GST State Code List and Jurisdiction

The government of India implemented the GST (Goods and Services Tax), a new tax system that replaces multiple indirect taxes. The introduction of GST has been viewed as one of the most significant tax reforms in India, and it has brought a paradigm shift in the Indian tax structure, increasing tax compliance among both individuals and business entities.

If you are a business owner in India and registered under the GST (Goods and Services Tax) system, you would know that navigating through its compliance processes can be quite overwhelming. Knowing your GST jurisdiction and state code is paramount at the time of GST registration, replying to the notices sent by the GST official, and filing your tax returns.

What is the GST state code?

The government of India has serially assigned an alphanumeric code to all the states and union territories in the country for the purpose of easy identification of the state. For example, the code for Punjab is 03; for Maharashtra, it is 27; and for Tamil Nadu, it is 33.

As a business owner, you may create or receive GST invoices from the suppliers or other stakeholders, and you would find the GST state code mentioned in it as part of the GST identification number or GSTIN, which is a 15-digit number that all taxpayers are assigned under GST laws.

The first two digits of the GSTIN start for the state code as per the GST state code list. With this code, you can easily identify the state of GST registration of the company raising the invoice. For example, if the GSTIN number mentioned in the invoice you receive is 33AAMPM1897Z5X9, then you can know that the taxpaying individual or entity is from Tamil Nadu since the first two digits are 33, which is the state code for Tamil Nadu.

Here is a complete state-wise GST code list

Name of the State	GST Code
Jammu and Kashmir	01
Himachal Pradesh	02
Punjab	03
Chandigarh	04
Uttarakhand	05
Haryana	06
New Delhi	07
Rajasthan	08
Uttar Pradesh	09
Bihar	10
Sikkim	11
Arunachal Pradesh	12
Nagaland	13
Manipur	14
Mizoram	15
Tripura	16
Meghalaya	17
Assam	18
West Bengal	19
Jharkhand	20
Odisha	21
Chhattisgarh	22
Madhya Pradesh	23
Gujarat	24
Daman and Diu	25
Dadra and Nagar Haveli	26
Maharashtra	27
Andhra Pradesh (old)	28
Karnataka	29
Goa	30
Lakshadweep	31
Kerala	32
Tamil Nadu	33
Puducherry	34
Andaman and Nicobar Islands	35
Telangana	36
Andhra Pradesh	37
Ladakh	38
Other Territory	97
Centre Jurisdiction	99

Uses of GST state codes

The GST state codes are important and used for several important business processes, including.

• GST Registration

  When you register your business for GST, you must provide the correct GST state to ensure that the right location and district are recorded in the GST officials' records.

  
  

• Invoice generation

  When you generate any invoice, you must compulsorily mention the GSTIN in it. This helps in identifying the type of GST, i.e., IGST (Integrated Goods and Services Tax), CGST (Central Goods and Services Tax), or SGCT (State Goods and Services Tax) is applicable to the transaction.

  
  

• Filing tax returns

  The state code in the GSTIN enables tax officials to easily identify the state where the business must file its GST returns. This is critical for businesses that operate in different states and require different GSTINs for each location.

  
  

GST Jurisdiction - understanding what it is?

GST jurisdiction is the geographical area under the specific GST officer or state administration. These areas are based on the regions and PIN codes, and each and every taxpayer in the country falls under a specific jurisdiction based on the primary location of their business.

There are two types of GST jurisdiction – state and centre jurisdiction and they are separated on the following basis:

• 90% of the taxpayers have a total turnover of less than Rs. 1.5 crore come under the state administration, and the remaining 10% under the central administration.
  
• 50% of the taxpayers have a total turnover of more than Rs. 1.5 crore falls under the state administration, and the rest of the 50% falls under the central administration.

Why is GST jurisdiction important?

As a taxpayer, it is important that you know your GST jurisdiction. It will help in the following ways:

• Knowing your GST jurisdiction will help you comply with local tax laws. For example, if your business establishment is based in Maharashtra, knowing the exact jurisdiction will help you be compliant with important GST deadlines.
  
• Different areas can have different tax rules or rates. And, if you have business operations in a certain state and apply the wrong rate, you could end up paying a hefty penalty.
  
• If you need any help regarding tax matters, knowing your GST jurisdiction can help you connect with the concerned tax authorities and get your issues resolved.
  
• Your GST returns filing must be as per the rules and regulations applicable within your jurisdiction, or else there may be delays in filing the returns, or you may receive a notice from the tax authorities.

Conclusion

As a business owner in India, you must have a good understanding of the GST code list and jurisdiction so that you are always on top of your tax responsibilities. While understanding the GST code is essential for tax compliance, you must also do your due diligence while applying for a business loan.

It is best advised to approach only reputed and credible lenders like Udyog Plus, part of Aditya Birla Finance Limited. They offer business loans at competitive interest rates and flexible repayments and have simple eligibility criteria and documentation requirements.

You can visit the Udyog Plus website to learn more about business loans and apply online!