July 29, 2024

GST. These taxes are levied upon goods and services at every stage of the supply chain. The GST is classified into CGST (Central Goods and Service tax which is levied by the center), SGST (State Goods and Service tax which is charged by the state), and IGST (Integrated Goods and Service tax which is levied by both center and the state). GST was introduced on 1st July 2017, and the classified business category is required to get a unique ‘GST Identification Number’. This unique number combines several numbers; the first two are made up of state code. The GST state code list is a numerical code that represents each state and union territory in India, which is used by taxpayers while registering for GST and entering invoice details in GST returns. GST state code and GST jurisdiction are important data points for businesses to ensure a hassle-free processing of GST returns, applications, and assessments, and to avail facilities under the law. The government has classified jurisdictions based on geographical region, PIN codes of distinct locations, and distinct districts to make GST registrations easier for businesses and professionals. GST State Code A temporary GST state code will be assigned to you when you file your business enterprise on the GST portal, and after 7 working days, a permanent GST state code will be assigned to you, as long as all of your documents are accepted. The GST state code is extremely important and should be used on any invoices you receive or send. No firm agency will lead company and tax suppliers in the name of GST without a GSTIN. The GSTIN identifies a business and aids the supplier in determining whether or not the person for whom they’re transacting is registered on the platform and whether the fine print is right. Although the GSTIN may seem to be a random digit code or number, it is meticulously planned, with each digit/alphabet having a meaning. The first two digits of your GSTIN are used to determine where your company is located and where it is supplying. Objective of GST State Code GST Code assists the government in determining whether IGST, SGST, or CGST should be charged to a taxpayer or a business enterprise.  The state code of GST for a buyer can be accessed from the buyer’s Goods and Services Tax Identification Number, which is shown in the “Place of Supply” section of the GST invoice.  IGST would be fined if both the customer and the supplier’s state codes are different. If the two-state codes are the same, the SGST and CGST would be applied.  A taxpayer will use the code list to register with GST and enter invoice information in GST returns. GST Jurisdiction Any taxpayer who registers on the GST Portal is also expected to provide information about their GST jurisdiction. The method of determining your authority has become much simpler, with the GST platform providing a step-by-step guide. Classification of GST Jurisdictions The central and state jurisdictions are as the following- 1) 90% of the taxpayers having a turnover below Rs 1.5 crores will fall under state administration. The rest 10% of taxpayers will fall under central administration. 2) 50% of the taxpayers having a turnover above Rs.1.5 crore will fall under the state administration. The remaining 50% will be taken up by the Centre. The GST Jurisdictions are bifurcated on the basis of size, geographical location, hierarchy, etc. It is as follows- Zone Commissionerates Range offices Division offices The list of the States and Union Territories is mentioned below along with their GST codes. Name of the States and Territories State Codes Alphabetical Code Jammu and Kashmir GST Code 01 JK Himachal Pradesh GST Code 02 HP Punjab GST Code 03 PB Chandigarh GST Code 04 CH Uttarakhand GST Code 05 UT Haryana GST Code 06 HR Delhi GST Code 07 DL Rajasthan GST Code 08 RJ Uttar Pradesh GST Code 09 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 Where do we need State Code in GST? (1) GST registration Accurate and complete details must be entered by the applicant to obtain a valid GST registration. One such crucial information is the state and central jurisdictions for primary place of business. The information given by the taxpayer is verified by the officer. Thereafter, the applicant is allotted a GSTIN containing the relevant GST state code. (2) GST invoice and e-Invoicing GST state code becomes relevant for accurate invoicing and e-invoicing under GST. Valid GSTINs of buyer, seller and consignee contain the relevant state codes which are used to identify the place of supply of such sale. Eventually, place of supply decides type of GST to be charged based on whether it’s an interstate or intrastate sale. Suppose, a seller mentions buyer’s GSTIN with a wrong GST state code on the invoice. Then, it may lead to wrong charge of IGST instead of CGST and SGST or vice versa with an incorrect place of supply being picked up. If the seller happens to comply with e-invoicing by law, it can lead to cancellation of IRN due to incorrect state code GST and the need to raise