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Glossary
| Term (EN) | Definition | Exam Relevance |
|---|---|---|
| GST | Goods and Services Tax — comprehensive, multi-stage, destination-based indirect tax; implemented 1 July 2017 | Core definition |
| 101st Amendment | Constitutional amendment (2016) that enabled GST — inserted Articles 246A, 269A, 279A | Constitutional basis |
| Article 246A | Concurrent jurisdiction of Parliament and States to legislate on GST | Key constitutional article |
| Article 279A | Provides for the GST Council | Key constitutional article |
| CGST | Central Goods and Services Tax — Centre's portion on intra-state supply | Dual GST component 1 |
| SGST | State Goods and Services Tax — State's portion on intra-state supply | Dual GST component 2 |
| IGST | Integrated GST — on inter-state supply; Centre collects and distributes to consuming state | Dual GST component 3 |
| UTGST | Union Territory GST — for UTs without legislature (Chandigarh, D&NH, DD) | Dual GST component 4 |
| Cascading Effect | Tax on tax — old system problem where VAT was levied on price including Excise Duty | ITC solves this |
| Input Tax Credit (ITC) | Deduction of GST paid on inputs from GST payable on outputs — eliminates cascading effect | Most important GST mechanism |
| GST Council | Constitutional body (Art. 279A) — Union FM chairs, State FMs members; 3/4th weighted majority | Federal body |
| GSTN | GST Network — IT backbone for GST; Centre 50%, States 50% (post-2019) | Technology backbone |
| GSTIN | 15-digit PAN-based unique GST registration number for every registered taxpayer | Registration identifier |
| Composition Scheme | Flat-rate GST for small businesses ≤₹1.5 crore — no ITC, no inter-state supply | Small business provision |
| GSTR-1 | Return for outward supplies (sales) — monthly/quarterly | Key GST return |
| GSTR-3B | Monthly summary return — ITC claimed, tax paid | Key GST return |
| GSTR-9 | Annual GST return — summary of 12 monthly returns | Annual compliance |
| E-way Bill | Electronic waybill for transporting goods > ₹50,000 — generated on GSTN portal | Anti-evasion tool |
| Destination-based tax | Tax accrues to the state where goods/services are consumed — benefits consuming states | Rajasthan relevance |
| Zero-rated supply | Exports — 0% GST but ITC refund available; different from exempt supply (no ITC) | Export mechanism |
| Reverse Charge (RCM) | Recipient pays GST instead of supplier — for imports, GTA, unregistered supply | Special provision |
| Cess | Additional levy beyond 28% on sin goods — revenue to GST Compensation Fund | Sin goods taxation |
| GST Compensation Fund | Fund to compensate states for revenue loss during 5-year GST transition (ended June 2022) | Fiscal federalism |
| E-invoicing | Mandatory real-time invoice reporting to GSTN for businesses with turnover > ₹5 crore | Anti-fraud mechanism |
| April 2024 Collection | ₹2.10 lakh crore — all-time highest monthly GST collection | Latest statistics |