GSTIN is a specific tax identification number that is issued to each dealer registered with GST. The GST State Code reflects the first two digits of GSTIN.

Introduction

When you move to GST registration or when you sign up for a new subscription, many businesses would have received a 15-digit temporary ID or GSTIN (Property Tax Identification Number). Knowing the structure of the GSTIN is important for the business – making sure whose suppliers quote the correct GSTIN in their invoices, and making sure the person says his or her GSTIN with the appropriate invoices to customers – as the tax liability depends on this carefully before entering into an agreement.

The 15-digit ID has 2 digits that indicate state code; PAN number with 10 digits; Number 1 indicating registration number; and 2 numbers with default values ​​and checksum.

  • Every business organization is required to obtain a unique number under GST registration. This enables the business to collect GST from the recipient and to obtain a deposit credit. Therefore, the CGST Act 2017 makes it compulsory for the following persons to be registered under GST and receive GSTIN. Individuals or organizations with a combined profit of more than R40 lakh in the case of goods
  • businesses or individuals with a combined profit of more than 20 lakh rupees in the event of services
  • individuals or businesses with a combined profit in excess of Rs. 20 lakhs of supply in the event of hills or provinces in the northeast.

What is GST in India?

GST Meaning is as the Goods and Service Tax. It is an indirect tax that has replaced many indirect taxes in India such as property tax, VAT, service tax, etc. The Property Rates Act was passed in Parliament on 29 March 2017 and came into effect on 1 July 2017.

In other words, excise duty (GST) is levied on the supply of goods and services. The Customs and Excise Act in India is a comprehensive, multi-category tax, tax-deductible on all value additions. The GST is one of the country’s most indirect domestic tax laws.

Prior to the introduction of the Inventory Tax, the indirect tax structure in India was as follows:

Under the GST regime, taxes are levied on all properties sold. In the case of domestic sales, Central GST and State GST are charged. All international sales are charged to GST Combined.

Read moreGST registration process with LegalRaasta

What is the State Code Under GST?

To make it easier to know where a business owner or taxpayer came from, all the provinces of India have been provided with a State Code. It is a two-digit number and a list of such numbers of all Indian countries forms the GST State India code list. These codes have been modified and are smaller so that there is less chance of errors in filing GST Returns and processing GST invoices. The first 2 numbers of GSTIN reflect the GST State Code. For example, in GSTIN 08AAEPM0122C1Z8, the first 2 numbers (08) indicate that the business is in Rajasthan.

The GST State Code also helps the Government to assess whether it can charge IGST, SGST, or CGST to a taxpayer or business. From the buyer’s GSTIN, mentioned in the “Delivery Area” section of the GST invoice, the GST State buyer’s code is available. If the State Consumer and Provider Code differs, IGST will be charged. If the two-State codes are the same, SGST and CGST will be charged.

For example, if

  • The Supplier State code is “09” and the State Code retail area is “08” and IGST will be charged on the GST invoice.
  • Both the Supplier State code and the supply area are “09” and CGST and SGST will be charged on the GST invoice.

Where do we need State Code in GST?

In the GST state code, it is applied to:

  • GST Identification Number (GSTIN
  • In recognizing “Place of Supply”
  1. GSTIN starts with country code; The first 2 digits are the country code for example in GSTIN 08AAEPM0111C1Z8 which starts with the 2 digits “08” by the Rajasthan country code.
  2. “Delivery Location” is required to determine whether IGST will be charged or CGST & SGST will be charged. If the Supplier State Code and “Place of Supply” country code are different from IGST it will be charged and if the supplier state code and State of Supply code are the same as CGST and SGST will be charged.

In the GST Invoice under the country supply code supply area is mentioned. The supplier and buyer code is identified from the first two digits of its GSTIN and is subject to billing IGST or CGST & SGST / UTGST.

GST Codes state-wise

The first two digits reflect, as per the GSTIN format, the state code in which the business entity is registered under GST law. The state indicates the state where a business organization is based, carries its business and is thus registered under GST from that state.

In order to make it easier to recognize the company agency, each state in India is assigned a state code. Therefore, the GST state codes for different states, along with the alphabetical codes, are as follows:

Name of the states and territoriesState CodesAlphabetical Code
Jammu and Kashmir01JK
Himachal Pradesh02HP
Punjab03PB
Chandigarh04CH
Uttarakhand05UT
Haryana06HR
Delhi07DL
Rajasthan08RJ
Uttar Pradesh09UP
Bihar10BH
Sikkim11SK
Arunachal Pradesh12AR
Nagaland13NL
Manipur14MN
Mizoram15MI
Tripura16TR
Meghalaya17ME
Assam18AS
West Bengal19WB
Jharkhand20JH
Odisha21OR
Chattisgarh22CT
Madhya Pradesh23MP
Gujarat24GJ
Daman and Diu25DD
Dadra and Nagar Haveli26DN
Maharashtra27MH
Andhra Pradesh28AP
Karnataka29KA
Goa30GA
Lakshadweep Islands31LD
Kerala32KL
Tamil Nadu33TN
Pondicherry34PY
Andaman and Nicobar Islands35AN
Telangana36TS
Andhra Pradesh (New)37AD

Please note: Daman and Diu (25 DD) and Dadra and Nagar Haveli (26 DN) are combined in the territory of the Union so that State Code 25 will be converted to Current State Code 26 w.e.f. 01-08-2020. Due to the update in the State Code, new GSTIN with UT Code 26 will be given to all current active taxpayers who have GSTIN with UT Code 25.

User Guidelines

  • In the case of a seller, the seller’s code must be 10 characters long. If it is less than 10 characters, please give the prefix ‘0’ to create a 10-character merchant code.
  • GST No must be at least 15 characters long.
  • The first two digits of GST No will represent the state code according to the Indian Census 2011. Each province has two different digit codes such as “27” for Maharashtra and “10” for Bihar.
  • The next ten numbers of GST No will be the PAN number of the taxpayer.
  • The 13th digit shows the number of business registrations it has within the same PAN state. It will be an alpha-number (first 1-9 and then A-Z) and will be provided on the basis of the registration number of a legal entity (with the same PAN) with the same status.
  • The fourteenth digit is currently not in use and will therefore be a “Z” by default.
  • The final digit will be the check code that will be used to detect errors.
  • In the event of an error message “State Code does not match”, please refer to the first 02 numbers of GST No which is a state code. A list of Government codes is also provided below for submission.
  • Please use Google Chrome browser (Internet Explorer not supported) for this application.

 How to Know Your Jurisdiction?

While registering in the GST portal, the taxpayer needs to submit information about his or her GST mandate as well. You can get your GST capabilities as mentioned below-

On the GST site

  • After registering on the GST site, visit the https://www.legalraasta.com/gst/www-gst-gov-in/
  • Click ‘search’ and select the ‘taxpayer’ option.
  • Enter your GSTIN. All your details, as well as the country and the central location, will be displayed on the screen. Your authority will be shown in red.

Central Board of Indirect Taxes and Customs (CBIC)

  • The Central Board of Indirect Taxes and Customs (CBIC) provides a testing ground for your capabilities. Knowing the power you fall into helps a taxpayer finds a legal officer.
  • In addition, the taxpayer is required to provide his or her legal details when completing the GST registration form.
  • The steps involved in finding your strength are as follows:
  • Visit the CBIC website. Click the ‘Services’ tab and select’ Know your capabilities in the drop-down menu.
  • Select the status in the left column of the screen.
  • After that, select the zone, commissioner, division, and width details for your area.

What is GSTIN?

Goods and Services Tax Identification Number (GSTIN) is a 15-digit number that is issued to the applicant’s registration certificate if his or her application for GST registration is approved. This number is obtained by the applicant in the general area where the GST registration has been completed.

It is completely cost-free to receive GSTIN and to register for GST. Before GST was introduced, the respective state tax authorities gave a specific TIN number to all dealers registered under the state VAT law; GSTIN replaced it. A unique identification number known as GSTIN is now issued for business organizations registering under GST.

Why are you in search of a GSTIN?

GST registration is necessary for business organizations to benefit from the various advantages available under the GST regime. For companies with annual revenue exceeding Rs.20 lakh, a GSTIN is mandatory by the government. You need to file GST returns if you are a licensed dealer and make a deposit if there is a GST liability. Also, you can demand a refund through your GSTIN if the GST paid by you is more than the GST liability.

In addition, a GSTIN helps when you want to use a loan to finance your business. Business loans for businessmen are issued by financiers like Legalraasta to buy inventory, expand commercial space and develop their business. To be eligible for a business loan, your business should be registered with the Government of India and have a valid GSTIN.

GSTIN format

GSTIN is a 15-digit alpha number. It is a PAN-based number and specified by country. GSTIN ca is identified as follows:

  • First Two Digits – Represents State Code
  • Next Ten Digits – Display PAN or TAN
  • Number Thirteen – Represents the subscription value under one PAN
  • The fourteenth digit – Indicates the type of business (this is saved as a ‘Z’ by default. It is empty for future use)
  • Fifteenth digit – Alphanumeric characters showing test code

Example of GSTIN format

Suppose a business owner has GSTIN 06BBBBB1111B1ZE. Let’s determine the components of the GSTIN provided:

06 BBBBB1111B 1 Z E

First Two Digits – State Code (Haryana)

Next Ten Digits – PAN or TAN

The thirteenth digit – Represents the subscription value under one (1) PAN

The fourteenth digit – Indicates the type of business (this is saved as an ‘Z’ by default. It is empty for future use)

Fifteenth digit – Alphanumeric character showing test code (E)

Conclusion

Outside India, an exporter provides goods or services. The place of supply will be the buyer’s location. As the purchaser is located outside India, to enter information in GST Return, the exporter should choose GST State Code 97-Other Territory. If you need any other guidance related to GST registration and other GST related issues or consultation, feel free to contact us.

For more details associated with e-invoice, you can log in to our website services LegalRaasta.Our expert team will assist you in each part related to GST registration, Company Registration, Trademark Registration, and its services relatable. You can download our app which is easy to access in android mobiles LegalRaasta APP. Also, you can give us a call at 8750008585 and feel free to send your query on Email: contact@legalraasta.com