State Codes and Jurisdictional Authorities – Interplay in GST

State codes and jurisdictional authorities are the ideal combination to ensure the proper implementation of GST throughout the country. Come, let us read all about it to know more.

Introduction

GST is a tax that is prevalent in India.

Parliament passed the tax on March 29, 2017, replacing multiple indirect taxes. The Goods and Services Tax Act operates as a multi-stage, destination-based tax imposed on every value addition.

It is a tax that the recipient has to pay for using goods and services in the country. It is interesting to note that there were several existing tax laws before this in India. This single tax, GST State Codes, has replaced all of them.

In this article, we aim to find out how the state codes that have been assigned, and the jurisdictional authorities help in implementing the GST throughout the country. Without further ado, let us read to learn more.

What is state jurisdiction charge under GST?

The state jurisdiction of the GST is the area under which a particular officer has the authority to enforce the provisions.

The officer or proper authorities must enforce the provisions of the Goods and Services Tax (GST) laws in the area.

Jurisdictional Authorities in GST operate at two levels: the Central Level and the State Level.

 At the state level, the state tax officer is in charge of enforcing the GST law in the state. Likewise, at the central level, the central tax officer is in charge of enforcing the GST law at the national level. The authority needs to ensure that the taxpayers of the particular region or area that they are in charge pay their taxes regularly. The citizens of the area or region must comply with the provisions of the GST laws. Moreover, the officers and the authorities need to conduct proper audits and do annual assessments. Besides, they must conduct investigations related to GST when necessary. This can help in the smooth transactions of the GST laws.

How do you find state jurisdiction under GST?

We read about the types of jurisdiction under GST in the above passage. We will read more on them to get a clear picture. 

State jurisdiction

State jurisdiction is responsible for enforcing GST in their respective states. As you may know, every state in the country has its own GST department. The department is in charge of doing audits and, more importantly, registering the businesses based in the state, and obviously, collecting GST within their state. The department has to ensure that there is transparency. If they feel that there are some suspected cases of non-compliance, then they should conduct audits and investigations.

Central jurisdiction

Central jurisdiction is responsible for enforcing GST on a national level. The Central Board of Indirect Taxes and Customs (CBIC) ensures the implementation of GST throughout the country. The CBIC has to formulate procedures, guidelines, and policies for the proper implementation of GST, and managing GST compliance. The central jurisdiction also includes the GST Council, which is in charge of making recommendations on key GST issues. A few of them include revenue-sharing, tax rates, and exemptions between the central and state governments. We have provided you with the categorization of the GST jurisdictions in order of hierarchy and size.

• Zones
• Commission rates
• Divisions Offices
• Range Offices

Name of the states and territories	State codes	Alphabetical code
Jammu and Kashmir GST Code	1	JK
Himachal Pradesh GST Code	2	HP
Punjab GST Code	3	PB
Chandigarh GST Code	4	CH
Uttarakhand GST Code	5	UT
Haryana GST Code	6	HR
Delhi GST Code	7	DL
Rajasthan GST Code	8	RJ
Uttar Pradesh GST Code	9	UP
Bihar GST Code	10	BH
Sikkim GST Code	11	SK
Arunachal Pradesh GST Code	12	AR
Nagaland GST Code	13	NL
Manipur GST Code	14	MN
Mizoram GST Code	15	MI
Tripura GST Code	16	TR
Meghalaya GST Code	17	ME
Assam GST Code	18	AS
West Bengal GST Code	19	WB
Jharkhand GST Code	20	JH
Odisha GST Code	21	OR
Chhattisgarh GST Code	22	CT
Madhya Pradesh GST Code	23	MP
Gujarat GST Code	24	GJ
Daman and Diu GST Code	25	DD
Dadra and Nagar Haveli GST Code	26	DN
Maharashtra GST Code	27	MH
Andhra Pradesh GST Code	28	AP
Karnataka GST Code	29	KA
Goa GST Code	30	GA
Lakshadweep Islands GST Code	31	LD
Kerala GST Code	32	KL
Tamilnadu GST Code	33	TN
Pondicherry GST Code	34	PY
Andaman and Nicobar Islands GST Code	35	AN
Telangana GST Code	36	TS
Andhra Pradesh (New) GST Code	37	AD

Can we change state jurisdiction in GST?

Yes, you can change the state jurisdiction in GST. These things happen. If you chose the wrong jurisdiction when you were applying for the GST application, then you should get it corrected or rectified as soon as possible. You can do that by issuing a separate submission of a request to change the details of jurisdiction. This can be done before the administrative or IT cell of the respective state. When you want to transfer your GST from one state to another state, then you can do so. This may be due to a change in location or business address. When you have several companies that are based in several states, then you have to register in each state they operate. Each of the states where your business is in operation has a different tax method, hence they should be registered likewise. 

Can GST of one state be used in another state?

You can also add state jurisdiction to GST by using the following steps:

• You have to log into the CBIC website at https://cbic-gst.gov.in/. 
• Now, click on the ‘services’ option.
• Then click on the ‘know your jurisdiction’ option.
• Choose the state for which you are looking at a GST jurisdiction list.
• Now, choose the zone.
• You have the commissioner option.
• Select the division & range.

Which states are not GST applicable?

This is a piece of very crucial information for taxpayers. Because, if you belong to the states where GST is not applicable, then you do not have to pay. Hence, please make it a point to find out whether you belong to the state or not. This is vital especially if you are running a small business. Moreover, if you are running & operating a small and medium-scale business, then you can enjoy GST exemptions. That is if your business turnover is up to a specified limit.

These limits are as follows:

• Businesses who are supplying goods can get GST exemption if the aggregate turnover is less than INR 40 lakhs per year. Besides, they do not fall under compulsory registration.
• For now, the limit has been revised up to INR 20 lakhs per year. This is for the North Eastern states and hilly regions of India. 
• For businesses involved in the supply of services, if the turnover is less than INR 20 lakhs, then they can claim GST exemption. 
• For businesses in the supply of services, based in North East India and hilly regions, in India that have an aggregate turnover of up to INR 10 lakhs, then they can also claim GST exemptions.
• The North East Indian states and hilly regions would include Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Jammu and Kashmir, Meghalaya, Mizoram, Tripura, Nagaland, Sikkim, Assam, and Manipur.

The aggregate turnover, per year, means the aggregate value of all types of taxable supplies. They can also include the goods and services, which have been exported, inter-state supplies, and exempt supplies. However, the following would be deducted from the value of aggregate turnover:

• The IGST is already paid by the investor, CGST, and SGST.
• Taxes to be paid based on the reverse charge mechanism.
• The value of the inward supply of goods and services.
• The value of non-taxable goods and services.
• GST exemptions for goods.

Here is a list of goods that do not have any GST on them. These were recommended by the GST Council. Following are the reasons for granting exemption:

• Interest of the public.
• As per the GST Council’s recommendation.
• Granted by the Government through a special order.
• Allowed on specific goods through an official notification.

Types of GST exemptions on goods

There are two types of GST exemptions on goods, which are follows:

• Absolute exemption is the supply of specific types of goods that are exempted from GST. The details of the supplier or receiver are not considered, and if the goods are supplied within or outside the state.
• Conditional exemption is the supply of goods that are exempted from GST subject to certain conditions specified under the GST Act.

GST exemption on services

There is also a GST exemption on services as well. They are as follows: 

• Supplies that have a 0% tax rate.
• Goods and services that don’t have to pay CGST or IGST because of rules in a notice.
• Supplies defined under Section 2(78) of the GST Act.
• Types of supplies without any Input tax credit applicable and would not be available to set off the GST liability.

Under the supply of services, there are two types of GST exemptions. They are as follows:

• Absolute exemption as the service would be exempted from GST.
• Partial exemption where the exemption is granted based on a condition. The GST would be exempted if the total value received by a registered person is not more than INR 5000/day.

Also Read: Applicability and exemptions for GSTR-9

Conclusion

We have now concluded our discussion on state codes and jurisdictional authorities, specifically the Interplay of State Codes in GST. Throughout this discussion, we explored how businesses determine state jurisdiction under GST and apply state jurisdiction charges.

Additionally, we examined how taxpayers can change their state jurisdiction in GST and clarified whether they can use the GST of one state in another. Lastly, we identified the states where GST does not apply. We hope this comprehensive information helps you navigate GST regulations effectively.

Please do the needful immediately. if you find something wrong in your GST filing. Also Read: Understanding The Concept Of State Codes In GST Understanding GST Time of Supply for Goods and Services

FAQs

• What is the state jurisdiction charge under GST?

The state jurisdiction charge under GST states that 50% – 90% of the taxpayers who have a yearly turnover under Rs 1.5 crores come under the state administration. The remaining 10% of taxpayers come under the central administration.

• How do I know my state jurisdiction in GST?

You can find out more about your state jurisdiction in GST by logging on to the CBIC website at https://cbic-gst.gov.in/. Now, you can click on the services option, and then click on the ‘know your jurisdiction.’ Choose the state for which you are looking for a GST jurisdiction list, then you have to choose the zone. Then you can make use of the commissioner option. Now, select the division and then select the range of your state jurisdiction in GST. This is how you can know your state jurisdiction in GST.

• What is the jurisdiction of the state?

The jurisdiction of the state is the power of a state that has the ability to affect an individual, property, and circumstance as well. These things can happen under the territory. Judicial or executive authorities exercise this power through specific actions and decisions.

• Is state code mandatory for GST invoices?

The GST invoice should carry the name and the original address of the recipient. More importantly, the GST invoice should have the address of the delivery. It should also contain the state name and state code.

• What is meant by tax jurisdiction codes?

The tax jurisdiction code is a smaller code that represents the province, state, or district. The code determines the exact amount of tax deducted from a single transaction. This transaction must then go to each tax authority. 

• Can the GST of one state be used in another state?

A business cannot use the GST of one state in another state. You can use it for doing business in any other state you want in India. Because the Goods and Services Tax (GST) has the ability to replace several indirect taxes charged by the central and state governments.

• How is the jurisdiction of a tax authority defined?

The area that you reside in is the jurisdiction of the tax authority. For example, if you reside in Mumbai, then you come under the Mumbai tax authority. The jurisdictional assessing officer is an officer who works under the Income Tax Department, to oversee the area assigned to him.

• How to correct a wrongly selected GST jurisdiction?

If you wrongly choose your GST jurisdiction, then you can rectify it with a separate submission of the request. This is something that you need to do before the administration of your state. Then you can change the details of the jurisdiction.