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Understanding GST Nomenclature and Abbreviations

General Full-Forms:

  • CGST – Central Goods and Services Tax.
  • SGST – State Goods and Services Tax.
  • IGST – Integrated Goods and Services Tax.
  • UTGST – Union Territory Goods & Services Act.
  • MSP – Managed Service Provider.
  • GSP – GST Suvidha Provider.
  • ITC – Input Tax Credit.
  • TDS – Tax Deducted at Source.
  • TCS – Tax Collected at Source.
  • TRP – Tax Return Preparer.
  • UIN – Unique Identification Number.
  • ITC Ledger – Input Tax Credit Ledger.
  • NIU – National Information Utility.
  • RCM – Reverse Charge Mechanism.
  • ISD – Input Service Distributor.
  • HSN Code – Harmonized System of Nomenclature Code.
  • B2B – Business to Business.
  • B2C – Business to Customer.
  • ARN – Application Reference Number.
  • CBCE – Central Board of Custom & Excise.
  • CBDT- Central Board of Direct Tax.
  • CBS – Core Banking Sector.
  • CBT- Computer Based Training.
  • CENVAT – Central Value Added Tax.
  • CIN – Challan Identification Number.
  • CPIN – Common Portal Identification Number.
  • DSC – Digital Signature Code.
  • EBN – E-way Bill Number.
  • E-FPB – Electronic Focal Point Branch.
  • FC – Facility Centre.
  • Form RFP – Refund Form.
  • GST REG – GST Registration.
  • GSTIN – Goods & Services Tax Identification Number.
  • GSTN – Goods & Services Tax Network.
  • GSTR- Goods & Services Tax Return.

Q.) What is meant by RC?

A.) RC- Reverse Charge

It means the liability to pay tax is on the recipient of supply of goods and services instead of the supplier of such goods or services in respect of notified categories of supply.

Q.) Who is an ISD?

A.) ISD- Input Service Distributor

ISD stands for Input Service Distributor and has been defined under Section 2(61) of the CGST/SGST Act. It is basically an office meant to receive tax invoices towards receipt of input services and further distribute the credit to supplier units (having the same PAN) proportionately.

Q.) What is IGST?

A.) IGST- Integrated Goods and Services Tax

“Integrated Goods and Services Tax” (IGST) means tax levied under the IGST Act on the supply of any goods and/ or services in the course of inter-State trade or commerce.

Q.) What are inter-state supplies?

A.) A supply of goods and/or services in the course of inter-State trade or commerce means any supply where the location of the supplier and the place of supply are in different States, two different union territory or in a state and union territory Further import of goods and services, supplies to SEZ units or developer, or any supply that is not an intra state supply. (Section 7 of the IGST Act).

Q.) What is GSTN?

A.) GSTN- Goods and Services Tax Network

Goods and Services Tax Network (GSTN) is a not-for-profit, Non-government Company promoted jointly by the Central and State Governments, which will provide shared IT infrastructure and services to both central and state governments including tax payers and other stakeholders. The Frontend services of Registration, Returns, Payments, etc. to all taxpayers will be provided by GSTN. It will be the interface between the government and the taxpayers.

Q.) What are E-Ledgers?

A.) Electronic Ledgers or E-Ledgers are statements of cash and input tax credit in respect of each registered taxpayer. In addition, each taxpayer shall also have an electronic tax liability register. Once a taxpayer is registered on Common Portal (GSTN), two e-ledgers (Cash &Input Tax Credit ledger) and an electronic tax liability register will be automatically opened and displayed on his dash board at all times.

Q.) What is a Cash Ledger?

A.) The cash ledger will reflect all deposits made in cash, and TDS/TCS made on account of the taxpayer. The information will be reflected on real time basis. This ledger can be used for making any payment on account of GST.

Q.) What is an ITC Ledger?

A.) Input Tax Credit as self-assessed in monthly returns will be reflected in the ITC Ledger. The credit in this ledger can be used to make payment of TAX ONLY and no other amounts such as interest, penalty, fees etc.

Q.) What is a CPIN?

A.) CPIN- Common Portal Identification Number

CPIN stands for Common Portal Identification Number (CPIN) given at the time of generation of Challan. It is a 14-digit unique number to identify the Challan. As stated above, the CPIN remains valid for a period of 15 days.

Q.) What is an E-FPB?

A.) E-FPB – Electronic Focal Point Branch

E-FPB stands for Electronic Focal Point Branch. These are branches of authorized banks which are authorized to 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 EFPB. For NEFT/RTGS Transactions, RBI will act as E-FPB.

Q.) What is TDS?

A.) TDS – Tax Deducted at Source

TDS stands for Tax Deducted at Source (TDS). As per section 51, this provision is meant for Government and Government undertakings and other notified entities making contractual payments where the value of such supply under a contract exceeds Rs. 2.5 Lakh to suppliers. While making any payments under such contracts, the concerned Government/authority shall deduct 2% of the total payment made (1% under each Act and 2% in case of IGST) and remit it into the appropriate GST account.

Q.) What is IT?

A. IT- Input Tax

Input tax means the central tax (CGST), State tax (SGST), integrated tax (IGST) or Union territory tax (UTGST) charged on supply of goods or services or both made to a registered person. It also includes tax paid on reverse charge basis and integrated tax goods and services tax charged on import of goods. It does not include tax paid under composition levy

Q.) What is TCS?

A.) TCS – Tax Collected at Source

This provision is applicable only for E-Commerce Operator under section 52 of CGST/SGST Act. Every E- Commerce Operator, not being an agent, needs to withhold an amount calculated at the rate not exceeding one percent of the “net value of taxable supplies” made through it where the consideration with respect to such supplies is to be collected by the operator. Such withheld amount is to be deposited by such E-Commerce Operator to the appropriate GST account by the 10th of the next month. The amount deposited as TCS will be reflected in the electronic cash ledger of the supplier.

Q.) What is GSP (GST Suvidha Provider)?

A.) GST System will provide a GST portal for taxpayers to access the GST System and do all the GST compliance activities. But there will be wide variety of tax payers (SME, Large Enterprise, Micro Enterprise etc.) which may require different kind of facilities like converting their purchase/sales register data in GST compliant format, Integration of their Accounting Packages/ERP with GST System etc., various kind of dashboards to view Matched/Mismatched ITC claims, Tax liability, Filing status etc. As invoice level filing is required, so large organizations may require an automated way to interact with GST system as it may be practically impossible for them to upload large number of invoices through a web portal. So an eco- system is required, which can help such taxpayers in GST compliance.

As Tax payer convenience will be the key to success of GST regime, this eco-system will also provide Tax payer options of using third party applications, which can provide different kind of interfaces on desktop/mobile for them to be GST compliant.
All above reasons require an eco-system of third party service providers, who have access to GST System and capability to develop such applications. These service providers have been given a generic name, GST Suvidha Providers or GSP.

Q.) What is Electronic Commerce?

A.) Electronic Commerce has been defined to mean the supply o f goods or services or both, including digital products over digital or electronic network.

Q.) Who is an e-commerce operator?

A.) Electronic Commerce Operator has been defined to mean any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.

Q.) What is job work?

A.) Job work means undertaking any treatment or process by a person on goods belonging to another registered taxable person. The person who is treating or processing the goods belonging to other person is called ‘job worker’ and the person to whom the goods belongs is called ‘principal’. This definition is much wider than the one given in Notification No. 214/86 – CE dated 23rd March, 1986. In the said notification, job work has been defined in such a manner so as to ensure that the activity of job work must amount to manufacture. Thus the definition of job work itself reflects the change in basic scheme of taxation relating to job work in the proposed GST regime.

Q.) What is the meaning of the term “Inspection”?

A.) ‘Inspection’ is a new provision under the CGST/SGST Act. It is a softer provision than search to enable officers to access any place of business of a taxable person and also any place of business of a person engaged in transporting goods or who is an owner or an operator of a warehouse or godown.

Q.) What is refund?

A.) Refund has been discussed in section 54 of the CGST/SGST Act. “Refund” includes (a) any balance amount in the electronic cash ledger so claimed in the returns, (b) any unutilized input tax credit in respect of (i) zero rated supplies made without payment of tax or, (ii) where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), (c) tax paid by specialized agency of United Nations or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries on any inward supply

Q. What is the meaning of Advance Ruling?

A.) As per section 95 of CGST/SGST Law and section 12 of UTGST law, ‘advance ruling’ means a decision provided by the authority or the Appellate Authority to an applicant on matters or on questions specified in section 97(2) or 100(1) of CGST/SGST Act as the case may be, in relation to the supply of goods and/or services proposed to be undertaken or being undertaken by the applicant.

Q.) What is the meaning of the term “Search”?

A.) As per law dictionary and as noted in different judicial pronouncements, the term ‘search’, in simple language, denotes an action of a government machinery to go, look through or examine carefully a place, area, person, object etc. in order to find something concealed or for the purpose of discovering evidence of a crime. The search of a person or vehicle or premises etc. can only be done under proper and valid authority of law.

Q.) What is meant by ‘reasons to believe’?

A.) ‘Reason to believe’ is to have knowledge of facts which, although not amounting to direct knowledge, would cause a reasonable person, knowing the same facts, to reasonably conclude the same thing. As per Section 26 of the IPC, 1860, “A person is said to have ‘reason to believe’ a thing, if he has sufficient cause to believe that thing but not otherwise.” ‘Reason to believe’ contemplates an objective determination based on intelligent care and evaluation as distinguished from a purely subjective consideration. It has to be and must be that of an honest and reasonable person based on relevant material and circumstances.

Q.) What is a Search Warrant and what are its contents?

A.) The written authority to conduct search is generally called search warrant. The competent authority to issue search warrant is an officer of the rank of Joint Commissioner or above. A search warrant must indicate the existence of a reasonable belief leading to the search. Search Warrant should contain the following details:

  • i. The violation under the Act,
  • ii. The premise has to be searched,
  • iii. The name and designation of the person authorized for search,
  • iv. The name of the issuing officer with full designation along with his round seal,
  • v. Date and place of issue,
  • vi. Serial number of the search warrant
  • vii. Period of validity i.e. a day or two days

Q.) What is meant by the term ‘Seizure’?

A.) The term ‘seizure’ has not been specifically defined in the GST Law. In Law Lexicon Dictionary, ‘seizure’ is defined as the act of taking possession of property by an officer under legal process. It generally implies taking possession forcibly contrary to the wishes of the owner of the property or who has the possession and who was unwilling to part with the possession.

To know more about GST Return Filing kindly visit: www.encomply.com

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Content Courtesy:

Krishna Sriteja.D

GST Content Specialist | Tax Technology Enthusiast

dksriteja@udyogsoftware.com

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