India’s Parliament approved the Goods and Services Tax (GST) on March 19, 2017. India has a multi-stage, extensive, location-based tax on all value additions. Businesses need to know the GST state code and GST jurisdiction to handle tax returns, uses, and evaluations smoothly and to take advantage of legal privileges.
What is the GST State Code?
The GST State Code List is a set of two-digit numbers representing India’s states and union territories. These unique codes can be utilised to specify where the provider and the intended recipient of the products or services are based. The specific code assigned to every state and union territory calculates the GST rate that will apply to the delivery of products and services.
Businesses should pay close attention to the GST state code and jurisdiction to ensure that their GST returns, uses, and evaluations are processed smoothly and that they can use all legal privileges. To simplify the GST registration process for professionals and companies, the government organised jurisdictions according to geographical region, PIN codes of various regions, and particular districts.
It is the initial two digits that make up the taxpayer’s 15-digit alphanumeric GSTIN number, which they are provided with after the registration is complete. Every Indian state is represented with a unique code that differs from the others.
Upon registering your business for GST, you will be given a temporary GST state code valid for 7 days. Following that, you will receive a permanent state code. According to GST guidelines, all businesses operating in different areas of the same state must register with the same state code.
GST State Code List
The state-wise GST State code list is as follows:
|State or Union Territory Name||Alpha Code||GST State Code|
|Andaman and Nicobar Islands||AN||35|
|Daman and Diu and Dadar and Nagar Haveli||DD, DN||26|
|Jammu and Kashmir||JK||01|
Objectives of GST State Code List
The GST state code list was created by the government for certain objectives to make the administration of businesses easy and more efficient. Here are some of the main objectives of this list:
- The GST Code enables government officials to decide whether IGST, CGST or SGST shall be applied to a taxpayer or commercial company.
- The recipient’s Goods and Services Tax Identification Number (GSTIN), shown under the “Place of Supply” portion of the GST invoice, may be used to determine the state’s unique code of GST.
- IGST would be charged if the GST state codes of the consumer and the seller were different.
- The SGST and CGST are implemented if the GST state codes of the two states are the same.
- A taxpayer must provide invoice details in GST returns and apply for GST using the GST state code list.
Where is the GST State Code Needed in GST?
Knowing the correct state code is important for a taxpayer as it is used in several applications in GST. Here are some of the ways the state code is used in GST:
A proper GST registration can only be obtained by a candidate submitting precise and comprehensive data. The state and central jurisdictions for the major business location are important details for GST registration. The law enforcement official validates the details provided by the taxpayer. Following that, the applicant is given a GSTIN with the appropriate GST state code.
GSTR-1 and GSTR-3B Return Reporting
Regular taxpayers are required to provide B2B invoice information, including the GSTIN, in the GSTR-1 filed every month or every three months. Depending on the GSTIN, these details are delivered to the right GSTR-2A/GSTR-2B of the buyers. If the vendor enters the GST State code incorrectly while providing the GSTIN in the invoice data in GSTR-1/IFF, a wrong individual or GSTIN could end up receiving the tax rebate in GSTR-2A/2B rather than the rightful customer.
GST Invoice and e-invoicing
GST state codes are important for efficient invoicing and e-invoicing within GST. Accredited GSTINs of the consumer, provider, and consignee include the appropriate state codes, which can be used to determine the supply source for that purchase. Lastly, the location of supply determines the kind of GST to be imposed depending on whether it is an intrastate or interstate transaction.
What are GST Jurisdictions?
The Indian government has set up GST jurisdictions to administer tax returns. These GST jurisdictions vary for various geographic areas and PIN codes. Taxpayers are required to file their enterprises with a certain jurisdiction according to the place they are situated. Registered taxpayers can check their jurisdiction on the Central Board of Indirect Taxes and Customs (CBITC) official website.
In the unlikely scenario of an issue, businesses can contact the jurisdiction officers assigned to them. These jurisdictions are divided into central and state jurisdictions.
Classification of GST Jurisdictions
According to CGST circular number 21/2017 of September 20, 2017, central and state jurisdictions should be addressed as follows:
- 90% of taxpayers with annual revenue under Rs. 1.5 crore are subject to state administration, and the remaining 10% are subject to central administration.
- The state government accounts for 50% of taxpayers, having an overall revenue exceeding Rs. 1.5 crore, and the centre for the remaining 50%.
GST jurisdictions are organised into different categories based on their size, hierarchy, and geographic location to make registration simple and convenient. The GST jurisdictions are categorised as follows:
- Range Offices
- Division Offices
How to Find GST Jurisdiction?
There are different ways to find the GST jurisdiction:
For State Jurisdiction
Each taxpayer might be obliged to determine the relevant State jurisdiction before registering for GST. To find the ward and circle to find out the State jurisdiction of the division, taxpayers need to navigate to the corresponding State’s commercial tax, VAT, or sales tax website.
To find the tax website of any state, the taxpayer simply needs to type “‘state name’ GST jurisdiction” in the search browser. This will provide them with the website. A systematic list of the wards, districts, taluks, divisions, and groups is available on the website.
For Central Jurisdiction
In the same way that the taxpayer must choose their state jurisdiction, they also need to choose their Central jurisdiction and limit. The CBIC has a special webpage called “Know your Jurisdiction” to access from any browser to look up the Central jurisdiction. With the following steps, one can find their GST jurisdiction easily:
- Visit the official website of “Know your Jurisdiction”: https://cbic-gst.gov.in/cbec-portal-ui/?knowYourJuris.
- Choose your state from a list of states and union territories that appear on the main screen.
- Choose a zone by clicking on the desired zone label.
- When you select a zone, a list of commissioners will be displayed on the screen. Select the appropriate commission rate applied to you.
- Following that, a list of sub-commissions/divisions will appear on your screen. Select the ideal sub-commissionerate/division.
- The list of jurisdictional areas will be given to you. Here, you can learn more details about the jurisdiction that governs your business’s operations.
- Following registration, the taxpayer can refer to the certificate granted to him in form REG-06 at any stage to determine the State and Central jurisdiction.
Establishing a successful business is a big step, and it requires proper legal registration to avoid any challenges and legal disputes. GST registration is a must for every business in India, regardless of the size of the business. GST state code list helps business owners to easily register their business, know their GSTIN number and GST jurisdiction easily and run their business smoothly.
FAQs on GST State Code List
1. Which state is GST-free?
The hilly regions and northeastern states in India are GST exempted, which include Jammu and Kashmir, Himachal Pradesh, Uttrakhand, Arunachal Pradesh, Mizoram, Sikkim, Tripura, Nagaland, Meghalaya, Assam, and Manipur.
2. Which state has the highest GST?
Maharashtra is the highest GST payer in the country.
3. What are the 11 special category states in GST?
The eleven special category states are Himachal Pradesh, Assam, Nagaland, Mizoram, Uttarakhand, Manipur, Meghalaya, Sikkim, Tripura, Arunachal Pradesh and Telangana.
4. What is the HSN code?
An established system for naming, categorising, and distinguishing products is the Harmonized System of Nomenclature (HSN). HSN codes are applied to categorise items and calculate GST.
5. Is GST the same for all states?
The GST rate is the same for all the states except for the exemption threshold for the states.