Understanding the Concept of State Codes in GST

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Published Date:  03-12-2023   Author:   sumith-roul
captainbiz understanding the concept of state codes in gst

What comes to your mind, when you hear, the state codes in GST? That is what we aim to find through this article. We will also try to understand & identify state names from GST numbers.

Introduction

Through this article, we will try to understand the concept of state codes in GST. Moreover, we will read the importance and different applications of the GST state code.

GST or the Goods and Services Tax (GST) is a single tax that is levied on the supply of goods and services in India. The tax has to be paid by both the producer and the consumer. It is essentially a tax that takes place on value addition during a stage. 

The GST forms an integral part of the Indian taxation system and has been around for quite a while. With the GST, comes the GST state code list. It offers a unique identification code for each region or state in India. 

These codes are important for taxpayers and manufacturers as they need to pay according to their state codes. Besides, the state code list of the GST forms parts of the GST Identification Number (GSTIN). 

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What is the state code in GST?

The GST state code is the first two digits of the number on the GSTIN i15-digit alphanumeric number. The GSTIN is a unique 15-digit number assigned to you. After the registration, you can see your number. 

You may know by now, that the state code is different for each state in India. It helps to identify the state, where your business is registered. You see, the GST state code list has to be displayed on invoices for businesses.

For example, when the GSTIN number is 03AAJCR2207E1Z2, then the state code “10” indicates your business is based in Punjab. Once you have registered your business for GST, you will get a temporary state code for 7 days.

Then a permanent state code is provided for your business. Below are some examples:

  • GST state code 11 is for Sikkim
  • GST state code 15 is for Mizoram
  • GST state code 07 is for Delhi
  • In the case of Karnataka, the GST state code 29.

We can say that the GST state codes play a vital role in the GST system of India. Hence, understanding the GST state codes can help us in knowing the origination and the destination of goods and services. Besides, knowing the codes can help in compliance with GST regulations.

How is the GST state code determined?

The GST state code is determined using the following criteria:

  • First off, the GST code enables the government to find out if the IGST, SGST, or CGST should be charged to the business. 
  • The identification number that appears in the place of supply, is used to to obtain the state code of GST.
  • When the state codes of the customer are different from those of the producer, then the IGST is levied.
  • Likewise, when the two-state codes are similar, both the CGST and SGST are levied.
  • The code list is used by a taxpayer to register for GST.
  • It is also used to get the invoice information for your GST returns.

How many state codes are there in GST?

The GST State Code list:

State GST Code
Jammu and Kashmir 01
Himachal Pradesh 02
Punjab 03
Chandigarh 04
Uttarakhand 05
Haryana 06
Delhi 07
Rajasthan 08
Uttar Pradesh 09
Bihar 10
Sikkim 11
Arunachal Pradesh 12
Nagaland 13
Manipur 14
Mizoram 15
Tripura 16
Meghalaya 17
Assam 18
West Bengal 19
Jharkhand 20
Odisha 21
Chhattisgarh 22
Madhya Pradesh 23
Gujarat 24
Dadra and Nagar Haveli and Daman and Diu 26
Maharashtra 27
Karnataka 29
Goa 30
Lakshadweep 31
Kerala 32
Tamil Nadu 33
Puducherry 34
Andaman and Nicobar Islands 35
Telangana 36
Andhra Pradesh 37
Ladakh (Newly Added) 38
Other Territory 97
Centre Jurisdiction 99

 

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Best Practices for Recording and Utilizing State Codes in GST Transactions

As a responsible Indian GST taxpayer, you need to be aware of your correct GST State code. Otherwise, you may have to pay penalties and fines. That is because every state and union territory has its own GST state code. 

The GST is required for the following reasons:

  • GST registration

To receive the unique GST registration, you need to provide accurate information and data. Once the officer verifies your documentation, they will provide you with the GSTIN number that comes with the applicable GST state code.

  • GST invoice and e-invoicing

Secondly, it is required for your invoicing and e-invoicing. To identify the location of the transaction, a proper GSTIN of the seller, buyer, and consignee is required. That can be done through the relevant state codes.

  • GSTR-1 and GSTR-3B return reporting

As a responsible taxpayer, you have to also provide your B2B invoice details. That includes the GSTIN, in your quarterly or monthly GSTR-1/IFF. These details are given to the buyer’s GSTR-2A/GSTR-2B.

What is the use of state code?

The state codes not only help in identifying the location of a business but also enable them to have a smooth transaction. Besides, it helps a business to file their taxes properly. Similarly, the GST law states that a business that has several branches in the same state must be registered using the same state code.

On September 20, 2017, a CGST circular number 21/2017 was passed stating that,

  • 50% of taxpayers having a turnover of above Rs.1.5 crore annually, should be part of the state government. The remaining 50% will be part of the centre.
  • 90% of taxpayers having a total turnover of less than Rs.1.5 crore annually, will be part of the state administration, and the remaining 10% will be part of the centre.
  • The GST jurisdictions are based on their geographical location, size, and hierarchy.

The classification of GST jurisdiction is as follows:

  • Zone
  • Commission rates
  • Range offices
  • Division offices

How to find a GST jurisdiction?

As a taxpayer, you may want to find out your accurate state jurisdiction. This is before you decide on your GST registration so that you ensure you are paying state to the right state. When you are based in Karnataka and want to search for your jurisdiction, then you need to login to the website, http://gstkarnataka.gov.in/Jurisdiction.html by searching for Karnataka GST jurisdiction.

The GST state code helps you to pay the tax to the correct tax authority. It also provides you with seamless registration and compliance.

How to know your GST jurisdiction?

Here is how you know your GST jurisdiction:

Method 1 – Using the CBIC Portal

  • This will work only for the state jurisdiction. 
  • You have to log on to the website of the Central Board of Indirect Taxes and Customs (CBIC) https://cbic-gst.gov.in/.
  • Go to the ‘services’ option.
  • Click on the ‘know your jurisdiction’ option.
  • You are redirected to a webpage to access a list of States and Union Territories.
  • Choose the correct state or UT.
  • Choose your zone.
  • Then you have to choose the commission rate.
  • Select your division & range.
  • Choose the localities that fall under that range.

Method 2 – Using the GST Portal Using GSTIN

  • This method will work for both the state and the central jurisdiction.
  • Go to the website of the GST, https://www.gst.gov.in/.
  • Click on the ‘search taxpayer’ option.
  • Click on the ‘search by GSTIN/UIN’ option.
  • Enter the 15-digit GSTIN you want to know about.
  • Use the submit button, and you will be displayed with the detailed jurisdictional information.

Method 3 – Using state websites

You have to log on to the official website of the specific state.

  • Search for GST or taxpayer services option.
  • Use the know your jurisdiction option.
  • Now, type in the required details, like GSTIN or other relevant information.
  • Use the submit button.
  • You are provided with the state jurisdictional information.

Conclusion

In conclusion, we can say that the GST state codes of a particular jurisdiction simplify the GST collection process. Besides, it is convenient and transparent for taxpayers to ensure that they are making a proper transaction with a registered institution.

Moreover, knowing the GST state code list is vital to help a business smoothen its assessments, GST returns processing, and applications. They can make use of the benefits that have been provided by the country. 

Thanks to GST, the jurisdictions have been categorized according to their geographical regions, pin codes, and districts. Now, businesses and professionals can register effortlessly. Please remember, when you are applying for GST registration, mention the jurisdiction of your location. 

FAQs

  • What is the use of a state code?

The state code denotes a geographic region. It could consist of a state, a province, and even a country. The codes are used in the applications that need proper maps and data. 

  • When is the GST state code list updated?

The GST state code list is updated if there is a change in the political map of India. This happens when a new state or union territory has been created in the country. In 2020, the newly formed union territories of Daman and Diu, Ladakh, Dadra, and Nagar Haveli got new GST state codes.

  • What code classifies GST?

The services accounting code (SAC) is used to classify the GST. SAC stands for Services Accounting Codes and classifies services under the GST regime. These are a set of codes that are issued by the CBEC.

  • What is the state jurisdiction in GST?

The state jurisdictions are the jurisdictions that have been assessed. These jurisdictions come under the respective State administration. However, the central jurisdiction is those taken care of by the centre.

  • Can a business have multiple GST state codes?

It is possible for a business to have multiple GST state codes. You can find these businesses located in union territories and states. However, these businesses must have their own unique GSTIN. The business must be registered using different GST Codes in its GSTINs.

  • What happens if the wrong GST State Code is used in the GSTIN when registering?

If you have used the wrong GST state code in your GSTIN registration, then it may lead to tax filing and compliance issues. That is why, you must make sure that you have entered the correct state code during GST registration. Supposing, you have entered the wrong details, then please modify the GST registration details.

  • Which GST can be said it is within a state?

The supply of goods and services occurs within a state. This is also known as intra-state transactions, where the CGST and SGST are collected. When the supply of goods or services happens between the states, it comes under the IGST only. This is known as the inter-state transaction.

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Sumith Roul

Sumith Roul has post-graduation in computer science from Vellore Institute of Technology (VIT), then he decided to become a content writer. He has a writing career spanning more than 18 years, and He has worked with several international clients. His work involves several niches including GST, finance, stock market, and so on. I have designed & worked on several hundred product reviews, blogs, PRs, and other forms of content as well.

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