GST State Code List and Jurisdiction

Under the GST Act 2017, all businesses should have a unique GSTIN or GST registration number. Once registered, the businesses can collect the taxes under the GST state code from the customers or the service/goods receivers. The business can claim the tax paid to the Government as an ITC or input tax credit on the GST portal. 

What is the GST state code?

The first 2-digits of the GSTIN refer to the state code. It helps to identify the state registration of the business. You can use one GSTIN number for different branches in the same state. But if you have branches in other states, you have to register for GST in those states.

How to find your GST Jurisdiction?

The CBIC is the Central Board of Indirect Taxes and Customs. GST has removed the differences in taxation by different states and ensured transparency in the tax collections of each State.

• To find your TIN’s state jurisdiction, log in to the CBIC GST portal.
• Look under the ‘Know Your Jurisdiction’ tab.
• Enter the TIN number.
• The page will display the state, zone, division, range, etc.

What does GSTIN stand for?

GSTIN stands for Goods and Services Tax Identification Number. It is a unique 15-digit alpha-numeric number. Businesses should display the identification number GSTIN at the entrance.

• To issue the registration certificate, you will need to submit copies of the GST code list, proof of identification, PAN, office, and address proof.
• Companies will need to provide the Memorandum of Articles, Articles of Association, Incorporation documents, etc.,
• The department may take up to two weeks to process and approve your application.
• On approval, you will receive an alert on your email or mobile number.
• You will receive a User ID and a password which you should use when logging on to the GST portal for filing returns.

GSTIN Format:

The alpha-numeric 15-digit GSTIN identification number is as follows.

• The first 2 digits are state code in GST. 

• Your PAN forms the next 10 digits.

• The 13th digit is the number of registrations under GST. Note that the same PAN number is there for GSTIN registration in different states. 

• The nature of business with the Z alphabet (default value) is the 14^th digit.

• The alphanumeric check code is the 15^th digit.

Who has to get the GSTIN?

Under the GST Act of 2017, the following categories have to get GSTIN.

• Corporate bodies and businesses with Rs. 40 lakh turnover per annum if selling goods.
• Businesses, companies, etc., with Rs. 20 lakh annual turnover for goods in the Special Category North-East States
• Entities like proprietorship, incorporated companies, entrepreneurs, partnership concerns, etc., with Rs. 20 lakh market capital/aggregate turnover per annum if dealing in services.

Also Read: GST Number Search: 15 Digits Every Business Needs

Here’s the GST state code list:

Also Read: All you need to know about the GST State Code and how it affects you

GST Jurisdiction Pointers:

• If turnover exceeds 1.5 Cr, then the Centre and the State share the administrative control equally. 
• If the taxpayer’s annual turnover is less than 1.5 Cr, the state gets 90%. The Centre receives 10% administrative jurisdiction over all registrations under the state code list.
• Businesses can use the website https://gst.gov.in to determine the tax range and state jurisdiction.
• The registration process for a GSTIN needs the address of a place of business as it helps in assigning jurisdiction. 

For example, in the state-wise GST code, the 24 GST state code belongs to Gujarat, while the 06 state code is for Haryana.  If you have branches in Haryana and Gujarat, you have to register in both states under GST. The Haryana GSTIN starts with the 06 GST state code. The Gujarat GSTIN begins with the 24 state code.

Other Points:

• The GST portal helps to file complaints and find the relevant State GST Office. Sometimes the wrong details in PAN, PIN code, ward number, circle, etc, can cause errors. Contact the GST department for such cases.
• You can upload individual account page screenshots with the problem faced on the GST portal.
• The online portal also makes the free registration process easy.
• The GST portal quickly solves glitches, errors, or technical issues you may face.

Procedure for GST Registration:

The GST portal allows you to get your GST registration done for free and with a few clicks. Here’s how to go about it in the Form GST REG-01.

• Enter the GST portal and click on the ‘Registration’ ‘Services’ tab and ‘New registration’ tabs.

The form has two parts – Part A, B.

Part-A

• Next, use ‘Taxpayer’ and enter the details in the ‘I am a’ drop-down box.
• Choose the UT/ State and District drop-down options. 
• Enter the business name from the PAN database in the Legal Name of the Business box. 
• Enter PAN of proprietor/business in the Permanent Account Number field.

• Enter your business address, email address, and PAN-linked mobile number.

• Fill in the captcha and hit the ‘Proceed’ tab. You will get a TRN or Temporary Reference Number on your email address and mobile phone.

Part-B

• Log on to the GST portal using the ‘Services ’> ‘Registration’ > ‘New Registration’ tabs and use the TRN number to log in with the captcha box and click on ‘Proceed’.

• On the next page, enter the OTP sent on email and mobile to verify and proceed.

• The screen will display the My Saved Application page with the Action and  Edit options.

• The page has 10-options to choose from and requires you to enter the required details. Enter details of the business, promoter/authorized signatory, place of business, services/goods, the state,  Aadhaar. Verify before you Save and Continue with the application.

• Click Submit. Use the digital signature option to generate the ARN - Application Reference Number sent to your mobile and email address. You can check the status of the application over the next two weeks using this ARN.

Also Read: A Step-by-Step Guide to GST Registration Procedure in India

Penalty for not registering under GST:

Failure to register under the GST would mean a penalty of Rs 10,000/- or 10% of the tax payable.

Conclusion

We hope you’ve understood how to identify the GST state code from the GSTIN. You can use the GST state code list to match it with the state. Knowing the GST state code helps you in finding the state jurisdiction ward for GST. 

FAQs

1. How are GST disputes between states resolved?

The GST Act is governed by the council. They resolve disputes of goods and services disputes between the GOI and states or between 2 states.

2. How can I change state jurisdiction in GST?

GST jurisdiction is State-specific and cannot be changed. If you shift your business location to another state, you must close the GSTIN and apply fresh for the new State’s GSTIN. Various branches within the state may use the same GST number, while branches in different states will each have a GSTIN number unique to the state.

3.Can two businesses have one GST?

If business verticals are different, then the business must apply for different GSTINs under the same PAN details. Ex: If an automobile manufacturer also has a pharmaceutical line, they would need two GSTIN numbers. 

4. What happens if the GST application is rejected?

On rejection of the application for GST registration, the taxpayer can fill in Form REG-05. You can appeal to the GST Appellate Authority against the refusal, provided it is within three months of the order. 

5. How can I add a business place on the GST Portal?

Log on to the GST portal. Select the 'Services', 'Registration', and 'Amendment of Registration’ tabs. Click on the add tab under the 'Additional Place of Business' tab and enter the details of the additional address.

6. Who pays GST, the seller or buyer?

The GST is a value-added tax on services/goods sold in the domestic market. MRP includes GST paid by the buyer/customers.

7. Is GST calculated on MRP?

MRP is the maximum retail price or the highest selling price charged and calculated by the manufacturer on a particular service/goods sold in India. If anyone charges you GST on the MRP, then you can complain against the malpractice. Remember, the profit, distributor, and retailer margins are all included in the MRP.

8. How is the MRP rate calculated?

The MRP or maximum retail price = Cost of Product + transportation or CNF charges + Profit +Margins for distributor, retailer, etc., + the GST and other bundled expenses.

9. Is GST based on the net or gross income?

The GST is different from IT-Income tax calculations, which are income-based. Consider this example on services or goods worth Rs. 2,000 at the applicable slab of 18%. The net price is then 2,000 plus the 18% GST or 2000 X (18/100)) which is then the MRP of 2,000 plus 360 = Rs. 2,360/-.

10. What is the PTR value?

Retailer price, called the PTR, is an acronym for Price to Retailer. What the retailer offers to the customer is the MRP and is not to be confused with the PTR. PTR values include VAT.

11. How do I, after submitting, alter my GST application details?

Log in to the GST portal (www.gst.gov.in) using the ARN number or the GSTIN number user ID and password. Use the tabs of Services and Registration under it. Hovering on the registration tab will show the Amend Registration tab, which you need to click on, to amend the registration application form.