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.
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:
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. Both the producer and the consumer have to pay the tax. 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).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 authorities assign you a unique 15-digit number known as the GSTIN. 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 you identify the state where you registered your business. 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
- Also, GST state code 07 is for Delhi
- In the case of Karnataka, the GST state code 29.
How does one determine the GST state code?
We determine the GST state code 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 |
- GST registration
- GST invoice and e-invoicing
- GSTR-1 and GSTR-3B return reporting
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.
- 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.
- A webpage redirects you 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.
- 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.
- 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
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What is the use of a state code?
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When does someone update the GST state code list?
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What code classifies GST?
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What is the state jurisdiction in GST?
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Can a business have multiple GST state codes?
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What happens if someone uses the wrong GST State Code in the GSTIN when registering?
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Which GST can be said it is within a state?
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