Introduction

India has a variety of indirect taxes including value added tax, service tax and excise duty, which were replaced by the GST that is a unified tax system. Another feature of GST is the status of a taxpayer’s registration, which can be established only by the codes of states. GST State Codes are two-digit number designations that facilitate the optimization of taxing procedures. This blog offers an in-depth explanation of the GST State Code List, including its advantages, uses, and significance in routine business operations.

For more details about the GST Registration Process, click here.

Meaning of GST State Code List

All Indian states and union territories have two-digit GST State Code List codes. These GST codes are essential for identifying product origin and destination. Taxpayers' GST numbers are 15-digit unique identity numbers. They include the PAN, entity code, and checksum digit after the state code.

These codes help simplify GST returns, tax calculations, and inter-state transactions. Without state codes, the GST system would face unnecessary complications, making identifying tax jurisdiction and ensuring compliance harder.

What is IRN Number?

Each GST e-invoice has a unique IRN. This 64-character alphanumeric code verifies and prevents invoice duplication. IRNs are produced using supplier GSTIN, invoice number, and financial year. Businesses need it for effective operations and GST compliance.

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Complete GST State Code List

More details about GST jurisdiction, compliance, and use cases follow in the detailed document above.

Benefits of GST State Code List

1. Simplified Tax Filing: GST State Codes simplify tax filings by identifying the transaction state.
   
   
2. Efficient Tax Calculation: State codes separate inter-state and intra-state transactions, affecting GST type (IGST, CGST, or SGST).
4. Increased Transparency: State codes promote tax record openness and prevent fraud.
   
   
5. Streamlined Business Processes: State codes assist in generating accurate invoices, reducing the risk of errors and disputes during audits.
   
   
6. Data Uniformity: A standard code list ensures uniformity in GST data across the country, facilitating smoother data management for businesses and government authorities.

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Instances Where GST State Code in India List is Used

The India’s GST State Code is vital to the compliance with GST regulations and transparency in the tax administration. These codes, though small in appearance, hold immense significance in various business processes. Here are some key instances where the GST State Code List finds widespread use:

• Invoice Generation: GST invoices must include the supplier and receiver state codes. This clarifies whether the transaction is interstate or intrastate, which decides the tax—IGST or CGST and SGST. Invoices are incomplete and non-compliant without state codes.
  
  
• Filing GST Returns: State codes are required for GST returns. Businesses must report transactions, including supplier destination state codes, on monthly or quarterly forms (GSTR-1, GSTR-3B, etc.). This identifies tax liabilities and guarantees state tax distribution.
  
  
• E-Way Bill Generation: An e-way bill is required for any goods transported across the states. Commodities are tracked and the taxes paid are checked by the GST State Code used for both the originating and the destination states. It decreases the rate of escape and the complexity of the travel.
  
  
• Identifying Tax Jurisdiction: State codes help determine the jurisdiction under which a business falls. This is very important in tax audits or inspections because the right tax authority supervises business operations.
  
  
• Input Tax Credit (ITC) Claims: For claiming ITC, the state codes on invoices are critical. They help validate whether the claimed tax is eligible for credit, especially in cases involving inter-state supplies where IGST is applicable.

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Where Do We Need State Code in GST?

The GST State Code is an essential part of the GST framework, ensuring accuracy, compliance, and ease in tax administration. It plays a crucial role in multiple aspects of GST operations and documentation. Here are the key areas where the state code is indispensable:

• GST Registration: When registering for GST, the state code is mandatory. It decides the jurisdiction in which the business will work. The first two digits of GST Identification Number (GSTIN), represent the state code, which is linked to a particular state of the taxpayer.
  
  
• Invoice Generation: State codes are essential while generating GST invoices. They help classify whether a transaction is intra-state (within the same state) or inter-state (between two different states). This classification determines the type of GST that is applicable:
• Intra-state transactions: CGST and SGST apply.
• Inter-state transactions: IGST applies.
  
  
• Filing GST Returns: During GST return filing (e.g., GSTR-1, GSTR-3B), state codes are necessary to specify the origin and destination of goods and services. This ensures proper tax allocation to the respective states and helps in accurate tax computation.
  
  
• E-Way Bills: For the transportation of goods, e-way bills are mandatory. The GST state codes of both the source and destination states are required for these e-way bills. This helps track the movement of goods and ensure compliance during inter-state and intra-state logistics.

Complete Understanding of GST Jurisdiction

GST jurisdiction is the territory or authority that oversees taxpayer GST concerns. It depends on a taxpayer's registration address or major business location. Jurisdiction determines whether the tax body handles registrations, filings, audits, and disputes—CGST or SGST. Understanding GST jurisdiction helps firms comply with the right authorities, streamlining tax processes. It helps ensure accountability, resolve disputes, and preserve GST tax administration integrity.

Importance of GST Jurisdiction

1. Tax Compliance: This ensures that businesses comply with GST laws under the correct tax authority.
   
   
2. Efficient Audits: They assist authorities in conducting audits and assessments in a seamless manner.
   
   
3. Dispute Resolution: It expedites the resolution of tax-related disputes.
   
   
4. Transparency: It fosters trust by connecting taxpayers with their designated jurisdictions.
   
   
5. Error Reduction: It reduces errors by assigning specific authorities for oversight.
   
   
6. Data Management: Aids in efficient data segregation and analysis for governance.
   
   
7. Accountability: It ensures that businesses are held accountable to their respective jurisdictions, thereby ensuring fair tax practices.

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Classification of GST Jurisdiction

The GST system classifies GST jurisdiction to facilitate smooth administration and compliance. It determines which tax authority, either central or state, oversees specific taxpayers and transactions. This classification plays a crucial role in maintaining efficiency and transparency in tax management.

• Central GST Jurisdiction: The Central Board of Indirect Taxes and Customs (CBIC) manages this jurisdiction. Central authorities administer issues like these for taxpayers in this category.
  • Inter-state transactions require the filing of Integrated GST (IGST).
  • Handling cases involving imports and exports.
  • Conducting audits and assessments for businesses falling under central jurisdiction.
    
    
• State GST Jurisdiction: The respective state's tax authorities govern the jurisdiction of the GST. Businesses conducting operations primarily within a specific state come under this jurisdiction. State authorities oversee:
  • State GST (SGST) compliance is required for intrastate transactions.
  • Local audits and assessments.
  • Collecting and monitoring tax revenue generated within the state is crucial.
    
    
• Dual Control and Turnover-Based Allocation: For certain businesses, both central and state jurisdictions may apply, depending on turnover or the nature of operations. Key aspects include:
  • Turnover Thresholds: Businesses with a turnover exceeding a certain limit may fall under dual jurisdiction.
  • Provisional Allocation: Depending on the operational scope, taxpayers may initially receive a central or state jurisdiction assignment.
    
    
• Sector-Specific Allocation: In some cases, GST jurisdiction is allocated based on specific sectors or industries. For example, export-oriented units and Special Economic Zones (SEZs) often fall under central jurisdiction due to the international nature of their activities.

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Searching Central Jurisdictions in GST

Businesses that trade interstate or internationally must find their GST central jurisdiction to comply with the right authorities. This step-by-step tutorial will help you find your primary jurisdiction:

1. Access the Official GST Portal:
   • Visit the official GST website at www.gst.gov.in.
   • The GST portal serves as the primary interface for accessing all GST services, including jurisdiction details.
     
     
2. Access the "Search Taxpayer" Tool:
   • On the homepage, look for the “Search Taxpayer” option, usually under the “Services” tab.
   • Click on it, and you’ll find multiple search methods, such as by GSTIN/UIN or PAN.
     
     
3. Enter GSTIN:
   • Input your GSTIN (15-digit GST number) in the search bar.
   • The first two digits of your GSTIN correspond to the state code, and the search results will display your central jurisdiction details, including division and range.
     
     
4. Explore Jurisdiction Lists:
   • If you do not have a GSTIN, use the “Know Your Jurisdiction” section on the GST portal.
   • Select your state, and the system will show a detailed list of central jurisdictions, organized by commissionerates, divisions, and ranges.
     
     
5. Use the CBIC Portal for Central Jurisdictions:
   • For a more detailed search, visit the CBIC (Central Board of Indirect Taxes and Customs) portal at www.cbic.gov.in.
   • Navigate to the “GST” section and click on “GST Jurisdiction.”
   • Here, you can search by state or a specific commissionerate for precise jurisdiction details.
     
     
6. Verify the Details:
   • After identifying your jurisdiction, double-check the details such as the commissionerate, division, and range to ensure precision.
   • This information will guide you in filing returns, complying with notices, and contacting the appropriate tax office.
     
     
7. Contact Local GST Office:
   • If online tools do not provide clarity, visit your nearest GST Seva Kendra or central GST office for assistance.
   • Officers will help you identify your jurisdiction based on your business location.

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How to Identify State from GST Number?

The GSTIN comprises 15 numbers, with the first two representing the state code. How to identify the state:

1. Understand the GSTIN Format: The first two numbers are the state code, then PAN, entity code, and checksum. For example, the GSTIN "27ABCDE1234F1Z5" codes Maharashtra as "27".
   
   
2. Refer to the State Code List: Match the two-digit code with the official GST state code list. For instance:
   • 01 = Jammu & Kashmir
   • 09 = Uttar Pradesh
   • 29 = Karnataka
     
     
3. Use the GST Portal: Enter the GSTIN in the "Search Taxpayer" tool on the GST portal. The result will display the taxpayer’s details, including their registered state.
   
   
4. Verify Invoices: GST numbers on invoices also reflect the supplier’s state through the first two digits.

Can the GST State Code Be Changed After Registration?

The GST state code cannot be modified during registration. If a taxpayer moves their business to another state, they must cancel their GST registration and register for a new one. GST associates the state code with the taxpayer's jurisdiction and primary business location. The GSTIN will reflect the new state code after registration. Businesses must update their registration immediately to avoid penalties, tax filing delays, and operational disruptions.

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What is the GST Number of Maharashtra?

Taxpayers in Maharashtra receive GSTINs starting with “27,” the state code. A typical GSTIN for a Maharashtra taxpayer is "27ABCDE1234F1Z5", where 27 stands for Maharashtra and other unique identification characteristics. Identification of jurisdiction and GST categories for interstate or intrastate transactions depends on this two-digit state code.

FAQs

1. What is the GST code for the 29 states?
   GST State Code 29 represents Karnataka.
   
   
2. What state code does 33 represent in the GST system?
   Tamil Nadu has the GST state code 33.
   
   
3. How can we identify a state from a GST number?
   The first two digits of the 15-digit GSTIN represent the state code. Match these digits with the GST State Code List to identify the state.
   
   
4. What is the 15-digit GST code?
   The GST code, also known as GSTIN, is a 15-digit number comprising:
   • First two digits: state code.
   • The next 10 digits represent the taxpayer's PAN.
   • 13th digit: Entity code.
   • 14th digit: Default (Z).
   • 15th digit: Checksum character.
     
     
5. Which state has code "CG"?
   CG refers to Chhattisgarh, and its GST state code is 22.
   
   
6. What is the state code of UP GST?
   Uttar Pradesh's GST state code is 09.
   
   
7. What is the state code of Chandigarh?
   The GST state code for Chandigarh is 04.
   
   
8. What is our state code?
   Your state code depends on your state of registration. Refer to the GST State Code List.
   
   
9. What is Maharashtra's GST number?
   GSTINs for Maharashtra begin with the state code 27.
   
   
10. Which state code is 27?
    GST State Code 27 belongs to Maharashtra.

Additional Notes

The GST State Code List is not only a vital tool for compliance but also serves as a backbone for ensuring seamless tax administration across India. Below are some key takeaways and best practices regarding GST State Codes:

• Always ensure the accuracy of GST State Codes on invoices to avoid penalties or discrepancies during tax audits.
  
  
• Verify GSTINs regularly to ensure they belong to the correct taxpayer and state jurisdiction.
  
  
• Maintain updated knowledge of GST laws and amendments, as state code requirements or applications may evolve over time.
  
  
• For businesses operating in multiple states, ensure proper registration and compliance for each state to avoid jurisdictional conflicts.
   
• Leverage technology, such as accounting software and GST portals, to automate and verify the use of state codes in documentation.

Conclusion

GST State Codes play an indispensable role in India's GST framework, facilitating compliance, efficient tax computation, and streamlined business processes. From ensuring accurate invoices to aiding in jurisdictional clarity, these codes contribute significantly to the seamless functioning of the GST system. Businesses and taxpayers must remain diligent in their application and understanding of these codes to ensure compliance and optimize their operations.

For further assistance, always consult the official GST portal or your local GST office. Proper usage and understanding of GST State Codes can lead to smoother audits, fewer disputes, and a more transparent tax process.