Terms & Phrases about GST

The process of migration of 8 million taxpayers (expected) into GST from various platforms will be conducted with the assignment of a unique number to the taxpayers i.e. GST Identification Number (GSTIN). Most of the taxpayers among those 8 million are still unaware of the procedure and relevant GST terms and phrases.

PAN, India being the mandatory document for GST will be the base for generation of 15 digits GSTIN as the unique number will be PAN based and anyone not having PAN will be required to obtain PAN before applying for GSTIN.

At loanbaba, you will find all information about GST definitions.

Reverse charge

While in most of cases the supplier needs to pay taxes on the supply, in some cases, the receiver of the goods / services has the liability/ obligation to pay the taxes hence reversing the chargeability. This is termed as reverse charge. This concept is already there in service tax, however under new regime of Goods and Services Tax, it will be applicable new goods as well as services.

GST Rates

Specific products and services will come under different taxation slab. Depending on the slab decided the GST Rates, India will vary. You can find out more about GST tax slab rates, India here.

Mixed supply and Composite supply under GST

Being a new concept introduced under GST, this will cover all the supplies in a bundle, which are made together even if the supplies are not related to each other. However the concept of mixed supply is new in the system but composite supply is very similar to the bundled services which could be seen in Service tax laws.

Composite Supply

It is basically the supply which comprises of two or more goods or services where such goods/ services are bundled naturally and hence are supplied together under ordinary course of business. One of the items is principal supply and it is essential that the items cannot be supplied separately.

Mixed Supply

When a taxable person makes two or more than two individual supplies of goods/ services together for a single price, it is termed as mixed supply. The items under mixed supply are independent and can be supplied separately too.

Continuous Supply

When there is periodic supply of goods and services as well as the payments all along, it is termed as continuous supply. For example, supplying paints to public works department for an ongoing project which comprises of periodic requisition of goods and hence periodic invoices will be generated and cleared.

GST Compliance Rating

As per the model GST law, processing of refund claims under GST will be done on merit basis and merit will be generated on GST compliance rating of the taxpayer. It is also expected that the speed and amount of refund will also be based on the individual rating of the taxpayer. For example, an individual with rating 4.5 will be given 75% instant refund.