What is The GST State Code?

GST State Code List – A state code is assigned to each Indian state. This aids in determining the location of a company or taxpayer. Because it’s a two-digit number, the GST State Code list is made up of such digits for all Indian states.

The code is fixed and small, which reduces the chances of errors while completing GST returns and processing GST invoices. The state code of GST is represented by the first two digits of the GSTIN (Goods and Services Tax Identification Number). For example, the main two digits of GSTIN 08AAEPM0122C1Z8 indicate that the company is located in Rajasthan. Overall, a GSTIN is a 15-digit alphanumeric unique number assigned to a GST-registered person.

What is the Use of The GST State Code?

This GST Code assists the government in determining whether IGST, SGST, or CGST should be charged to a taxpayer or business organization. The client’s state code of GST will be determined using the buyer’s goods and services tax number, which is presented in the “Place of Supply” section of the GST invoice. If the state codes of the customer and supplier disagree, the IGST will be applied. SGST and CGST will be levied if the two-state codes are comparable.

A taxpayer will often use the code lists while registering for GST and inputting invoice data 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.”

The state code precedes the goods and repair tax number (GSTIN). The country code is the first two numbers of GSTIN 08AAEPM0111C1Z8, which starts with two “08” digits of the Rajasthan country code.

To determine whether IGST or CGST and SGST would be levied, a “delivery zone” or “place of supply” is necessary. IGST will be charged if the Supplier State Code and the “Place of Supply” country code are different, while CGST and SGST will be levied if the Supplier State Code and the “Place of Supply” country code are the same.

List of GST State Code

Here is the list of State Code:

Note that prior to January 26, 2020, Daman and Diu’s GST state code was 25.

Conclusion

GST offers several benefits to small and medium-sized enterprises, including simplicity of use, digitalisation, and simplified processes. Many would-be entrepreneurs may simply transform their ideas into enterprises. Small business owners can prioritise expansion and growth activities with better access to the national market over state-by-state tax reduction strategies. than state-by-state tax reduction tactics.