GST State Code List and Jurisdiction

In the realm of Goods and Services Tax (GST) in India, state codes play a crucial role in simplifying tax compliance and administration. Each state in India is assigned a unique GST state code, facilitating seamless tax transactions and ensuring uniformity in tax processes across the country. In this article, we delve into the significance of the GST state code and its impact on businesses and taxpayers.

What is the GST state code?

GST state code refers to the unique code assigned to each state and union territory in India for the purpose of GST registration and compliance. These codes are numerical and vary from state to state, enabling the identification of the state or union territory where a taxpayer is registered under GST.

India’s complete GST state code list

Here are some key state codes in GST along with their corresponding states or union territories:

Significance of GST state code

GST state code plays a crucial role in various aspects of GST compliance and administration:

• Registration: When registering under GST, taxpayers are required to provide their state code along with other details. This ensures accurate identification of the taxpayer's location and jurisdiction.
• Intra-state transactions: GST state code is used to determine the place of supply for intra-state transactions. It helps in calculating the appropriate GST rate and determining the tax liability for transactions within the same state or union territory.  A GST calculator can help with GST-related calculations.
• Inter-state transactions: For inter-state transactions, the GST state code is essential for determining the location of the supplier and recipient. It enables the application of integrated GST (IGST) and facilitates the seamless movement of goods and services across state borders.
• Tax compliance: GST state code simplifies tax compliance for businesses by providing a standardised framework for registration, filing returns, and payment of taxes. It ensures uniformity in tax processes and enhances transparency and accountability in tax transactions.

How to identify state name from GST number

Every taxpayer registered under GST receives a unique 15-digit number known as the GST Identification Number (GSTIN). The structure of the GSTIN is as follows: the first two digits represent the GST State Code, the next ten digits are the taxpayer's PAN number, the thirteenth digit shows the number of registrations an entity has under the same PAN in that state, the fourteenth digit is always 'Z', and the final digit is the check code.

The GST State Code is essential for determining the state or union territory where a business is registered. For example, a GSTIN beginning with '07' indicates registration in Delhi, as '07' is Delhi's GST State Code. Similarly, '27' corresponds to Maharashtra, '33' to Tamil Nadu, and so on. You can identify the state from the GST number by using the GST State Code list.

Where do we use GST state codes

GST State Codes are crucial in the GST system and are used in various aspects such as registration, invoicing, and return filing. When a business registers for GST, the state code becomes part of the GSTIN, which is required for all GST-related documentation and procedures.

In invoicing, the GST State Code determines whether Integrated GST (IGST), State GST (SGST), or Central GST (CGST) should be applied to a transaction. If both the supplier and recipient are in the same state, CGST and SGST are charged. If they are in different states, IGST is applied.

GST State Codes also play an important role in return filing. The state code in the GSTIN allows tax authorities to identify the state where the GST return needs to be filed. This is particularly important for businesses operating in multiple states, as each state would require a different GSTIN.

Understanding GST jurisdiction

Understanding GST jurisdiction is crucial for businesses in India. It delineates the geographical areas managed by either state or central authorities based on turnover thresholds. Taxpayers with turnover below Rs. 1.5 crore (90% of total) are under state jurisdiction, while those above this threshold (50% of total) are split evenly between state and central oversight. This structure ensures efficient tax administration and compliance within defined regional boundaries, typically organized by PIN codes. Businesses must adhere to regulations specific to their jurisdiction, impacting everything from filing requirements to audits and dispute resolution, thereby ensuring smooth GST implementation across the country.

The importance of GST jurisdiction

Understanding GST jurisdiction, determined by your GSTIN, is vital for businesses in India. It dictates which tax authorities manage your tax returns and handle dispute resolutions. This clarity ensures efficient tax processing and compliance. GSTIN-based jurisdiction assigns specific regional authorities responsible for monitoring and enforcing GST regulations, streamlining administrative processes. It also facilitates effective dispute resolution by ensuring cases are handled by the correct jurisdictional authorities, minimising delays and confusion. Therefore, businesses must accurately determine and adhere to their GST jurisdiction to navigate regulatory requirements and maintain seamless operations within the GST framework.

Classification of GST jurisdictions

Classification of GST jurisdictions involves categorising areas based on their authority and responsibilities within the Goods and Services Tax (GST) framework. This classification typically includes:

• Central jurisdiction:Governed by the Central Board of Indirect Taxes and Customs (CBIC), responsible for administering CGST (Central Goods and Services Tax) and IGST (Integrated Goods and Services Tax) in specific regions.
• State jurisdiction: Managed by State Goods and Services Tax (SGST) authorities, overseeing the implementation and administration of SGST within their respective states or union territories.
• Union Territory jurisdiction: Similar to state jurisdictions but applicable to union territories, with UTGST (Union Territory Goods and Services Tax) administered by local tax authorities.
• Dual jurisdiction: Areas where both central and state authorities have concurrent jurisdiction, leading to the administration of both CGST and SGST.
• Inter-state jurisdiction: Pertains to transactions involving movement of goods or services between different states or union territories, regulated by the IGST mechanism under the authority of the Central Government.

These classifications ensure effective governance and enforcement of GST regulations across various geographical regions in India.

Why do you need to know your GST jurisdiction?

Knowing your GST jurisdiction is essential for several reasons. Firstly, it determines the correct tax office to handle your GST return, registration, compliance, and any queries or disputes. Each jurisdiction has specific rules and regulations that businesses must follow, which can affect how taxes are calculated and paid. Understanding your jurisdiction ensures you file returns accurately and on time, avoiding penalties for non-compliance.

Secondly, in case of audits or disputes, knowing your GST jurisdiction helps streamline communication with the relevant authorities. It also affects the place of supply rules, which dictate whether transactions are subject to Integrated GST (IGST), Central GST (CGST), or State GST (SGST). Correctly identifying your jurisdiction can also assist in getting refunds and resolving issues promptly.

Lastly, being aware of your GST jurisdiction can help businesses plan better by understanding the regional tax environment, leading to more effective financial planning and decision-making.

How to find or search for GST Jurisdiction?

To find or search for state jurisdictions in GST, taxpayers should first ensure they identify the respective state jurisdiction before obtaining GST registration. This can typically be done by referring to the respective state's commercial tax, VAT, or Sales tax website. These websites often provide tools or resources for taxpayers to search for specific information, such as ward and circle details, which are essential for determining the State jurisdiction of the department. By utilising these resources, taxpayers can accurately determine their state jurisdiction, ensuring compliance with GST regulations and facilitating a smoother registration process.

How to correct a wrongly informed GST jurisdiction?

If a taxpayer selects the wrong jurisdiction when applying for GST registration, it can be corrected. A request to change the jurisdiction details must be submitted separately to the administrative or IT cell of the relevant state to make the necessary changes.

Conclusion

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GST state code is a fundamental aspect of GST compliance in India, ensuring seamless tax transactions and fostering uniformity in tax processes across states and union territories. By leveraging the benefits of the GST state code and complementing it with a Bajaj Finserv Business Loan, businesses can unlock new growth opportunities.