As you all know, GST (Goods and Services Tax) was introduced in 2017, and also the classified category of business is required to urge a singular GST positive identification. The GST number could be a combination of several numbers, and also the first two numbers are fabricated from state code. rather like any registered dealer, states even have a documented state code for GST. During this article, we shall study the GST state code list.
An overview on GST
GST may be a tax that’s paid by customers once they purchase goods or services. The payers don’t pay these taxes directly, but they pay together with the value they spend during their purchase. Usually, the government charges the manufacturers with GST. The manufacturers thereafter add GST to their products at the time of selling the products.
What is the GST State Code?
Each state in India is given a state code. This helps in understanding where a business entity or taxpayer is from. it’s a two-digit number, and therefore the list of those numbers for all states in India constitutes the GST State Code list.
The code is fixed and tiny, which makes less the likelihood of mistakes within the filing of GST Returns and in processing GST invoices. The primary two digits of GSTIN (Goods and Services Tax Identification Number) reflect the state code of GST. For instance- just in the case of GSTIN 08AAEPM0122C1Z8- the primary two digits show us that the business is found in Rajasthan. All in all, GSTIN may be a 15 digit alphanumeric unique number given to a taxpayer who is registered under GST.
What is the use of the GST State Code?
This GST Code helps the govt. to check whether to charge IGST, SGST, or CGST on a taxpayer or a business entity. From the products and Services Tax number of a buyer, displayed within the “Place of Supply” Section of GST invoice, the state code of GST of the client will be obtained. just in case where the state code of both buyer and supplier is different, then IGST is going to be charged. If the 2 state codes are similar, then SGST and CGST shall be charged.
The code lists are often employed by a taxpayer while registering for GST and entering invoice details in GST Returns.
Where can we need State Code in GST?
GST state code is required for:
GST license number (GSTIN) &
At the Delivery Zone or in recognizing “Place of Supply.”
Goods and repair Tax number (GSTIN) starts with state code. the primary two digits are the country code, as an example, in GSTIN 08AAEPM0111C1Z8, which begins with 2 “08” digits of the Rajasthan country code.
“Delivery zone” or “place of supply” is required to work out whether IGST is going to be imposed or CGST & SGST are charged. If the Supplier State Code and “Place of Supply” country code are different, IGST is going to be charged, and if the supplier state code and state of supply code are identical, CGST and SGST are charged.
List of GST State Code
Here is the list of State Code:
|Serial No.||State Name||State Code|
|1||Jammu and Kashmir||1|
|25||Dadra and Nagar Haveli & Daman & Diu||26|
|27||Andhra Pradesh (Before division)||28|
|34||Andaman & Nicobar Islands||35|
|36||Andhra Pradesh (Added Newly)||37|
|37||Ladakh (Added newly)||38|
Note that prior to January 26, 2020, Daman and Diu’s GST state code was 25.
GST has various positive impacts for little and medium enterprises with numerous benefits, simple use, digital and simplified processes. Many prospective entrepreneurs can easily give their ideas wings and start their firms. Small business owners can specialize in expansion and growth plans with easier accessibility to the nationwide market without concentrating more on state-wise tax minimization strategies.