To ensure smooth tax administration, every state and union territory in India has been assigned a unique GST state code. Knowing these GST state codes and their respective jurisdictions is crucial for businesses and taxpayers. GST State code and GST jurisdictions help businesses with processing of GST returns and assessments.
What is the GST State Code?
GST state codes are unique two-digit alphanumeric codes assigned by the government to each state and union territory in India. GST state code is represented by numbers serially assigned to every state and Union Territory. As an example, GST state code 07 represents Delhi. Whereas, GST state code 29 represents Karnataka.
For a simpler understanding, the GST state code is mentioned in the Goods and Services Tax Identification Number (GSTIN). It is a unique 15-digit number provided by the government to any registered person or business entities under the Goods and Services Tax (GST) regime.
GST state codes play a crucial role in the GST system, helping in the identification of the origin and destination of goods and services during transactions. Understanding these codes is vital for proper compliance with GST regulations.
GST State Code List of India
The first two digits of any GST number (GSTIN) represent the GST state code. A taxpayer uses the GST state code list when registering for GST and entering invoice details in GST Returns in the form of GSTIN.
For example, 29 GST State code in 29AAGCR4375J1ZU represents a business registered under GST in Karnataka. Likewise, following are some more examples:
27 GST state code is for Maharashtra
06 GST state code is for Haryana
07 GST state code is for Delhi
09 GST state code is for Uttar Pradesh
GST state code 33 is for Tamil Nadu
19 is the GST State code for West Bengal
03 GST state code is for Punjab
GST state code 36 represents Telangana
GST state code 23 represents Madhya Pradesh
GST State code of Jharkhand is 20
New GST state code 26* is for merged UTs of Dadra and Nagar Haveli and Daman and Diu
GST Registration
When applying for GST registration, the State Code is essential to determine the taxpayer’s jurisdiction.To obtain a valid GST registration, accurate state and centre jurisdiction is mandatory. The information that the taxpayer provides is verified by the officer, only then the GSTIN is alloted. GST state code directs them to the correct tax authority based on their state or union territory. This ensures seamless registration and compliance.
GST Invoice and e-Invoicing
The State Code is crucial in GST invoicing and e-invoicing, as it forms part of the GSTIN. Valid GSTINs of the buyer or seller contain the relevant state codes which identify the place of supply. Once the origin and destination states are identified in transactions, accurate application of GST tax rates for interstate or intrastate transactions can be done which prevents errors.
An incorrect mentioning of a GST state code on the inv`oice with the GSTIN can lead to wrong charge of CGST and SGST instead of IGST or vice versa with a wrong place of supply.