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Cashflow OS · Glossary

GST, accounting and Tally terms, explained

Short, plain definitions with a worked example, where each one sits in TallyPrime, and the mix-ups to avoid.

30 terms6 topicsFree to read

A

AccountingAgeingAgeing sorts unpaid bills by how many days old or overdue they are, so you can see which dues are fresh and which are getting hard to collect.

B

TallyBill-wise detailsBill-wise details track each invoice separately in a party's ledger, so every receipt, payment or note is matched to the exact bills it settles.

C

GSTComposition dealerA composition dealer is a small GST-registered business that pays tax at a fixed rate on turnover, cannot charge GST on bills and cannot claim input tax credit.TallyCost centreA cost centre is a tag on income and expense entries that lets you see results for one part of the business, such as a branch, salesperson, site or vehicle.AccountingCredit noteA credit note is a document a seller issues to reduce what a buyer owes on an earlier invoice, for returns, overcharges or discounts agreed in advance.

D

AccountingDay BookThe Day Book lists every voucher entered for a day or period in date order, so you can review all sales, receipts, payments and adjustments in one place.AccountingDebit noteA debit note increases the amount due on an earlier invoice; under GST a supplier issues it for undercharging, and buyers also use it for purchase returns.InvoiceDelivery challanA delivery challan is a document that goes with goods moved without a sale at that time, such as job work, approval sales or transfers within a state.

E

GSTE-way billAn e-way bill is an electronic document from the GST e-way bill portal that must go with goods moved above the notified value, with invoice and vehicle details.

G

TallyGodownA godown is any place where a business keeps stock, such as a warehouse, shop, branch or job worker's premises, tracked so you know what is held where.BusinessGross marginGross margin is the share of sales left after the cost of the goods sold, calculated as (sales − cost of goods sold) ÷ sales × 100.GSTGSTINA GSTIN is the 15-character number given to each GST registration in India: a 2-digit state code, the PAN, an entity number, usually Z, and a check character.GSTGSTR-1GSTR-1 is the GST return in which a registered business reports its sales invoices, credit and debit notes and HSN summary for a month or quarter.GSTGSTR-2BGSTR-2B is a monthly, read-only statement on the GST portal that shows the input tax credit available to you, based on what your suppliers have reported.GSTGSTR-3BGSTR-3B is the monthly or quarterly GST summary return in which you declare output tax, claim input tax credit and pay the net tax due.

H

GSTHSN codeAn HSN code is the number that classifies goods for GST and customs in India; it decides an item's GST rate and groups sales in the HSN summary.

I

GSTInput tax credit (ITC)Input tax credit (ITC) is the GST paid on business purchases that you can set off against the GST you collect on sales, so you pay tax only on the value you add.GSTIRN (Invoice Reference Number)An IRN (Invoice Reference Number) is the unique 64-character number the GST Invoice Registration Portal gives a B2B e-invoice, along with a signed QR code.

L

AccountingLedgerA ledger is an account that collects every transaction for one party, income, expense, asset or liability, showing its running balance at any time.

O

AccountingOutstandingOutstanding is the amount still unpaid on bills: receivables are what customers owe you and payables are what you owe suppliers.

P

GSTPlace of supplyPlace of supply is the state where GST treats a supply as made; compared with the supplier's location, it decides IGST or CGST plus SGST.InvoiceProforma invoiceA proforma invoice is a preliminary bill sent before a sale, showing items, prices, taxes and terms so the buyer can approve the order or pay an advance.

R

GSTReverse charge (RCM)Reverse charge is a GST rule under which the buyer, not the seller, pays the tax on certain notified supplies directly to the government.

S

GSTSAC codeA SAC (Services Accounting Code) is the six-digit code, starting with 99, that classifies services under GST, as HSN codes do for goods.TallyStock groupA stock group is a heading that collects similar stock items, so stock and sales reports can be totalled by product line instead of item by item.

T

TaxTCS (tax collected at source)TCS (tax collected at source) is tax a seller or e-commerce operator collects from the other party on specified transactions and deposits with the government.TaxTDS (tax deducted at source)TDS (tax deducted at source) is income tax the payer deducts from certain payments, such as contractor bills, fees, rent or commission, and deposits for the payee.AccountingTrial balanceA trial balance lists every ledger balance on a date, debits in one column and credits in the other; the two totals must match.

V

AccountingVoucherA voucher is the record of one business transaction, such as a sale, purchase, receipt or payment, with its date, amount and the ledgers it affects.

W

BusinessWorking capitalWorking capital is the money tied up in daily operations: current assets such as stock, debtors and cash, minus current liabilities such as creditors and short-term dues.

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