Introduction
The GST State Code is a fundamental component of India’s Goods and Services Tax (GST) system, helping define tax jurisdiction and ensuring seamless tax administration. Each Indian state and union territory has been assigned a unique two-digit GST State Code, which is essential for determining a taxpayer’s location, tracking transactions, and ensuring compliance. A thorough understanding of GST State Codes is necessary for businesses to stay compliant while filing returns, generating invoices, and processing transactions.
What is a GST State Code?
A GST State Code is a two-digit identifier assigned to every state and union territory in India. This code forms the first two digits of the GSTIN (Goods and Services Tax Identification Number)—a 15-digit number issued to registered taxpayers.
For example, Maharashtra has the GST State Code 27, while Delhi’s code is 07. These codes help determine the place of supply, ensure the correct application of tax rates, and define tax jurisdictions under the GST framework.
Importance of GST State Code in Tax Jurisdiction
GST State Codes are integral to defining tax jurisdiction and differentiating between intra-state and inter-state transactions under GST.
- Determining Applicable GST Type
- Transactions where the supplier and buyer are in the same state (same GST State Code) are considered intra-state, and both CGST and SGST are levied.
- If the supplier and buyer are in different states (different GST State Codes), the transaction qualifies as inter-state, and IGST is applied.
- GST Return Filing & Compliance
- Accurate GST State Codes are required for precise tax calculation and allocation in GST return filings.
- Errors in GST State Codes can lead to filing discrepancies, invoice mismatches, and potential penalties.
- Tax Jurisdiction & Audits
- GST authorities use GST State Codes to allocate jurisdictions for tax audits and assessments.
- Businesses operating in multiple states must register for GST separately in each state, based on the relevant GST State Code.
GST State Code List for All Indian States & UTs
Below is the GST State Code list, which helps in tax identification across different states and union territories:
GST State Code | State/Union Territory |
---|---|
01 | Jammu & Kashmir |
02 | Himachal Pradesh |
03 | Punjab |
04 | Chandigarh |
05 | Uttarakhand |
06 | Haryana |
07 | Delhi |
08 | Rajasthan |
09 | Uttar Pradesh |
10 | Bihar |
11 | Sikkim |
12 | Arunachal Pradesh |
13 | Nagaland |
14 | Manipur |
15 | Mizoram |
16 | Tripura |
17 | Meghalaya |
18 | Assam |
19 | West Bengal |
20 | Jharkhand |
21 | Odisha |
22 | Chhattisgarh |
23 | Madhya Pradesh |
24 | Gujarat |
25 | Daman & Diu |
26 | Dadra & Nagar Haveli |
27 | Maharashtra |
28 | Andhra Pradesh (Before Division) |
29 | Karnataka |
30 | Goa |
31 | Lakshadweep |
32 | Kerala |
33 | Tamil Nadu |
34 | Puducherry |
35 | Andaman & Nicobar Islands |
36 | Telangana |
37 | Andhra Pradesh (New) |
38 | Ladakh |
How GST State Codes Impact Businesses
For businesses, accurate usage of GST State Codes is critical for compliance, taxation, and logistics. Here’s how these codes affect different aspects of business operations:
1. GST Registration
- Companies operating in multiple states must obtain separate GST registrations for each state, using the appropriate GST State Code.
2. Invoice Generation & Tax Calculation
- The place of supply in an invoice determines whether CGST & SGST or IGST applies.
- Using an incorrect GST State Code may result in miscalculated tax liabilities and compliance issues.
3. E-Way Bill & Logistics
- GST State Codes are necessary for generating e-way bills while transporting goods across state borders.
- Any discrepancy in state codes can result in delays, fines, or penalties.
4. GST Returns & Input Tax Credit (ITC)
- If a GST State Code does not match the supplier or buyer’s details, Input Tax Credit (ITC) may be denied.
- GST returns, including GSTR-1, GSTR-3B, and GSTR-9, require the correct GST State Code to prevent compliance issues.
Common Errors in GST State Codes & How to Avoid Them
❌ Incorrect GST State Code in GSTIN
- Solution: Verify the GST State Code with the taxpayer’s registered state.
❌ Mismatched GST State Code in Invoices
- Solution: Ensure that the correct GST State Code is entered before generating an invoice.
❌ Incorrect State Code in E-Way Bills
- Solution: Double-check the state codes for both the sender and receiver to avoid transport-related penalties.
Conclusion
The GST State Code plays a pivotal role in tax jurisdiction, ensuring accurate tax collection, jurisdiction allocation, and compliance under India’s GST system. The GST State Code List serves as a reference for businesses to maintain tax accuracy in invoices, GST filings, and logistics. By ensuring the correct application of GST State Codes, businesses can prevent tax-related errors, enhance compliance, and avoid penalties.