All you need to know about the GST State Code and how it affects you

What Is A GST State Code?

The GST registration requires every business to acquire a unique number. This unique number helps the business to collect GST from the beneficiary and also allows the business to avail input credit. The CGST Act 2017 has made it mandatory for all businesses to obtain GSTIN, then only they can get registered under GST.

The GST state code is different for every state, therefore the businesses need to be aware of their respective state codes while registering under GST. The first two digits of the GSTIN format represent the state code. The business firm needs to acquire the correct state code and then proceed for GST law. The GST state code list has all the state codes mentioned in it so that the businesses can check and confirm the correct code before applying for GST registration. In case the business provides the wrong state code, the person will have to apply for a refund by paying CGST or SGST. 

Importance Of GST State Codes

The businesses need to acquire the correct GST state code in order to file the GST registration form correctly. The GSTIN also depends on the appropriate state code. The GST state code list helps the businesses by providing them with the correct information about their respective state code. The GSTIN is crucial for all business firms, without it no person can carry on with their professional dealings. To acquire this GSTIN, the business professional has to provide appropriate state code while filling the GST form. Here are few more points that can help to understand the importance of GST state codes:

  • Each State has a different GST state code that makes it easier to understand from which part of the country the businessman belongs.
  • The GST state code also makes the location of the person accessible. For example, if the first two digits of the GST number is 37, then it is clear that the person belongs from Andhra Pradesh.
  • In case any foreign entity has a business in this country, the correct state code that provides information about the state in which the person has a business is very crucial.
  • Any wrong information about the state code makes it difficult for the businesses to receive the amount from the beneficiary.
  • If the business fills wrong state code, then they need to apply for a refund. The entire process becomes a mammoth task, therefore acquiring the correct knowledge about state code is always advisable. 

Steps To Know The Appropriate Jurisdiction

The businesses can check their jurisdiction by taking the help of the facility provided by the Central Board of Indirect Taxes and Customs (CBIC). It is crucial for the taxpayer to know their jurisdiction so that they can locate their jurisdictional office without difficulty. While filling the form for GST registration, the taxpayer needs to mention the jurisdictional details along with the state code. Along with the state code list, here are two steps that can assist the taxpayer to understand the ways by which the CBIC helps them know their jurisdiction:

  • After visiting the CBIC website, the ‘Services’ tab provides an option to the taxpayer that lets them know their jurisdiction from the menu.
  • The first step involves the taxpayer selecting the State.
  • In the second step, the person needs to select the zone, division and range.
  • Then they will get to know about the appropriate jurisdiction.

Click here, in case you face any issue while filling the state code or the jurisdiction. You can also acquire knowledge about the GST state code list and know more about your state code that can help the GST filing process to be much easier and hassle-free. It is obligatory for all businesses to acquire GSTIN and fill GST form. The process can be absolutely seamless if the person is well aware of the steps. It is extremely important to be aware of the GST state code list and its jurisdiction in order to keep your business away from unnecessary hassles.