,Preface
This book has been written in simple, easy-to-understand language to help BBA students learn
about Goods and Service Tax (GST). GST is one of the most important tax reforms in India's
history, and every business student needs to understand it.
This book covers all five units of the syllabus prescribed by Mahatma Jyotiba Phule Rohilkhand
University (MJPRU), Bareilly. Each concept is explained in plain language with examples so that
students can easily grasp the topics.
Whether you are preparing for your semester exams or want to understand how taxation works
in India, this book will be your helpful companion.
, Keywords & Glossary
Important Terms Explained — All 5 Units at a Glance
TERM DEFINITION / EXPLANATION
GST (Goods & Service A single unified indirect tax on supply of goods and services in India,
Tax) launched on 1st July 2017, replacing multiple taxes.
Central Goods and Service Tax — levied by the Central Government on
CGST
intra-state (within same state) supply of goods and services.
State Goods and Service Tax — levied by State Governments on intra-
SGST
state supply of goods and services alongside CGST.
Integrated Goods and Service Tax — levied by the Central Government
IGST
on inter-state supply of goods, services, and imports.
Union Territory Goods and Service Tax — applicable in UTs without
UTGST
legislature (e.g., Chandigarh); works like SGST.
The constitutional body (under Article 279A) that recommends GST
GST Council
rates, exemptions, and rules. Chaired by the Union Finance Minister.
The 'tax on tax' problem where taxes are levied on already-taxed values,
Cascading Effect
increasing costs at every stage. GST eliminates this.
A tax levied only on the value added at each stage of
VAT (Value Added Tax)
production/distribution, not on the full sale price.
A tax where revenue goes to the state where goods/services are finally
Destination-based Tax
consumed, not where they are produced.
Supply of goods/services where the supplier and the place of supply are
Intra-State Supply
within the same state. Attracts CGST + SGST.
Supply of goods/services where the supplier and the place of supply are
Inter-State Supply
in different states. Attracts IGST.
The taxable event under GST. Includes sale, transfer, barter, exchange,
Supply
license, rental, lease, or disposal of goods/services for consideration.
A supply consisting of two or more goods/services naturally bundled
Composite Supply together, with one being the principal supply. Taxed at principal supply
rate.
A supply of two or more independent goods/services bundled together.
Mixed Supply
Taxed at the highest rate applicable to any item in the bundle.
Exports and supplies to SEZ. GST rate is effectively 0% and the supplier
Zero-Rated Supply
is entitled to a refund of input tax credit.
Nil-Rated Supply Supply of goods/services on which the GST rate is 0% (e.g., salt, fresh
This book has been written in simple, easy-to-understand language to help BBA students learn
about Goods and Service Tax (GST). GST is one of the most important tax reforms in India's
history, and every business student needs to understand it.
This book covers all five units of the syllabus prescribed by Mahatma Jyotiba Phule Rohilkhand
University (MJPRU), Bareilly. Each concept is explained in plain language with examples so that
students can easily grasp the topics.
Whether you are preparing for your semester exams or want to understand how taxation works
in India, this book will be your helpful companion.
, Keywords & Glossary
Important Terms Explained — All 5 Units at a Glance
TERM DEFINITION / EXPLANATION
GST (Goods & Service A single unified indirect tax on supply of goods and services in India,
Tax) launched on 1st July 2017, replacing multiple taxes.
Central Goods and Service Tax — levied by the Central Government on
CGST
intra-state (within same state) supply of goods and services.
State Goods and Service Tax — levied by State Governments on intra-
SGST
state supply of goods and services alongside CGST.
Integrated Goods and Service Tax — levied by the Central Government
IGST
on inter-state supply of goods, services, and imports.
Union Territory Goods and Service Tax — applicable in UTs without
UTGST
legislature (e.g., Chandigarh); works like SGST.
The constitutional body (under Article 279A) that recommends GST
GST Council
rates, exemptions, and rules. Chaired by the Union Finance Minister.
The 'tax on tax' problem where taxes are levied on already-taxed values,
Cascading Effect
increasing costs at every stage. GST eliminates this.
A tax levied only on the value added at each stage of
VAT (Value Added Tax)
production/distribution, not on the full sale price.
A tax where revenue goes to the state where goods/services are finally
Destination-based Tax
consumed, not where they are produced.
Supply of goods/services where the supplier and the place of supply are
Intra-State Supply
within the same state. Attracts CGST + SGST.
Supply of goods/services where the supplier and the place of supply are
Inter-State Supply
in different states. Attracts IGST.
The taxable event under GST. Includes sale, transfer, barter, exchange,
Supply
license, rental, lease, or disposal of goods/services for consideration.
A supply consisting of two or more goods/services naturally bundled
Composite Supply together, with one being the principal supply. Taxed at principal supply
rate.
A supply of two or more independent goods/services bundled together.
Mixed Supply
Taxed at the highest rate applicable to any item in the bundle.
Exports and supplies to SEZ. GST rate is effectively 0% and the supplier
Zero-Rated Supply
is entitled to a refund of input tax credit.
Nil-Rated Supply Supply of goods/services on which the GST rate is 0% (e.g., salt, fresh
