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 invoice once again.
(3) GSTR-1 and GSTR-3B return reporting
Regular taxpayers must report B2B invoice details, including GSTIN, in the GSTR-1/IFF filed monthly or quarterly. These details are passed on to the respective GSTR-2A/GSTR-2B of the buyers, based on the GSTIN.
There is no mechanism or validation on the GST portal to confirm if a tax invoice bearing a particular buyer’s GSTIN is entered correctly in GSTR-1/IFF, unless it gets auto-populated from the e-invoice portal. Hence, if the seller erroneously mentions the wrong GST State code while entering GSTIN in invoice information in GSTR-1/IFF, the wrong person or GSTIN may end up finding tax credit in GSTR-2A/2B instead of the rightful buyer.
FAQs
What is 05 state code in GST?
05 is the GST state code for Uttarakhand.
When GST was started in India?
GST was implemented in India from 1st July 2017.