GST State Code List: Decode Your State’s Tax Identity Here!

Have you ever given a thought about what the first two digits of a GSTIN number indicate? They aren’t inserted randomly! They indicate the geographical region linked to a business’s GST registration. That’s where the GST state code list plays a vital role. It doesn’t matter if you create multiple invoices in a month, want to register for GST, or are processing returns; it’s crucial to identify your state code in all the scenarios. 

In this article, we’ll unpack the GST code list, why it matters, and how it’s used in practice. If you are dealing with multiple states, this should be your go-to manual. Keep reading to make sense of the GST code in minutes! 

What is the GST State Code List: Deep Dive into the Concept! 

GST code for states can be simply referred to as your business’s digital location under the GST regime. These standardized two-digit numerical codes are assigned to all the states and union territories across the country. The state code GST forms the initial two letters of GSTIN, i.e. Goods and Services Tax Identification Number (GSTIN), assigned to your business by the tax authorities. 

Understanding these codes isn’t just a need- it forms the crux of precision in invoicing, seamless return filing, and effortless compliance. Let’s Consider the 08 GST state code, which belongs to Rajasthan. It means if your business’s GSTIN begins with 08, it is registered in Rajasthan. 

Now that we have understood what the GST State Code List means, let’s move ahead to know where we need them. 

What is GST Jurisdiction: A Mini-Master Class! 

GST Jurisdiction outlines geographical and administrative zones under which the taxpayer is regulated to monitor compliance actions. Taxpayers whose turnover is less than ₹1.5Cr fall under state administration, while those above it are regulated by both state and central. 

Types of GST Jurisdiction 

Where Do We Need GST State Code List: Spot the Common Thread! 

1. GST Registration

• The 1st two letters that form state code GST help the system understand which state your business is located in. 
• Once the state is identified, the system assigns your business to the respective state jurisdiction or authority. 
• It also assists in segmenting your supplies as intra or inter-state. 

2. Generate Invoices 

• While creating invoices, the state code of both seller and buyer are identified to determine the type of tax to be applied. Consider the 09 state code for both buyer and seller, which means both are from Uttar Pradesh. In this case, intra-state, i.e. CGST and SGST, both apply. If the buyer’s code is 27 (Maharashtra), then Inter-state, i.e. IGST, applies. 
• Correct state code helps to avoid errors while filing returns and validating e-invoices. 
• GST state code list ensures appropriate data synchronization while auto-fetching GSTR-1 and GSTR-3B. 

3. Filing Returns

• It makes it easier to map your returns and tax payments. For example, GSTIN, starting with 03 GST state code, has returns linked to the Punjab GST portal. 
• It ensures the transaction data and invoicing details are auto-fetched accurately under the respective sections. 
• It helps eliminate return validation failures, potential GST notices, rejection of B2B invoicing data and more. 
• For businesses that transport goods or services across states, the codes must align with the ones mentioned in the GSTR-1 Filing. 

4. E-way Billing 

• E-way bills demand both supplier and recipient GSTIN, where the first two numbers help route the movement of goods and services. Let’s consider an example: if the supplier’s GSTIN begins with 07 state code (Delhi), and the buyer’s starts with 24(Gujarat), the e-way bill marks it as inter-state, requesting IGST. 
• It streamlines compliance requirements and helps businesses optimize supply chain operations. 
• GST state code on the e-way bill helps to instantly crosscheck the legitimacy of the transport of goods and services. 

5. ITC Matching 

• To match the Input Tax Credits (ITCs), the GSTINs of both supplier and recipient must show accurate codes. If you have entered the 09 state code instead of 07, it will cause a mismatch in the ITC reconciliation. 
• Businesses registered in multiple states have GSTINs reflecting the unique state codes. Here, ITCs can be claimed only for purchases made for a specific state. 
• GST state code list facilitates precision in tax reporting, audit-ready records, and appropriate allocation of tax credits. 

The need to understand state codes in GST isn’t just restricted to GSTIN registration but is important for compliance, invoicing, and more. Let’s explore the complete list of GST state codes next. 

GST State Code List: Decoding India’s Tax Geography in 5 Mins! 

GST state codes function like digital markers, uniquely identifying each Indian state in the tax system. They look small but have great significance, which we have already seen. Have a look at the image below and spot your GST state code. Discover which state your GST registration is tied to. 

5 Steps to Identify Your State Code GST with GSTN Portal!

1. Head to the portal and enter your login details.
2. Navigate to the homepage and complete your registration on the portal.
3. Click “Search” and Select “Taxpayer” 
4. Enter your GSTIN number 
5. All relevant details – like the GST state code list, jurisdiction, and more – will be displayed. 

Let’s Conclude

In this rapidly transforming GST landscape- even the 2-digit code can either guide you to stay compliant or even break it. GST state code list forms the basis of every process, right from creating invoices and e-way bills to filing returns and matching ITCs. 

So, next time you have your GSTIN, you know what is your state code and from where the compliance begins. Bookmark this guide and verify your state code GST to stay ahead of errors. 

Want to streamline compliance? Munim GST return filing can be the best match! Get Started today!

FAQs on GST State Code List

1. What is the 29 state code in GST?

29 refers to Karnataka in the GST state code list.  

2. What is the GST Code of Punjab? 

03 GST state code is used to identify Punjab. 

3. Which state’s code is 06? 

06 GST state code is used to identify Haryana. 

4. How to find state code in GSTIN? 

The first two digits of GSTIN identify the code of your state.