GST State Codes and Jurisdictions in India

The Goods and Services Tax (GST) introduced in India in 2017 revolutionized the indirect tax landscape. It streamlined various taxes into a single, unified system. A crucial component of GST compliance is the GST State Code and understanding its link to jurisdiction.

Understanding the GST State Codes

Every business registered under GST receives a unique 15-digit Goods and Services Tax Identification Number (GSTIN). The initial two digits of this number represent the GST State Code. This code acts as a geographic identifier, pinpointing the state where the business is registered.

For instance, a GSTIN with "07" as the first two digits signifies registration in Delhi. Here are some additional examples:

• 29: Karnataka
• 27: Maharashtra
• 06: Haryana
• 33: Tamil Nadu

Importance of GST State Codes

• GST Registration: During GST registration, businesses must provide accurate details, including their primary place of business. This information determines the state and central jurisdictions they fall under. The GST state code becomes an integral part of the assigned GSTIN.
• GST Return Filing: Businesses file regular GST returns, which often include details of Business-to-Business (B2B) invoices. These invoices require the buyer's GSTIN, and the GST state code embedded within it helps identify the buyer's location. This is crucial for ensuring the correct tax is levied and reflected in both the seller's and buyer's GST returns.
• GST Invoicing: Under GST regulations, accurate billing and e-invoicing are essential. Valid GSTINs of buyers, sellers, and consignees (if applicable) incorporate the relevant state codes. These codes help determine the location of the sale and consequently, the type of GST applicable (interstate or intrastate).

Incorrect use of GST state codes can lead to complications:

• Incorrect Tax Charged: If a seller mistakenly uses the wrong state code on a buyer's GSTIN while creating an invoice, it could result in charging the wrong type of GST (IGST instead of CGST and SGST, or vice versa). This can lead to tax discrepancies and potential penalties.
• Delayed or Rejected E-invoices: If a seller uses an inaccurate GST state code when generating an e-invoice (mandatory for certain businesses), the invoice reference number (IRN) might be rejected. This necessitates re-issuing the invoice with the correct code.

GST Jurisdiction

Along with the GST state code, understanding GST jurisdiction is equally important. Every business registering on the GST portal must specify their GST jurisdiction. The GST portal offers a user-friendly guide to assist businesses in determining their jurisdiction.

GST Jurisdictional Classification

GST jurisdictions are categorized broadly into central and state jurisdictions. The allocation of businesses to these jurisdictions depends on their annual turnover:

• Turnover below Rs. 1.5 Crore: Approximately 90% of taxpayers with a turnover below Rs. 1.5 crore fall under state jurisdiction. The remaining 10% come under central jurisdiction.
• Turnover above Rs. 1.5 Crore: For businesses exceeding Rs. 1.5 crore in turnover, 50% are placed under state jurisdiction, while the remaining 50% are under central jurisdiction.

Further subdivisions within these jurisdictions exist based on factors like size, location, and hierarchy. These sub-divisions typically include zones, Commissionerate’s, range offices, and division offices.

Finding Your GST Jurisdiction

There are two primary methods to locate your GST jurisdiction office address:

Method 1: CBIC Website

1. Visit the Central Board of Indirect Taxes and Customs (CBIC) website: https://cbic-gst.gov.in/
2. Go to the Services section and select "Know your Jurisdiction."
3. Choose the desired state and zone.
4. Proceed by selecting the Commissionerate, division, range, and finally, your specific locality.

Method 2: GST Portal

1. Login to the GST portal or register if you haven't already.
2. Go to "Search" and select "Taxpayer."
3. Enter your GSTIN.