State codes are two-digit numerical codes assigned to each state and union territory in India. They identify the origin and destination of goods and services under the Goods and Services Tax (GST) regime. State codes are essential for determining the correct tax rate, filing returns, and claiming input tax credits.
This blog will explore the state codes corresponding to different places of supply. It will also discuss mapping state codes to specific supply destinations, such as inter-state, intra-state, or international supplies. We will also examine the diversity in state codes for distinct places of supply, such as special economic zones, e-commerce operators, or online information and database access or retrieval services.
Defining State Codes
The GST state codes in India, derived from the 2011 Indian Census, are crucial in identifying the state or union territory where a taxpayer is registered under GST. These codes constitute the initial two digits of the 15-digit GSTIN (Goods and Services Tax Identification Number). For instance, Rajasthan’s state code is 08, and Delhi’s state code is 07.
Identification of specific state codes for various supply locations
JAMMU AND KASHMIR 01
HIMACHAL PRADESH 02
PUNJAB 03
CHANDIGARH 04
UTTARAKHAND 05
HARYANA 06
DELHI 07
RAJASTHAN 08
UTTAR PRADESH 09
BIHAR 10
SIKKIM 11
ARUNACHAL PRADESH 12
NAGALAND 13
MANIPUR 14
MIZORAM 15
TRIPURA 16
MEGHALAYA 17
ASSAM 18
WEST BENGAL 19
JHARKHAND 20
ODISHA 21
CHATTISGARH 22
MADHYA PRADESH 23
GUJARAT 24
DADRA AND NAGAR HAVELI AND DAMAN AND DIU (NEWLY MERGED UT) 26*
MAHARASHTRA 27
ANDHRA PRADESH(BEFORE DIVISION) 28
KARNATAKA 29
GOA 30
LAKSHADWEEP 31
KERALA 32
TAMIL NADU 33
PUDUCHERRY 34
ANDAMAN AND NICOBAR ISLANDS 35
TELANGANA 36
ANDHRA PRADESH (NEWLY ADDED) 37
LADAKH (NEWLY ADDED) 38
OTHER TERRITORY 97
CENTRE JURISDICTION 99
Understanding the allocation of state codes in place of supply
Understanding State and Central Jurisdictions:
State jurisdictions fall under the assessment of respective State administration.
Central jurisdictions are administered directly by the Centre.
Demarcation Guidelines:
CGST Circular no. 21/2017 (20th September 2017) provides guidelines for jurisdiction demarcation.
For taxpayers with a total turnover below Rs.1.5 crore, 90% come under State administration, and 10% under Central administration.
Taxpayers with a total turnover above Rs.1.5 crore: 50% under State and 50% under Central administration.
Computer-Initiated Division:
The division of GST taxpayers is computer-initiated at the state level.
Stratified random sampling is employed, considering geographical location and type of registration.
Classification Hierarchy:
Jurisdictions under GST are classified into the following levels, hierarchically:
- Zone
- Commissionerates
- Division offices
- Range offices
Also Read: How Is The Place Of Supply Determined For Goods?
Conclusion
State codes corresponding to different places of supply are essential for ensuring compliance with the GST rules and regulations. They help in identifying the nature and location of supply, and the applicable tax liability. They also facilitate the smooth flow of input tax credits across the supply chain.
We have seen how to map state codes to specific supply destinations, such as inter-state, intra-state, or international supplies. We have also learned about the differentiated state codes for varied supply places, such as special economic zones, e-commerce operators, or online information and database access or retrieval services. We hope this blog has helped you understand the concept and significance of state codes in GST.
Frequently Asked Questions(FAQs)
Are state codes uniform across all transactions?
State codes provide uniformity in applying GST across the country, facilitating the smooth flow of tax credits and revenue.
Do state codes impact compliance with GST regulations?
State codes are essential for compliance as they help businesses adhere to specific rules, rates, and exemptions prevalent in each state.
Can state codes change over time?
State codes generally remain constant, but any changes would be communicated by the government through official channels.
Where can I find the complete list of GST state codes?
The complete list of GST state codes is usually available through official GST portals or government publications.
