GST State Code List and Jurisdiction Learn in Detail

The Indian Government has categorized regions according to the unique codes and geographic locations for specific states and union territories to simplify the GST process for taxpayers and businesses. These unique codes are known as GST state codes. The GST State Code list and Jurisdiction play an important role in the GST tax system and getting a GSTIN.

You can easily find the state of GST registration by checking the GSTIN because the first 2 digits are the state code. There was no way to identify and navigate the registration state, how complicated it would be without any guide. This written piece will provide information on various matters related to the GST State Code list and Jurisdiction.

What is the GST State Code?

GST state code refers to a rare 2-digit code given by the government to every state and union territory of India for GST registration purposes. It plays an important role in helping businesses establish where they are located. It also helps distinguish between sales made between states or within a state. You should always check the GST state code as it allows businesses to apply correct tax rates.

The GST State Code is also specified in the Goods and Services Tax Identification Number (GSTIN). It is a rare 15-digit number given by the government to business entities or an individual under the GST regime. Double-checking a GST state code helps prevent mistakes so the business can run smoothly without any hassle.

Where do you need the GST State Code List and Jurisdiction?

GST state code can be used in several areas, and it is as follows:

• Invoicing: When invoicing, businesses need to mention the GST state code as this helps in maintaining transparency and shows the customers the applicable tax rates.
• Registering for GST: After the GST registration, the GSTIN provides the state code which is important and helps determine the business jurisdiction.
• Filing GST Returns: Businesses need to include their GST state code when filing for GST returns. It helps in tracking the taxes by the tax authorities.
• Claiming Input Tax Credit (ITC): Businesses must use their state code when claiming ITC. As it ensures the credit is correctly applied on the state of registration.

How do you find out your GST State Code?

There are two ways to find your GST state codes:

Step 1

• Visit the CBIC website
• Click on the Services tab
• Click on ‘Know your Jurisdiction’
• Choose the state you are looking for from the GST jurisdiction list
• Identify and select the zone
• Next, you will have the commissioner zone
• Choose the division
• Select your range
• Pick and designate the localities encompassed within the range
• You can check which jurisdiction your business falls under

Step 2

• Log in on the GST portal
• Register through the homepage of the GST portal
• Select the search option and then ‘taxpayer’
• Enter your GSTIN
• The state and jurisdiction information will be present on the screen

GST State Code List and Jurisdiction in India

What is GST Jurisdiction?

A geographical territory or area covered by a specific GST authority is known as GST jurisdiction. Every union territory or state has its jurisdiction and within some jurisdiction, when a business is operating it is required to register under the GST authority. It is essential for assessing, collecting, and enforcing GST. Based on the geographical region, the jurisdictions have been classified such as pin codes of districts and specific locations ensuring that it is easier for professionals and businesses when registering for GST.

Classification of GST Jurisdiction

• State Jurisdiction: State Jurisdiction is applied to those that come within a specific state or union territory. This includes collecting and assessing State GST(SGST) AND Union Territory (UTGST). Every state has different jurisdictions, each led by a Jurisdictional Officer.
• Central Jurisdiction: Central Jurisdiction is in charge of deals involving different states and union territories. It involves the administration of Central GST (CGST) and Integrated GST (IGST). This also ensures that all the taxes are properly collected and shared among the states.

Why is GST Jurisdiction Important?

• Seamless Taxation Process

The merging of multiple indirect taxes into a single tax system is one of the main features of GST. This enhances the efficiency and integrates the tax process by reducing the load of compliance and simply tax reporting.

• Input Tax Credit

The input tax credit is another aspect of GST. Companies can request claims for the GST paid by it, on their inputs against the GST liability on the output. It helps in avoiding the effects of taxes and promotes a more cost-effective and efficient supply chain.

• Destination-Based Taxation

The tax is collected based on the geographical area of the final goods and services is known as a destination-based taxation system. It ensures that the revenue generated from the tax transaction goes to the state where all the goods and services are benefiting and consumed by the state.

• Online Tax Filling

The online tax filing is another element of the GST registration process. This approach technique increases transparency, decreases paperwork, and eases the process of tax-related matters like GST state codes and jurisdiction that can be easily found for GST. This helps promote more up-to-date and efficient tax administration.

• Fair Practices

Protecting consumer’s interests should be the main feature of GST registration. This ensures businesses benefit from the reduced tax rates and input tax rates to customers, which prevents unreasonable increases in prices and promotes customer welfare.

As discussed in this article, the GST State Code list and Jurisdiction are essential when building a business helping them follow the tax rules and prevent fines. The 15-digit GSTIN has 2 digits that are assigned to the state code. This 2-digit code is essential for GST registration and filing returns.

This world carries an important role for digits, and these codes are more like symbols and have the potential to unlock a transformative tax system. Check out Online Legal India for more such info about various legal matters and get assistance in GST registration processes. Contact them today.