GST State Code List and 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:
JAMMU AND KASHMIR
DADRA AND NAGAR HAVELI AND DAMAN AND DIU (NEWLY MERGED UT)
ANDHRA PRADESH(BEFORE DIVISION)
ANDAMAN AND NICOBAR ISLANDS
ANDHRA PRADESH (NEWLY ADDED)
LADAKH (NEWLY ADDED)
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.
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?
2. Which of the already existing taxes come under GST?
3. Which authority administers and levies GST?
4. In case of GST related complaints, who can I contact?
5. In case of disputes regarding GST, how are they resolved under the GST regime?
6. Who would ideally need a GSTIN?
7. What are the different jurisdictions classified as?
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?
10. Where can I find information regarding jurisdiction?
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