GST State Code List and Jurisdiction

GST is a tax in India that has replaced many indirect taxes. On March 29, 2017, the Goods and Services Tax Act was passed by Parliament. The Goods and Services Act, which came into effect on July 1, 2017, is a comprehensive, multi-stage, destination-based tax that is imposed on any value addition in India.

In layman's terms, the Goods and Service Tax (GST) is a tax on the availability of goods and services. Many existing tax laws in India have been replaced by this legislation. GST is a single tax that applies to the whole world.

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-

1. Zone
2. Commissionerates
3. Range offices
4. Division offices

Need for GST State Code List in GST

Every GST taxpayer must be aware of the right GST State codes, as they are commonly used in GST compliance and adjudication. GST is important for the following key reasons-

a) GST Registration

To secure a legal GST registration, the applicant must supply accurate and comprehensive information. The state and central jurisdictions for the major location of business are one example of critical information. The officer verifies the information provided by the taxpayer. Following that, the applicant is assigned a GSTIN that includes the necessary GST state code.

b) Return Report

Regular taxpayers must include B2B invoice details, including GSTIN, in their monthly or quarterly GSTR-1/IFF. Based on the GSTIN, these details are forwarded to the buyers' respective GSTR-2A/GSTR-2B.

Unless it is auto-populated from the e-invoice portal, there is no process or validation on the GST portal to determine if a tax invoice holding a specific buyer's GSTIN is recorded correctly in GSTR-1/IFF. As a result, if the seller enters the incorrect GST State code while inputting GSTIN in invoice information in GSTR-1/IFF, the wrong person or GSTIN may end up receiving tax credit in GSTR-2A/2B instead of the correct buyer.

c) GST Invoice

Under GST, the GST state code becomes important for correct billing and e-invoicing. Valid GSTINs of the buyer, seller, and consignee include the applicable state codes, which are used to identify the location of the sale. Finally, the place of supply determines the type of GST to be charged based on whether the sale is interstate or intrastate.

Assume a seller mentions the buyer's GSTIN on the invoice with the incorrect GST state code. It may thus result in the improper charging of IGST instead of CGST and SGST, or vice versa, with an incorrect place of supply being picked up.

If the seller does not comply with e-invoicing as required by law, the IRN may be cancelled owing to inaccurate state code GST and the requirement to raise the invoice again.

GST State Code List of India

The Goods and Services Tax Identification Number (GSTIN) is a 15-digit alphanumeric specific identification number issued to all GST-registered taxpayers.

The state code is represented by the first two digits of a GSTIN.

A taxpayer uses the GST state code list when applying with GST and entering invoice information in GST returns.

For example, GST State code can be-

• 29 GST State Code is of Karnataka
• 07 GST State Code is of Delhi
• 27 GST State Code is of Maharashtra
• 24 GST State Code is of Gujarat
• 06 GST State Code is of Haryana

How to Identify your GST State Code?

Steps to locate your GST authority office address by following these measures.

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