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What is GST State Code List?

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GST State Code List
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GST minimises the tax burden and guarantees adherence to tax payment regulations. Do we need a state code for GST? GST state code list and jurisdiction are significant for the business as they ensure smooth GST returns and assessments, and make use of facilities under the law. The Indian government has categorized jurisdictions into geographical regions, PIN codes of distinct locations, and different districts to ease GST registrations for businesses and professionals.

It is vital for the taxpayer to declare the jurisdiction( business location) while applying for GST registration. The main objective of having short numerical codes is that it prevents all the confusion that is possible to come up with the alphabetical GST code in GST invoices and GST returns. The problem with the alphabet is that it can be tedious when processing invoices, finding the right GST liabilities and filling GST returns. In this blog, learn in detail about the GST state code list and jurisdiction.

What is the GST State Code List?

GST state code in India is crucial to file GST without any confusion. The GST State Code list provides distinct numerical codes assigned by the government to each state and Union Territory in a sequential manner. For example, Maharashtra’s unique GST state code is 27 and for Karnataka, the code is 29. The GST code gained importance after the implementation of GST in India.

If you check the Goods and services tax identification number (GSTIN), the GST state code will be mentioned. Every taxpayer registered under the GST law is provided with a 15-digit alphanumeric unique identification number. In the GSTIN, the first two digits represent the GST state code. A taxpayer while registering for GST avails the GST state code list. Further, the taxpayer enters the invoice details in the GST returns in the form of GSTIN.

For example, in the GST State code 10AAJCR2207E1Z2, the “10” signifies Bihar, indicating that the business is registered under GST in the state of Bihar. Some other examples of the GST state code list are mentioned below :

  • GST state code of Jharkhand is 20.
  • State code in GST for Odisha is 21.
  • GST state code 3 is for Punjab.
  • The state code for Manipur is 14
  • 32 is the state code for Kerala.
  • Dadra and Nagar Haveli and Daman and Dui has new GST state code which is 26*.
  • The state code for Andaman and Nicobar Islands is 35.

Also Read : Types of GST Returns

GSTIN (GST Identification Number)

Under this context, let’s learn about GSTIN and decode the unique numbers. GSTIN contains a 15-digit provisional ID or GSTIN. It is vital to know the structure of the GSTIN as it helps in verifying whether your supplier has quoted the exact GSTIN in their invoices. After this verification, you can then confirm if you have mentioned the GSTIN invoices of your customers. This will gain you an input tax credit.

The 15-digit invoice can be broken down into the following list.

  • The first two digits represent the state code.
  • 10 digits signify the PAN number.
  • The number of the registrations symbolizes 1 digit.
  • The default and checksum values indicate 2 digits.

Identifying the Place of Supply

The taxpayer should know the reason why the place of supply is crucial. Based on the place of supply the IGST or CGST and SGST will be charged. IGST would be charged if the Supplier state code and place of supply state code are different. In contrast, if the Supplier state code and place of supply are the same, CGST and SGST would be applied.

Where do we need the GST State code?

Taxpayers must be attentive to take note of the correct GST state code for each state and union territory. It is crucial for every GST taxpayer to be mindful of the accurate GST State codes for all states and union territories, as they are extensively employed in various aspects of GST compliance and adjudication. The requirement for the GST state code is crucial for the reasons enumerated below :

GST Registration

If you want to receive a valid GST registration, accurate and complete details must be entered. The place of the business is one of the essential information in the state and central jurisdictions. An officer verifies the information provided by the taxpayer. Subsequently, the taxpayer is given a GSTIN which includes the state code.

GST Invoice and e-invoicing

The GST state code is essential for precise invoicing and e-invoicing compliance within the GST framework. The valid GSTINs of the buyer, seller, and consignee incorporate the pertinent state codes, which serve to pinpoint the location of supply in such a transaction. The type of GST to be charged is based on the place of supply of sale. It can be an interstate or intrastate sale.

If a seller mistakenly includes an incorrect GST state code for the buyer’s GSTIN on the invoice, it could result in an erroneous application of IGST instead of CGST and SGST, or vice versa. This may also lead to an inaccurate determination of the place of supply.

The requirement to raise an invoice will happen again if the seller complies with the e-invoicing by law. It can also result in the cancellation of IRN due to incorrect state code GST.

Also Read : The Key Factors to know about the latest E-Invoicing under GST

GSTR(1) and GSTR-3B Return Reporting

It is mandatory for taxpayers to report B2B invoice details. It includes GSTIN in the GSTR-1/IFF filled quarterly or monthly. Depending on the GSTIN, all the information is passed to the respective GSTR-2A/GSTR-2B of the buyers. On the GST portal, there isn’t a mechanism or validation to verify if a tax invoice containing a specific buyer’s GSTIN is accurately added in GSTR-1/IFF unless it is automatically populated from the e-invoice portal.

Consequently, if the seller mistakenly includes an incorrect GST State code when entering the GSTIN in the invoice details of GSTR-1/IFF, the tax credit may be attributed to the wrong entity or GSTIN in GSTR-2A/2B, rather than the rightful buyer.

Where do we need GST Jurisdiction?

GST Jurisdiction is crucial as it reduces the complexities of processing the returns, applications, assessments and making use of the facilities under the GST law. The classification of GST Jurisdiction is done based on geographical location, pin codes of distinct locations and distinct districts. The taxpayer, while applying for GST registration must know the jurisdiction.

Classification of GST Jurisdictions

GST jurisdictions can be categorised in two ways.

Central Jurisdiction – This category is directly administered by the centre.

State Jurisdiction – This comes under the GST jurisdictions that directly come under the assessment of the state administration.

According to CGST Circular No. 21/2017, issued on September 20, 2017, the specified method for setting the boundaries between Central and State jurisdictions is as follows:

  • The state administration will have jurisdiction over 90% of taxpayers with a total turnover below Rs. 1.5 Crore, while the Central administration will oversee the remaining 10%.
  • Conversely, half of the taxpayers with a total turnover exceeding Rs. 1.5 crore will fall under the jurisdiction of the State administration, with the Centre overseeing the other half.

The allocation of GST taxpayers is automated and conducted at the state level through a process of stratified random sampling, which considers factors such as the taxpayer’s geographic location and type of registration. The GST jurisdiction is classified based on the hierarchy and size, in the following levels listed below.

  • Zone
  • Commissionerates
  • Division offices
  • Range offices

How to find GST Jurisdiction?

Finding Jurisdiction for a specific GSTIN or taxpayer can be done in more ways. Taxpayers when registering for the GST should declare an accurate and complete place of address. Subsequently, mentioning the accurate jurisdiction in the GST registration application is crucial as it will avoid further inconveniences.

Finding out State Jurisdictions in GST

First, the taxpayer has to find the respective state jurisdiction before acquiring GST registration. Taxpayers are required to visit the official website of their respective State’s commercial tax, VAT, or sales tax department to locate the ward and circle information, which will help them ascertain the department’s State jurisdiction.

For example, if you are searching for a jurisdiction in the state of Maharashtra, the web browser result will be given below.

https://mahagst.gov.in/en/jurisdictions-gst-registrations-0

In an organised manner, you can find the divisions, groups, wards and districts. Plus, similar to the GST in the state of Maharashtra website, you can find the jurisdiction for other states in the browser.

Find Central Jurisdiction in the GST

Searching for the central jurisdiction website is also similar to the state jurisdiction. In the web browser, the CBIC(Central Board of Indirect Taxes) also has a dedicated website to find out the central jurisdiction.

https://cbic-gst.gov.in/cbec-portal-ui/?knowYourJuris

Know your GST Jurisdiction process

After visiting the Central Board of Indirect Taxes (CBIT), follow the steps listed below to find out the jurisdiction they belong to.

Sure, here are the steps broken down into points:

1. Log in to the GST CBIDT website.

2. Locate the “services” tab.

3. Click on the “Know your jurisdiction” button in the drop-down menu.

4. Choose your state from the options in the left column on the screen.

5. Select your zone and the commissioner’s office when prompted.

6. After entering these details, the division and range fields will be automatically filled.

7. From the provided drop-down menu, select the appropriate options.

8. You will then be able to find out your GST jurisdiction.

Being aware of your jurisdiction ensures transparency and facilitates the swift resolution of any concerns or complaints you may have. In addition to understanding your GST jurisdiction, taxpayers can also seek assistance with various issues through the GST self-help portal.

How can ERP software help with GST state Code and Jurisdiction?

ERP system is designed to make accounting hassle-free and error-free. ERP is a completely automated software which manages business accounting at ease, be it invoice generation, sending or making of balance sheets, income statement, profit and loss statement, cash flow statement and bank reconciliation statements.

This advanced system will help in attaining real-time information which will help in measuring performance and making accurate strategies for the business. The real-time insights help in filing GST returns accurately based on the GST state code and jurisdiction hassle-free. In addition, with ERP, it will be easier to track sales, purchases, pending receipts and expected account receivables and account payables.

Conclusion

The taxpayer must have a clear understanding of the GST state code list and jurisdiction is essential for the businesses functioning in India. We learned that distinct GST codes are given to states and union territories. We need a state code to avoid the complexities of the GST tax filing. Taxpayers must ensure that the correct details are declared in the GST forms and they have to abide by all the GST laws and regulations.

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