Reference · 28 terms

Tax & GST glossary

Short, accurate definitions of every Indian tax and GST term a freelancer meets — no legalese, with a worked example and a practitioner tip on each.

Indian freelancers face a compliance stack most Western tools do not recognise: GST filings, TDS certificates, presumptive taxation under 44ADA, and four different ITR forms. Every definition here is checked against the CGST Act, the Income-tax Acts 1961 and 2025, and the Finance Act 2026.

GST · 9

GST
GSTR-1
Monthly or quarterly return of outward supplies (sales) filed by every registered taxpayer.
GST
GSTR-3B
Monthly summary return where you pay GST liability and claim Input Tax Credit.
GST
GSTR-2B
Auto-drafted, static monthly ITC statement showing which inward supplies you can claim.
GST
CGST, SGST, and IGST
Three GST components: Central GST, State GST, and Integrated GST.
GST
SAC (Services Accounting Code)
6-digit code that classifies services for GST reporting (the services equivalent of HSN).
GST
HSN (Harmonized System of Nomenclature)
6-8 digit code that classifies goods for GST reporting (the goods equivalent of SAC).
GST
LUT (Letter of Undertaking)
Undertaking that lets exporters supply zero-rated GST services without paying tax.
GST
RCM (Reverse Charge Mechanism)
GST mechanism where the recipient, not the supplier, pays the tax directly to the government.
GST
Composition Scheme
GST lite registration for small suppliers — fixed low rate, no ITC, Bill of Supply instead of Tax Invoice.

Income Tax · 6

TDS · 5

ITR · 2

Identifiers · 3

Concepts · 3

Compliance without the vocabulary

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HourSlip works out the GST on each invoice, logs every TDS deduction and estimates your advance-tax instalments — you check the numbers, and the glossary stays optional.

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Tax & GST glossary

GSTR-1

GSTR-3B

GSTR-2B

CGST, SGST, and IGST

SAC (Services Accounting Code)

HSN (Harmonized System of Nomenclature)

LUT (Letter of Undertaking)

RCM (Reverse Charge Mechanism)

Composition Scheme

Section 44ADA

Section 44AD

Section 87A Rebate

Section 234B Interest

Section 234C Interest

Advance Tax

Section 194J

Form 26AS

Form 16A

AIS (Annual Information Statement)

TDS (Tax Deducted at Source)

ITR-4 (Sugam)

ITR-3

GSTIN

PAN (Permanent Account Number)

FIRC (Foreign Inward Remittance Certificate)

Presumptive Taxation

ITC (Input Tax Credit)

FY vs AY (Financial Year vs Assessment Year)

Learn it once, or never learn it.