CA Final Paper 5: IDT key terms

Any form of transfer such as sale, exchange, barter, lease, licence, rental or disposal made for consideration in the course or furtherance of business, including specified schedules without consideration.

A supply of two or more goods or services naturally bundled and supplied together, one being principal and the others ancillary, taxed at the principal supply's rate.

Two or more individual supplies made together for a single price where they are not naturally bundled; the combination is taxed at the highest rate among its constituents.

The supply that constitutes the predominant element of a composite supply and gives the bundle its essential character, determining the applicable rate of tax.

Activities treated as supply even without consideration, such as permanent transfer of business assets, supplies between related persons in business, and principal-agent transactions.

Persons connected through family, business relationships such as common ownership or management, employer-employee links, or where one controls the other's business decisions.

A system where the recipient of a notified supply of goods or services, rather than the supplier, is liable to pay tax and discharge compliance obligations.

The statutory location that determines which state or country a supply belongs to, deciding whether the transaction is intra-state or inter-state and which government collects tax.

The point at which liability to pay tax arises, generally the earlier of invoice date or payment date for goods, and invoice date, payment date or completion for services.

The transaction value actually paid or payable for a supply between unrelated parties, where price is the sole consideration, subject to inclusion and exclusion rules.

The price actually paid or payable for goods or services supplied, accepted as value only when supplier and recipient are unrelated and price is the sole consideration.

A supply where the person billed and the person receiving delivery differ, requiring special place-of-supply rules and specific documentation for movement of goods.

A supply attracting nil rate of tax or wholly exempt under a notification, including non-taxable supplies, and relevant for apportionment of common input tax credit.

Exports and supplies to SEZ units or developers treated as outside the taxable territory, allowing either refund of accumulated input credit or export under bond or letter of undertaking.

Credit of tax paid on inward supplies of goods or services used in the course or furtherance of business, available against output tax subject to statutory conditions.

Input tax credit specifically denied by statute, such as on motor vehicles for passenger transport up to specified seating, food and beverages, club membership, and works contract for immovable property.

The formula-based method for splitting common input tax credit between taxable supplies and exempt or non-business use, with the exempt portion reversed.

A static auto-drafted statement of inward supplies generated for each registered person, forming the basis for claiming eligible input tax credit in a tax period.

An electronic document generated for movement of goods exceeding the notified value threshold, containing consignment, transporter and vehicle details, valid for a defined period.

The primary document issued by a registered supplier for a taxable supply, containing prescribed particulars that enable the recipient to claim input tax credit.

An invoice issued by the recipient for inward supplies received under reverse charge from an unregistered supplier, required to be issued and reported in the recipient's returns.

A monthly or quarterly summary return in which a registered person declares outward supplies, reports eligible input tax credit, and discharges net tax liability.

The consolidated yearly return reconciling turnover, tax paid and input tax credit claimed across all periods of the financial year, filed by registered persons above the notified threshold.

A reconciliation statement between the audited financial statements and the annual return, certified by a chartered accountant or cost accountant for persons exceeding the prescribed turnover.

A claim for cash refund of accumulated input tax credit arising from zero-rated supplies, inverted duty structure or specified categories, filed electronically in the prescribed form.

A situation where the rate of tax on inputs is higher than the rate on outward supplies, generating accumulated credit eligible for refund subject to statutory conditions.

A written determination by the Authority for Advance Ruling on the taxability, classification, valuation or eligibility of a proposed transaction, binding on the applicant.

The Goods and Services Tax Appellate Tribunal constituted to hear appeals against orders of the Appellate Authority, with benches and specified monetary thresholds for filing.

The mandatory portion of disputed tax or penalty paid before an appeal is admitted, required at each appellate stage as a condition for exercising the right of appeal.

The customs value on which import or export duty is computed, generally transaction value plus freight, insurance and specified additions, subject to valuation rules.

A refund of customs or excise duty paid on imported or indigenous inputs used in exported goods, allowed at notified rates or on the basis of actual incidence.

A licensed private or public warehouse where imported goods may be stored without payment of duty until clearance for home consumption or re-export.

The prescribed declaration filed by an importer with customs specifying goods, value, classification and duty payable, on which the assessing officer passes the clearance order.

The declaration filed by an exporter for goods intended for export, used by customs to assess duty, permit shipment and record export proceeds realisation.

Provisions governing duty-free allowance and levy of duty on goods brought in by passengers, crew and travellers, including transfer of residence and jewellery concessions.

A customs and central excise authority empowered to settle cases arising from show cause notices by determining liability, subject to immunity and specified exclusions.

A preventive detention law allowing detention of persons to prevent smuggling and foreign exchange violations, used where prosecution or adjudication is considered insufficient.

The statute regulating foreign exchange transactions, current and capital account dealings, holding of foreign assets and realisation of export proceeds, administered by the RBI.

A supply where the supplier's location and place of supply fall in different states or union territories, or goods cross Indian territory, attracting IGST.

A supply where the supplier's location and place of supply lie within the same state or union territory, attracting CGST and SGST or UTGST in equal shares.

A letter of undertaking furnished by an exporter to supply goods or services without payment of integrated tax, avoiding the need for a bond and bank guarantee.

A foreign trade policy scheme allowing import of capital goods at concessional or nil duty against an obligation to export goods of a specified value over a period.

A scheme permitting duty-free import of inputs or procurement domestically for manufacture of export goods, subject to a positive value addition and export obligation.

An export-oriented unit approved to manufacture goods primarily for export, enjoying duty-free imports and domestic procurement subject to positive net foreign exchange earnings.

An enterprise located in a special economic zone and treated as outside the domestic tariff area for customs and GST purposes, with supplies to it treated as zero-rated.

The duties of confidentiality, independence, integrity and due diligence owed by a chartered accountant in tax practice, including avoiding false certifications and conflicts of interest.