In this paper, we divide antennas at the transmitter into K transmit antenna groups (TAGs) and extend the generalized spatial modulation (GSM) idea to a new precoding aided multiple-input multiple-output (MIMO) system, which is referred to as precoding aided GSM (PGSM) system. To select the receive antenna subset with low complexity, a class of efficient receive antenna selection techniques with low computational complexity are devised. To reduce the complexity of maximum likelihood (ML) detector, a low complexity iterative greedy (IG) algorithm relied ML (IG-ML) detector is also derived. Simulation results show that the bit error rate (BER) performance gain up to 3.5 dB is obtained by the proposed PGSM with IG-ML detector over the PGSM with ordered block minimum mean-squared error (OBMMSE) detector at a given BER of 10-4. It is also shown that the proposed PGSM with IG-ML detector achieves a similar BER performance in high signal-to-noise power ratio (SNR) region compared to that of an ideal precoding for the GSM with optimal ML detector.