GST Return Terms and Meanings: Complete GSTR Glossary

GSTR-1 is the return that reports all outward supplies (sales), invoice by invoice for B2B and summarised for B2C. It is filed monthly, or quarterly under the QRMP scheme, and feeds the buyer's GSTR-2B.

GSTR-3B is a summary return where you declare total outward supply, input tax credit, and net tax, and actually pay the GST. It must reconcile with GSTR-1 and GSTR-2B.

GSTR-2A is a dynamic statement that keeps updating as suppliers file. GSTR-2B is a static statement generated once a month and is the basis for claiming input tax credit. Reconcile purchases against 2B.

ITC is the credit for GST paid on business purchases, set off against GST on your sales. It can be claimed only if the invoice appears in your GSTR-2B, the supplier has paid, you have received the goods or services, and you claim within the time limit.

Under RCM, the recipient pays GST instead of the supplier, for notified goods and services and certain purchases from unregistered suppliers. The recipient must self-invoice and pay the tax, then claim ITC if eligible.

HSN (Harmonized System of Nomenclature) is the classification code for goods. SAC (Services Accounting Code) is the equivalent for services. Both must be quoted correctly on invoices and returns.

Zero-rated supplies (exports and SEZ supplies) are taxed at 0% but allow a refund of input tax credit, either via an LUT or by paying tax and claiming a refund. Exempt supplies carry no tax and no ITC refund.

A composite supply is naturally bundled with one principal supply and is taxed at the principal item's rate. A mixed supply is independent items sold together for a single price and is taxed at the highest applicable rate.

An e-way bill is an electronic document required for the movement of goods above a notified value, generated on the e-way bill portal with details of the consignment, transporter, and vehicle.

An e-invoice is an invoice reported to the Invoice Registration Portal, which assigns a unique Invoice Reference Number (IRN) and a QR code. E-invoicing is mandatory for businesses above Rs 5 crore turnover.

QRMP (Quarterly Return, Monthly Payment) lets taxpayers with turnover up to Rs 5 crore file GSTR-1 and GSTR-3B quarterly while paying tax monthly through PMT-06 in the first two months of the quarter.

An LUT (Letter of Undertaking) lets exporters make zero-rated supplies without paying IGST upfront. It is filed annually on the GST portal and must be renewed each financial year.

CMP-08 is the quarterly statement-cum-challan through which composition-scheme taxpayers pay their tax. The annual return for composition dealers is GSTR-4.

GSTR-9 is the annual GST return summarising the year's supplies, ITC, and tax. GSTR-9C is a reconciliation statement between the annual return and the audited accounts, required above a higher turnover threshold.

B2B supplies are made to registered businesses and are reported invoice by invoice in GSTR-1 so the buyer can claim ITC. B2C supplies are made to unregistered consumers and are reported in summary.

A debit note is issued when the taxable value or tax of an earlier invoice increases. A credit note is issued when it decreases, for example on sales returns or post-sale discounts, and must be reported within the time limit.

A Bill of Supply is issued instead of a tax invoice when no GST is charged, such as by composition dealers or for exempt supplies.

DRC-03 is the form for making a voluntary GST payment, used to pay tax shortfalls, interest, or amounts demanded, with the correct cause of payment selected.

ASMT-10 is a scrutiny notice issued when the department finds discrepancies in your returns. You must respond within the time allowed, usually via ASMT-11. See our ASMT-10 response guide.

Tax Garden, based in Kondapur, Hyderabad, files GSTR-1 and GSTR-3B, reconciles ITC against GSTR-2B, and manages e-invoicing and annual returns for businesses across India. See our pricing page.