Discover some other key terms in GST like MRP, LUT, ARN, and DRC explained in simple language. Learn their full forms, uses, and recent updates for 2025!
Introduction Some Other Key Terms in GST
The Goods and Services Tax (GST) is a complex system with many terms, forms, and abbreviations. While most people know basics like “CGST” or “SGST,” there are some other key terms in GST that are equally important but often overlooked. This article explains these terms in simple language, helping businesses, taxpayers, and students understand GST better.
Let’s dive into the full forms, meanings, and uses of these terms!
1. What is the Full Form of MRP?
MRP stands for Maximum Retail Price. It is the highest price at which a product can be sold to customers. Under GST, MRP includes all taxes, so sellers cannot charge extra. For example, if a shampoo bottle has an MRP of ₹100, the seller must sell it at ₹100 or less, not a rupee more!
Why MRP Matters in GST:
- Ensures fair pricing.
- Prevents overcharging.
- MRP is printed on product packaging.
2. What is TP Full Form?
TP stands for Taxable Person. A taxable person is anyone registered under GST who supplies goods/services and must pay taxes. This includes businesses, freelancers, and companies.
Types of Taxable Persons:
- Regular taxpayer.
- Composition dealer (small businesses).
- Casual taxable person (temporary businesses).
3. What is LUT in GST?
LUT stands for Letter of Undertaking. It’s a document exporters submit to export goods/services without paying IGST. Instead of paying tax first and claiming a refund later, exporters use LUT for smoother transactions.
Why is it Called LUT?
The term “Letter of Undertaking” comes from the exporter’s promise (undertaking) to follow GST rules. If they fail, they must pay the tax with interest.
Key Features of LUT:
- Valid for one financial year.
- Filed online via the GST portal.
- No bond or security required.
4. What is the Full Form of ARN in GST?
ARN stands for Application Reference Number. It’s a unique number generated when you submit a GST application (like registration or refund). You can track the application’s status using ARN.
Example:
If Raj files a GST registration application, he’ll get an ARN like ARN-XX1234 to check if his GSTIN is approved.
5. What is the Full Form of IRN?
IRN means Invoice Reference Number. It’s a unique 64-character code generated for every e-invoice. The GST portal creates IRN using details like invoice number, supplier GSTIN, and financial year.
Benefits of IRN:
- Reduces fake invoices.
- Automates tax filing.
- Mandatory for businesses with turnover over ₹5 crore (as of 2025).
6. What is SCN in GST?
SCN stands for Show Cause Notice. It’s a legal notice sent by GST authorities asking a taxpayer to explain why they shouldn’t be penalized for issues like unpaid taxes or mismatched filings.
How to Respond to SCN:
- Reply within 30 days.
- Provide supporting documents.
- Pay dues (if applicable).
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7. What is the Full Form of RRN?
RRN is Return Reference Number. It’s generated when you file a GST return (like GSTR-1 or GSTR-3B). Use RRN to track return status or resolve errors.
Example:
If Priya files her GSTR-3B, she’ll get an RRN like RRN-AB5678 for future reference.
8. What is DRC in GST?
DRC stands for Demand and Recovery Certificate. When a taxpayer owes money (tax + interest + penalty), the GST department issues DRC to recover dues.
What Happens After DRC-01?
DRC-01 is the initial notice. If unpaid, authorities may:
- Freeze bank accounts (DRC-13).
- Attach property (DRC-16).
- Initiate prosecution.
9. What is OiAO in GST?
OIAO means Order-in-Appeal Order. It’s the final decision by the Appellate Authority after hearing an appeal against a GST order. For example, if a taxpayer disagrees with a tax demand, they can appeal, and the OIAO will decide the outcome.
10. What is ASMT-10 in GST?
ASMT-10 is a GST scrutiny notice. Tax officers issue it to verify discrepancies in filed returns. Taxpayers must reply with explanations or corrections.
Common Reasons for ASMT-10:
- Mismatch between GSTR-1 and GSTR-3B.
- Excess Input Tax Credit (ITC) claimed.
11. Is Zoho GST Free?
Zoho GST offers both free and paid plans. The free version allows basic features like filing GSTR-1 and GSTR-3B for small businesses. Paid plans (starting at ₹999/month) include advanced features like inventory management and multi-user access.
Zoho GST Free Plan Limitations (2025):
- Only 1 user.
- Maximum 50 invoices/month.
- No API integration.
Key GST Terms and Their Uses
| Term | Full Form | Purpose |
|---|---|---|
| MRP | Maximum Retail Price | Caps product selling price |
| LUT | Letter of Undertaking | Exports without IGST payment |
| ARN | Application Reference Number | Track GST applications |
| IRN | Invoice Reference Number | Validate e-invoices |
| DRC | Demand and Recovery Certificate | Recover tax dues |
FAQs: Some Other Key Terms in GST
What is MRP in GST?
MRP is the Maximum Retail Price printed on products. It includes all taxes.
Can a regular taxpayer use LUT?
No, LUT is only for exporters.
How to check ARN status?
Log in to the GST portal > Services > Track Application Status.
Is IRN mandatory for small businesses?
Yes, if turnover exceeds ₹5 crore (2025 rules).
What if I ignore an SCN?
The GST department may issue a tax demand or penalty.
How long is an LUT valid?
One financial year (April–March).
Can Zoho GST file returns for free?
Yes, but with limited features.
What is DRC-01?
A notice for unpaid tax, interest, or penalty.
What is ASMT-10?
A notice to explain discrepancies in GST returns.
Is OiAO final?
Yes, unless appealed in higher courts.
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Conclusion
Understanding some other key terms in GST like MRP, LUT, ARN, and DRC is crucial for compliance and smooth business operations. With GST rules evolving yearly (especially in 2025), staying updated helps avoid penalties. Use tools like Zoho GST to simplify filing, and always respond promptly to notices like SCN or ASMT-10.