What is the full form of GST?
GST full form is Goods and Tax service Tax. It combines many different taxes into one, simplifying it for businesses and customers. GST is applied at every stage where something is put into a product or service, from its creation to when it is sold. One important aspect of the GST System is the GST state code, needed for proper location of the taxpayer in the country. It assists in determining in which State goods or services are rendered, which is very important for tax purposes and compliance.
In this blog, we are going to discuss the importance of GST state code and provide an extensive list of GST State code covering all states of India.
What Are GST State Code?
GST state code refers to code which is used to specify the state or region of the taxpayer. It is a part of tax identification number that is specifically allocated for goods and services in that state and is supposed to be used for all GST transactions. The state code is assigned to each state and UT in India as it greatly simplifies the taxation system for businesses.
The structure of the GSTIN is as follows:
- Two (2) numbers for the State Code.
- A Permanent Account Number (PAN) consisting of 10 characters.
- An Entity Code which consists of 1 character.
- A Number consisting of 6 digits.
For example, if the state has a GST code 27, any business under that state will have a GSTIN starting with “27” which is followed by PAN and other relevant digits.
Comprehensive List of GST State Code
GST State Code |
State Name |
GST State Code |
State Name |
|
01 |
Jammu and Kashmir |
21 |
Odisha |
|
02 |
Himachal Pradesh |
22 |
Chhattisgarh |
|
03 |
Punjab |
23 |
Madhya Pradesh |
|
04 |
Chandigarh |
24 |
Gujarat |
|
05 |
Uttarakhand |
26 |
Dadra and Nagar Haveli and Daman and Diu |
|
06 |
Haryana |
27 |
Maharashtra |
|
07 |
Delhi |
28 |
Andhra Pradesh (Before Division) |
|
08 |
Rajasthan |
29 |
Karnataka |
|
09 |
Uttar Pradesh |
30 |
Goa |
|
10 |
Bihar |
31 |
Lakshadweep |
|
11 |
Sikkim |
32 |
Kerala |
|
12 |
Arunachal Pradesh |
33 |
Tamil Nadu |
|
13 |
Nagaland |
34 |
Puducherry |
|
14 |
Manipur |
35 |
Andaman and Nicobar Islands |
|
15 |
Mizoram |
36 |
Telangana |
|
16 |
Tripura |
37 |
Andhra Pradesh (Newly Added) |
|
17 |
Meghalaya |
38 |
Ladakh (Newly Added) |
|
18 |
Assam |
97 |
Other Territory |
|
19 |
West Bengal |
99 |
Centre Jurisdiction |
|
20 |
Jharkhand |
Example of GST State Code in India
In India, each state and union territory is assigned a two-digit numeric code under the Goods and Services Tax(GST) system. These codes are referred to as GST state codes, which are required for facilitating effective GSTIN. A code is also required to uniquely identify taxpayers in India. Below are some of the examples of GST state codes in India:
- 06 GST State Code is Haryana
- 27 GST State Code is Maharashtra
- 07 GST State Code is Delhi
- 29 GST State Code is Karnataka
- 09 GST State Code is Uttar Pradesh
- 33 GST State Code is Tamil Nadu
- 36 GST State Code is Telangana
- 08 GST State Code is Rajasthan
- 23 GST State Code is Madhya Pradesh
- 03 GST State Code is Punjab
- 37 GST State Code is Andhra Pradesh (New)
- 32 GST State Code is Kerala
- 22 GST State Code is Chhattisgarh
How GST State Code Are Used In GSTIN
A business is issued a GSTIN (GST Identification Number) which is a 15-digit unique number issued in respect of his business.
Example GSTIN Format:
23ABCDE1234F1Z5
- 23 → Madhya Pradesh (GST State Code)
- ABCDE1234F → Business PAN
- 1 → Entity code
- Z5 → Checksum value
If a business is registered in Karnataka, then their GSTIN would look like:
29XYZPQ5678G1Z9
- 29 → Karnataka (GST State Code)
How to Utilize GST State Code
The user-friendly nature of the GST state code is evident as its utility spans across various features of the GST system. Some key areas of its use include:
1. Getting Registered Under GST
When you register under GST, during the time of GSTIN registration, the user is mandated to select his state code. This helps to pinpoint the geographical location of a taxpayer’s business for reporting and filing.
2. GST invoicing
Issuing GST compliance invoices or bills is to be marked with GSTIN. It will start with code of the gst state, hence ease of identification of the location of the business will not be a problem.
By way of an example, a GSTIN for a business in Maharashtra will start with 27 and be followed by the state code of Maharashtra. So a business with a GSTIN 27AABCU1234D1Z5, the code will be 27 for Maharashtra.
3. GST Return Submission Process
For the filling of the GST Returns, it is mandatory for businesses to provide the GSTIN, which has the state code. This assists in the classification of returns according to the state of the taxpayer.
4. Transactions Between States
When a business in one state deals with selling goods or services to a business in another state, the GST state code enables the identification of the transaction as inter-state. Such transactions are noted for the Integrated Goods and Services Tax (IGST) imposition.
5. Auditing Tax Compliance
Tax compliance and transaction monitoring to audit a business is always done by the tax authorities with the help of the state code. The tax department can ensure that businesses are rightfully taxed at their registered business location by using the analyzation of state based data.
Importance of the POS for GST
- Efficient Tax Compliance: The location of the taxpayer will determine the tax that is supposed to be remitted and integrated is made easy with the mechanisms of the GST state codes.
- Ease of Doing Business: The use of the state codes eliminates the complexities that businesses go through in knowing where to pay taxes and file returns.
- Reduces Error/Evades Fraud: A unique ID for that specific location greatly reduces the possibility of location related errors and fraud, which is the aim of the state code system.
- Audits Made Easy: With the help of state codes, tax authorities are able to conduct audits easily as they can easily check whether a business is practicing the GST rules or not.
Final Thoughts
The GST code system of states is one of the most important features of the GST architecture because it determines the proper collection and compliance of taxes. It helps ascertain the state of a business and is necessary for the transaction, report, and tax return filings.
These state codes are vital for doing business and even for taxpayers so that their activities are carried out without hindrance in relation to GST. Compliance with these codes ensures that a business meets the expectations of the regulations and does not suffer extensive scrutiny when filing returns or undergoing audits.
Following the revealing of the different GST state codes, businesses need to make sure their activities are based on the correct portions of the code to foster productivity and efficiency in the GST system of India.