GST States Codes and GST Jurisdiction: A Complete List

Each state and Union Territory (UT) in India has been given a two-digit state GST code to administer GST. These codes are a vital part of the GST Identification Number (GSTIN) and play a significant role in determining the source of supply of goods or services.

Every GST-registered taxpayer is given a 15-digit alphanumeric code called GSTIN. The state code is represented by the first two digits of the GSTIN, which is used to identify the state or UT that the taxpayer is a resident of. Because each state code is distinct, it is always clear which state or UT a taxpayer is a part of.

To guarantee effective compliance with India's GST rules and regulations, businesses must comprehend and appropriately use the state GST state codes and jurisdiction when receiving and using their GSTINs.

The GST state codes are extremely important under India's Goods and Services Tax (GST) system for businesses, taxpayers, and the government. Let's understand the main justifications for the importance of GST state codes:

• Used for Registering on GST Portal: As a taxpayer successfully registers themselves on the GST portal online, the state code makes for an integral part of the GSTIN which is assigned to the applicant by the tax authorities.
• Important at the time of GST e-Invoicing: When the taxpayers submit their invoice on the portal, GSTIN is required. This is to determine the application of IGST, CGST and/or SGST.
• Finding the Taxpayer's Location: The main idea to assign state code to each GSTIN is to locate the taxpayer's principal place of business. Given that the GST is a destination-based tax, it is crucial to understand where the supply of goods or services originated to identify the proper state or UT where the tax is owed.
• Calculating Tax: By applying the proper CGST (Central GST) and SGST (State GST) rates depending on the state code, the system can ensure appropriate tax calculations based on the location of the vendor and the recipient.
• Inter-State Transactions: The Integrated GST (IGST) applies to transactions involving the movement of goods or services between states. For a smooth flow of goods across state boundaries, the state code in the GSTIN aids in identifying the destination state for the allocation of IGST income.
• Avoiding Tax Evasion and Leakage: The usage of GST state codes assists in avoiding tax evasion and leakage. It minimises the possibility of revenue loss due to inaccurate reporting of the taxpayer's location. This ensures that the tax received at the time of supply is credited to the relevant state's revenue account only and there are no discrepancies.
• How to Claim an Input Tax Credit (ITC): When completing their GST returns, businesses can also claim an input tax credit for the taxes they paid on their purchases. Since the ITC has to be claimed basis State/UT where the entity is registered, the state codes are essential in determining whether or not a claim is valid.
• Simplifying Compliance: GST state codes assist in making taxpayer compliance simpler. Businesses may easily identify the GSTINs of their suppliers and clients by adopting a standardized code format, which streamlines the billing and record-keeping process.

Thus, to ensure the efficient operation of the GST system, GST state codes play a crucial role in the GSTIN. They provide correct tax calculation, location-based identification of taxpayers, monitoring of compliance, and revenue distribution, all of which contribute to the overall efficacy and efficiency of the GST regime in India and foreign countries.

Below is a list of all Indian states and union territories' GST state codes. Here’s the GST state codes list in a numerical order:

GST jurisdiction rules are the rules and regulations that specify the region or territory where a taxpayer is subject to the tax officer's or jurisdictional tax authority's administrative control. The administration and enforcement of the Goods and Services Tax (GST) in India depend heavily on these regulations. Let's investigate the main features of the GST jurisdiction rules:

• Location of Business: The location of a taxpayer's business is the main factor in determining jurisdiction. The primary location where the company keeps its books of accounts and from which it controls its entire operations is known as the principal place of business.
• Additional Places of Business: Companies may operate out of various sites, referred to as additional places of business. The jurisdictional tax authority for every additional place of business is chosen depending on its location, and each one must be registered separately under GST.
• Single Registration vs. Multiple Registrations: Depending on the type of business and how many locations it has, a taxpayer may have the choice of obtaining a single GST registration for all of its locations (within a state) or multiple registrations for each additional location.
• State Jurisdiction: Each state has its laws governing GST jurisdiction. The jurisdictional tax officer for a taxpayer is chosen based on the GST state codes list in the GSTIN. Each state and Union Territory (UT) has its tax administration.
• Inter-State Supplies: The Integrated Goods and Services Tax (IGST) applies to inter-state supplies of goods and services. As the central government collects the IGST and disperses it to the destination states, the taxpayer does not need to be concerned about numerous state jurisdictions in such circumstances.
• Appointing Proper Authorities: The GST authorities employ specific tax officers to supervise various kinds of taxpayers to ensure successful tax administration. These authorities are in charge of many different things, such as registration, auditing, issuing reimbursements, and making decisions.
• Change in Jurisdiction: Occasionally, a taxpayer's jurisdiction may need to be altered. This could happen due to a firm move or an organisational restructure. The taxpayer must submit a change of GST state codes and jurisdiction request to the appropriate tax authorities in such circumstances.
• Compliance and Audits: Taxpayers under a certain jurisdiction should follow the rules and specifications set forth by the relevant tax authorities. To verify that GST regulations are being followed, the jurisdictional tax officer has the right to conduct audits and inspections.
• Redress of Grievances: In case of any problems or disagreements relating to GST compliance or tax affairs, taxpayers may file a grievance with their jurisdictional tax authority.
• State GST and Central GST Jurisdiction: A taxpayer's jurisdiction includes both the State GST (SGST) and Central GST (CGST) authorities, depending on the nature of transactions, because the GST is a dual taxing system.

Identification of the proper taxing authority for each taxpayer, efficient tax administration, and promotion of GST compliance are all made possible by the GST jurisdiction rules. To avoid fines and to ensure smooth operation under the GST regime, businesses should be aware of these regulations so that they can correctly register their primary and additional places of business and adhere to the unique requirements of each jurisdiction.