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GST State Code List and Jurisdiction

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GST State Code List & Jurisdiction

Business entities are mandated by law to be in possession of a unique number under GST registration. In doing so, the businesses are enabled to collect GST-related taxes from the eligible recipients. The next step in the process is to avail input credit by claiming on the website. GSTIN is the acronym for GST identification number and it should be carried by every business entity under the CGST Act of 2017.

What is GSTIN?

Goods and services tax identification number is a unique 15 digit representation presentation that is displayed on the registration certificate. The certificate of registration is given to the applicant on the completion of the departmental formalities. The GSTIN application requires the furnishing of identification, address and office proof. Also, articles of the memorandum, articles of association and the company incorporation documents need to be submitted to the concerned GST officer for processing your application.  

The status of your GST registration will be intimated to you on your registered mobile number and email within two weeks of the receipt of the application. The applicant is provided with a username and password which need to be kept safely.

Format of GST

GSTIN identification number is a combination of alphanumeric characters. This 15 digit number is similar in functionality when compared to a PAN card. The GST identification number is internally mapped to the permanent account number and it depends upon the origin state. Every GST identification number is unique for the category of business under which the firm is operating.

The format of the GST identification number can be understood based on the following inputs:

  • The first two digits referred to the unique state code
  • The next succeeding 10 digits indicate the PAN number
  • The 13th digit indicates registration parameters under a single PAN number
  • The fourteenth digit reflects the nature of business. The alphabet Z is placed just beside the fourteenth digit on a default basis and it can assume any future classification as directed by the GST authorities
  • 15th digit is an alphanumeric character that contains the check code

Who needs to get GSTIN?

  • Private individuals are body corporations having an aggregate market capitalization of greater than or equal to 40 lakh rupees in the case of the category of goods.
  • Incorporated companies, proprietorship, partnership concerns, and entrepreneurs having an aggregate annual turnover/market capitalization of more than 20 lacs of rupees in case of service category.
  • Business individuals, incorporated companies and NGOs with a market capitalization of more than rupees 20 lacs that fall under the category of goods supply for the regions of Northeastern states

What is considered a state code under GST?

In the standard GST identification number format, certain points need to be considered. The first two digits refer to the identification of the state code. This state code is necessary to identify the area of operations and the location of the headquarters of the business entity. According to GST law, any business entity which has different branches in the same state should have only one GST identification number. For all commercial and legal purposes, the GSTIN number tabulates all transactions around the periphery of the concerned individual or business identity and they are properly cataloged under the GST law.

GST software has been designed in such a way to ensure transparency in the amount of taxes collected by each state.

Since there are various GST regulations in each state, there is an absolute need for a uniform state code. The usage of GST numbers with the appropriate state code helps identify the business entity’s financial transaction patterns. This helps in the correct processing of financial documents and makes it convenient for the state and the central GST authorities to maintain a financial paper trail to assess the input credit given to the individual States.

The GST state codes also have alphabetical codes. Below given is the table containing GST state codes:

Serial Number

State Name

State Code

1

JAMMU AND KASHMIR

1

2

HIMACHAL PRADESH

2

3

PUNJAB

3

4

CHANDIGARH

4

5

UTTARAKHAND

5

6

HARYANA

6

7

DELHI

7

8

RAJASTHAN

8

9

UTTAR PRADESH

9

10

BIHAR

10

11

SIKKIM

11

12

ARUNACHAL PRADESH

12

13

NAGALAND

13

14

MANIPUR

14

15

MIZORAM

15

16

TRIPURA

16

17

MEGHLAYA

17

18

ASSAM

18

19

WEST BENGAL

19

20

JHARKHAND

20

21

ODISHA

21

22

CHATTISGARH

22

23

MADHYA PRADESH

23

24

GUJARAT

24

25

DADRA AND NAGAR HAVELI AND DAMAN AND DIU (NEWLY MERGED UT)

26*

26

MAHARASHTRA

27

27

ANDHRA PRADESH(BEFORE DIVISION)

28

28

KARNATAKA

29

29

GOA

30

30

LAKSHWADEEP

31

31

KERALA

32

32

TAMIL NADU

33

33

PUDUCHERRY

34

34

ANDAMAN AND NICOBAR ISLANDS

35

35

TELANGANA

36

36

ANDHRA PRADESH (NEWLY ADDED)

37

37

LADAKH (NEWLY ADDED)

38

How to know your GST jurisdiction?

CBIC is also known as the Central Board of indirect taxes provides business entities and individuals with the opportunity to know the GST jurisdiction. The jurisdictional officer is a point person to solve any disputes relating to the payment of credits and other ancillary matters between the states and the commercial concerns. The jurisdiction is also helpful to streamline and thrash out any jurisdiction issues between the state and the center.

  • The taxpayers can enjoy a lot of transparency after knowing which jurisdiction they belong to and convey the jurisdictional officer’s grievances.
  • Knowing the state of registration of a business entity is important to successfully process the various invoices that are generated within the boundaries of the state.

The option for multiple GST identification numbers is provided only when the taxpayers have different branches of the same business across various States. For example, a business in Delhi that has a branch in Rajasthan should have two distinct GSTIN numbers.

Process to know the GST jurisdiction

Given below are the steps for anyone to visit the Central board of indirect taxes (CBIDT) website and find out under which jurisdiction they fall

  • Login to the GST CBIDT website. Upon closer examination, you will find the services tab. Then click on the “Know your jurisdiction” button that is visible in the drop-down menu.
  • Make a selection of the respective state in the left column provided on the screen
  • You will be prompted to select the zone followed by a selection of the commissioner’s office. After entering the details, the fields under division and range will be populated.
  • Select the appropriate options from the drop-down menu to know your accurate GST jurisdiction.

Salient points regarding GST jurisdiction

  • With regards to private individuals or business entities with an annual turnover of one and a half crore, it is deemed that administrative control over 90% of the total turnover will come under the jurisdiction capability of the state tax authorities. The remaining 10% will fall under the jurisdiction of the Central tax administration.
  • Administrative control of all taxpayers with more than 1.5 crore turnover shall be shared between the center and the states.
  • The division of the tax players will take place under the state jurisdiction through the use of a proprietary GST software enterprise network, based on the method of stratified random sampling. The tax jurisdiction method also considers the geographical location of the business entity.
  • The government has initiated a separate web portal that helps tax-paying citizens accurately determine the tax range under which a particular taxpayer falls and the name of the state jurisdiction.
  • The GST registration process requires the taxpayer to provide an accurate assessment of their place of business incorporation as this helps in the correct assignment of jurisdiction. The government has implemented GSTIN software in such a way to exactly determine the jurisdiction of the taxpayer using identifying inputs such as region of business.

The following are the various tools available to the taxpayers for more information regarding their GST requirements:

  • GST self-help portal helps taxpayers to lodge legitimate complaints to correctly document the jurisdiction of the individual business.
  • Taxpayers can also lodge complaints on different issues other than finding out the jurisdiction. The design of the website makes sure that the taxpayers can upload the screenshots of the individual account pages in which they perceive a problem.
  • Online registration of complaints allows for quick resolution of technical issues that many new users are facing when trying to determine their jurisdiction.

Process to find out the GST jurisdiction

Taxpayers can find out their state jurisdiction by logging on to the websites of their GST departments in their respective states. Central jurisdiction information can be known by clicking the CBSE portal in the GST website.

What to do when the taxpayer is not able to find the name of the jurisdictional officer in the GST website?

This issue may occur due to the wrong input of the jurisdiction when the original GST registration took place. Any changes in the Income Tax department terminology related to wards, circles, pin code and the locality of the business can also cause discrepancies. In such cases, the administrative cell of the GST department needs to be contacted. The grievances of the GST taxpayers are immediately looked at by the employees of the tax department. Adequate technical steps are taken to prevent cumbersome processes which may result in hardship to the taxpayers. Toll free customer service numbers, self-help centres and even official social media accounts of the GST departments can be accessed to find out the right information regarding the GST jurisdiction.

What is the definition of GST?

The goods and service Tax is an indirect form of taxation on the total goods and services produced in the country. The GST act came into effect from the 1st of July 2017.

Features of GST

  • GST is calculated on the basis of destination. GST forms an umbrella term and substitutes other indirect taxes apart from a few taxes of the state.
  • There are 5 Tax slab rates that form a union of GST. The tax rates are 0%, 5% ,12% ,18% and 28%. Rough and semi-precious stones carry a special tax rate of 0.25% and 3%.
  •  Alcoholic drinks, electricity and petroleum products do not come under the ambit of GST. The state government is under complete control of the above-said items for the questions of taxes.
  • It is mandatory for any business organization with a turnover of more than 40 lacs to get registered under the GST regime.

Supply of Goods and services

GST Supply Flow

Cost of Inputs

Final Sales Price

Collection of GST

A weaver selling clothes to a tailor at the cost of Rs 108 for every meter

Weaver assumes a GST charge of Rs 8

0

100

8

The tailor makes sale of the complete shirt to a retailer for Rs 270

Tailor pays GST of Rs 12

100

250

12

Retailer makes sale of the readymade short in his showroom at the cost of Rs 540/-

Retailers pay a GST tax of Rs 20.

250

500

20

The end user purchases the short for the value of Rs 540

No claim for tax  credit-customer pays for the entire GST

NA

NA

Total is Rs 40

The spirit of entrepreneurship is extending across the global economic boundaries. If you are considering a GST registration of your company, partnership, proprietorship or start up, then there is an important need to discuss the advantages of GST registration.

What are the various benefits that come from GSTIN Registration?

Apart from contributing towards the country’s future prosperity in matters of taxation, the GST registration brings in a host of financial incentives and long-term stability to the enterprise. Out of the many and multivariate benefits of GST registration let us now discuss a few salient ones:

  • The incorporated entity is legally recognized as a legitimate supplier of goods and services across the country.
  • Normal taxpayers can conduct interstate transactions on the supply of raw materials without any overlap of individual state tax reasons.
  • The taxes paid on the input phase of goods and services will be maintained in such a way that they can be used in the father payment of the GST value on the final phase of the supply of goods and services.
  • The firm on successful GST registration can legally be authorized to collect the taxes from the citizens and at the same time conduct a private sales operation or be in the act of service provisioning.
  • The firm after the GST registration is legally authorized to seek a tax refund on the previous taxes paid on the goods and services while in the act of purchasing any other goods or services.
  • The e-governance model led to eliminating bureaucratic red tape and all applications for GST registration done on e-commerce websites, providing a valuable time-saving instrument to small businesses and entrepreneurs.

GST is basically a consumption-dependent tax. States with increased goods consumption will be getting higher levels of revenues. The intergovernmental cooperation between different state governments and the central government is one of the vital factors for the future success of GST. The central government should provide effective IT infrastructure to every state government and compensation should be given for any perceived loss.

GST State Code List and Jurisdiction FAQs:

1. What is the concept of destination based tax on consumption?

In this concept, the tax would accrue to the relevant taxing authority that has jurisdiction over the place of consumption or place of supply.

2. Which of the already existing taxes come under GST?

Central excise duty, duties of excise, additional duties of excise, additional duties of customs, service tax, special additions duties of customs, state VAT, luxury taxes, entertainment tax, central sales tax, purchase tax, taxes on advertisements, taxes on lottery winnings, gambling taxes, central surcharges and cesses are all included under GST.

3. Which authority administers and levies GST?

CGST and IGST are levied by the central while SGST and UTGST will be administered by the centres in their respective states.

4. In case of GST related complaints, who can I contact?

The self-help GST portal will handle all complaints related to GST and is easy to place complaints as well as queries.

5. In case of disputes regarding GST, how are they resolved under the GST regime?

The constitution act of 2016 states that the good and services tax council will be establishing a system to sort out any disputes such as; • Between the government of India and one or more of the States • Between two or more states

6. Who would ideally need a GSTIN?

Since GST is a consumer-based tax, private individuals, corporations with over Rs.40 lakhs worth of merchandise, proprietorship and partnerships with market capitalism of over Rs. 20 lakhs and business individuals, NGO’s, etc. with a market capitalization of more than Rs. 20 lakhs would need a GSTIN. For additional details, you can refer to the official website.

7. What are the different jurisdictions classified as?

It is pertinent that you are registering yourself under the correct jurisdiction to ensure a hassle-free process along with availing additional benefits. To make the process easier, the government has classified the jurisdictions as per geographical locations which are classified under; • Division offices • Commisionerates • Range offices

8. DCan I file GSTR4A myself?/h3>
No. This cannot be filed by a taxpayer and is auto generated.

9. Can edits and changes be made to the GST form in case or errors or omissions?

Since it is a read only document, no changes can be made.

10. Where can I find information regarding jurisdiction?

You can find details regarding the jurisdiction on https://cbic-gst.gov.in/know-your-jurisdiction.html


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