Know Your GST Jurisdiction With the Help of the State Code List

For hassle-free implementation and management of GST in Pan India, Central Government assigned codes to different geographical regions. These codes are known as GST State codes. 

GST State code plays a very crucial role in GST. It defines the taxpayer’s jurisdiction, which is important for the proper bifurcation of CGST, SGST, and IGST. It makes the processing of applications, returns, and assessment procedures. 

The following sections will help you understand GSTIN, GSTIN’s format, the state code, its importance, the process of knowing the jurisdiction, and more. 

Did you Know? Before 26 January 2020,  The GST State code of Daman and Diu was 25. But later on, when Daman and Diu merged with Dadar and Nagar Haveli, GST Council decided to change the GST state code to 26. 

What is GSTIN?

Before understanding the GST State code, it is important to know GSTIN. When a taxpayer is registered under GST, a 15 digits unique identification number is allotted. This identification number is called Goods and Service Tax Identification Number (GSTIN). The taxpayer has to mention GSTIN in every document. 

Following are the benefits of GSTIN

• It provides legal recognition to the goods and service providers. 
• Facilitate registration on e-commerce websites like Flipkart, Amazon, etc.
• GSTIN facilitates availing input tax credit.  

​​​​​Also Read: What is EWay Bill? How to Download the EWay Bill in PDF Format?

Who Needs to Apply for GSTIN?

The following class of taxpayers must apply for GSTIN. 

• The taxpayer whose annual aggregate outward supply (sales) in a year is ₹40 lakhs or more, in the case of the supply of goods. 
• In the case of the supply of service, the taxpayer is required to get GSTIN if the aggregate annual outward supply is ₹20 lakhs or more. 

A taxpayer not covered under the above list can voluntarily register under GST.

Procedure to Apply GSTIN  

The taxpayer can apply for GSTIN from the GST portal. The following details and documents are required to be submitted. 

• Business name
• Valid mobile number and email id
• PAN
• Aadhar details (In case of an individual)
• Photographs
• Business registration
• Address proof of place of business
• Valid bank account details 
• Authorisation form.

The application is made into two parts, in the first part, fill in the basic details, and a one-time password will be sent to the mobile number and email address for verification. After completion of the verification stage, proceeds with the second part of registration and upload the required documents. GST officer may ask for further details. When the officer is satisfied with the provided details and documents he will approve the application and a GSTIN will be allotted. 

Also Read: GST Invoice – Learn About GST Invoice Rules And Bill Format

Format of GSTIN

The unique 15-digit GSTIN is an alphanumeric combination. It is specifically structured to provide details about the taxpayer’s PAN, state of business, etc. For better understanding let’s break down the GSTIN format: 

• The first 2 digits represent the state code.
•  GSTIN is PAN-based, thus next 10 digits are the PAN of the taxpayer.
• The next digit shows the number of GST registrations in a state.
• The 14th digit is “z”.
• The last digit is the “check code” which could be an alphanumeric character.
• An example of GSTIN could be ‘18AABCU9603R1ZM’.

What is a GST State Code?

As we know from the previous section that the first two digits of the GSTIN are State codes. The main purpose of the GST state code is to identify the headquarters of the taxpayers. The taxpayer must provide details about the place of the establishment at the time of applying for GSTIN. Each State and Union territory has a unique code. A taxpayer can open many branches in the given state on a single GSTIN. But a separate GSTIN is required if the branch is opened in a different state. The main purpose of the State code is:

• To identify the location of business premises. 
• Different states have different GST rules thus state codes will help in the segregation of transactions based on states code.
• Proper calculation of CGST, SGST, and IGST. If the seller and buyers belong to the same state code, CGST and SGST will be calculated. If they belong to different states, IGST will be calculated.  

Also Read: Things You Need to Know About GST Explained in Details

The List of State-wise GST Codes

Following is the GST State Codes list.

Before 26 January 2020,  The GST State code of Daman and Diu was 25. On the merger of Daman and Diu with Dadar and Nagar Haveli, State code 26 is allotted.  

Know Your Jurisdiction Under GST

The GST taxpayers are divided into different jurisdictions. This division facilitates the assessment and resolution of any disputes. The respective officer of the jurisdiction will handle the respective cases and disputes. 

Under GST, there are two types of jurisdiction. 

• Central jurisdiction is under the administration of the central government. 
• State jurisdiction is under the control of the state government.  

These jurisdictions are further divided into the following levels:

• Zones
• Commissionerates
• Division offices
• Range offices.

How are Jurisdictions Decided?

The GST Council has led down the following manner for deciding the taxpayer’s jurisdiction. 

• As per circular no. 21/2017, 90% of the taxpayers, whose total annual turnover is less than ₹1.5 crores, will be under the control of the state government.
• The 10% of the remaining taxpayers will be under the central jurisdiction. 
• In the cases where total annual turnover exceeds ₹1.5 crores, 50% will be under the administration of Central jurisdiction, and the rest 50% will be under the control of the State government. 

Also Read: GSTR 9: Annual Return Filing, Format, Eligibility and Rules

Applicable Jurisdiction for GST

The taxpayer can find out about the applicable jurisdiction by visiting the State GST website and CBIC’s dedicated website for “Know your Jurisdictio.”. Let’s look into the steps. 

• State jurisdiction: While applying for the GSTIN, the taxpayer had mentioned the State of the place of business. The taxpayer can refer to the starting 2 digits of GSTIN, which denotes the GST State Code. Visit the website of the respective State’s GST website and search for jurisdiction. The site will give a proper and systematic list of Zones, Divisions, wards, etc.
• Central Jurisdiction: The Central Board of Indirect Taxes has a dedicated site for finding jurisdictions. Following steps to be followed:

• Visit the website https://cbic-gst.gov.in/cbec-portal-ui/?knowYourJuris
• Select the state from the list of states appearing on the screen.
• Now select the applicable zone.
• After selecting Zone, the list of Commisionerate will appear. Select the applicable Commisionerate. And then select Sub-Commissionerate.
• Now, the list of jurisdiction ranges will appear.

Conclusion:

This was all about GSTIN, GST State Code, and GST Jurisdictions. Now you know how the GST state code is important in GSTIN and how to find applicable jurisdiction. The geographical bifurcation of India helps in the effective management of GST. The disputes are addressed at a reasonable time, and respective jurisdictions handle the processing of returns and assessments. You can easily find the state code from the given GST State Code list. 
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