay tax at a fixed rate without maintaining detailed invoicing records. Also called GST composition scheme, composition levy, section 10 composition Accounts receivable Credit Note A credit note is a document issued by a seller to a buyer reducing the value of a previously issued invoice, typically due to returns, pricing corrections, or deficiency in services. Also called credit memo, credit memorandum Accounts payable Debit Note A debit note is a document issued by a buyer to a seller indicating a reduction in the amount payable, typically due to goods returned, pricing errors, or defective supplies. Also called debit memo, debit memorandum E-invoicing E-Way Bill A mandatory electronic document required for the movement of goods valued at more than Rs. 50,000 under India's GST regime. Also called eway bill, electronic way bill, EWB GST basics GST (Goods and Services Tax) India's unified indirect tax that replaced multiple central and state levies, creating a single national market for goods and services. Also called Goods & Services Tax GST basics GST Council The GST Council is India's constitutional body comprising Union and State finance ministers that makes recommendations on GST rates, rules, exemptions, and administrative procedures. Also called Goods and Services Tax Council GST basics GST Registration GST registration is the process by which a business obtains a unique GSTIN from the GST portal, making it a registered taxable person under India's Goods and Services Tax law. Also called GSTIN registration, GST enrolment, Form GST REG-01 GST basics HSN Code (Harmonized System of Nomenclature) An internationally standardized numerical code used to classify goods for taxation and trade purposes under India's GST system. Also called HSN, harmonised system code, HS code GST basics Place of Supply Place of Supply is the GST concept that determines the location where a supply is deemed to occur, which in turn decides whether IGST, CGST/SGST, or UTGST applies to the transaction. Also called place of supply rules, place of supply under GST Input tax credit Reverse Charge Mechanism (RCM) A GST provision where the recipient of goods or services is liable to pay the tax instead of the supplier. Also called reverse charge, reverse charge under GST GST basics SAC Code (Service Accounting Code) A classification system used under GST to categorize and identify different types of services for taxation purposes. Also called SAC, services accounting code