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If you find yourself confused about GST State codes list and what it is used for, this article is for you. Read along to know everything you need to know about GST, the GST state Code, and why we need a state code.
Most businesses need to know about the GST State code list while migrating a GST or getting a new registration or filing for a GST return. The GST ID structure that the businesses receive on enrollment is a 15-digit number, where the first two digits are the State GST Code. GST State Code is part of the TIN, and the GSTIN number, which is placed at the beginning of the numbers. This number is used by a taxpayer who falls under the GST and VAT laws while registering for GST and entering the invoice details while filing for GST returns.
Many people get confused and search online to find out the GST state code list to help them in GST processes. Here is a list of the GST state codes of all States in India prescribed, according to the Indian Census of 2011, and includes the newly added and fused territories.
| Sr. No. | State | State GST Code |
|---|---|---|
| 1 | Jammu and Kashmir | 1 |
| 2 | Himachal Pradesh | 2 |
| 3 | Punjab | 3 |
| 4 | Chandigarh | 4 |
| 5 | Uttarakhand | 5 |
| 6 | Haryana | 6 |
| 7 | Delhi | 7 |
| 8 | Rajasthan | 8 |
| 9 | Uttar Pradeshb | 9 |
| 10 | Bihar | 10 |
| 11 | Sikkim | 11 |
| 12 | Arunachal Pradesh | 12 |
| 13 | Nagaland | 13 |
| 14 | Manipur | 14 |
| 15 | Mizoram | 15 |
| 16 | Tripura | 16 |
| 17 | Meghalaya | 17 |
| 18 | Assam | 18 |
| 19 | West Bengal | 19 |
| 20 | Jharkhand | 20 |
| 21 | Odisha | 21 |
| 22 | Chhattisgarh | 22 |
| 23 | Madhya Pradesh | 23 |
| 24 | Gujrat | 24 |
| 25 | Dadra and Nagar Haveli and Daman and Diu | 26* |
| 26 | Maharashtra | 27 |
| 27 | Andhra Pradesh | 37 |
| 28 | Karnataka | 29 |
| 29 | Goa | 30 |
| 30 | Lakshadweep | 31 |
| 31 | Kerala | 32 |
| 32 | Tamil Nadu | 33 |
| 33 | Pondicherry | 34 |
| 34 | Andaman and Nicobar Islands | 35 |
| 35 | Telangana | 36 |
| 36 | Ladakh | 38 |
A GSTIN number is a 15 digit number that starts with a two-digit state code, ten-digit PAN number, the entity code, the alphabet Z, and the checksum digit. To know the state code, you must first find your jurisdiction under which your GST ID will be registered, and GST returns will be filed. You can see that from the Central Board of Indirect Taxes and Customs department’s website. The steps are as follows:
Apart from this, you can also directly find your State Code using your GSTIN. You can find the GST code for your state at the official GST link called the Goods and Services Tax Official website. You can go to the search taxpayer option, put your GSTIN or UIN number, and press the search. You can also search your GST Code details by using your PAN number instead of the ID. All the features of the taxpayer, including Central jurisdiction and tax jurisdiction, will be displayed on the screen.
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GST returns are an essential process under the GST law that has to be filed for each registration separately and regularly. The number of GST returns filed based on the type of taxpayer like a regular taxpayer, ISD, TDS deductor, composition dealer; everyone has a different list of returns to be filed. Each type has a different frequency and due date. To file the return, it is essential to have the State GST code.
As of 2017, GST is applicable in all states and union territories of India that have passed the state GST act from the midnight of June 30 and July 1, 2017, except the State of Jammu and Kashmir. GST is a state-based tax, and it differs from State to State. The state departments decide the GST amount by consulting the central departments. Thus the State Code helps determine the GST amount and the type of returns that have to be filed.
The Reverse Charge Mechanism (RCM) under GST is a unique taxation method where the responsibility to pay tax shifts from the supplier to the recipient of goods or services. In standard cases, suppliers collect and deposit tax, but under RCM, buyers are required to pay GST directly to the government. This mechanism mainly applies to specific types of goods, services, and transactions outlined by the government, helping to increase tax compliance. By placing the tax liability on recipients, the GST framework addresses certain compliance challenges in high-risk sectors or transactions involving unregistered suppliers.
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In the GST framework, the Reverse Charge Mechanism (RCM) shifts the tax payment responsibility from the supplier to the buyer or recipient. This mechanism ensures that the recipient pays GST directly to the government instead of the supplier collecting and depositing it. RCM typically applies to select goods and services, including specific imports, notified services like legal services, and transactions with unregistered suppliers. This shift helps streamline compliance in cases where tracking tax liabilities on numerous small suppliers would be challenging, thus enhancing tax transparency in these high-risk transactions.
The Reverse Charge Mechanism (RCM) remains a crucial tool for ensuring tax compliance under GST, particularly in sectors with high tax evasion risk. Current RCM provisions cover transactions like legal and transport services, imports, and supplies from unregistered dealers. The government frequently updates RCM coverage, ensuring only relevant sectors and services come under its scope. Businesses must stay informed about RCM updates and adjust accounting practices accordingly. In cases where GST on RCM transactions isn’t paid, compliance penalties are imposed. RCM continues to enhance tax accountability, especially in cases involving unregistered vendors or specific service categories.
Reverse Charge Mechanism (RCM) transactions are declared in specific sections of GSTR forms. In GSTR-1, registered suppliers list details of goods and services supplied under RCM to notify the government of such transactions. However, the tax on these transactions is reported in the GSTR-2 form by the recipient, who is liable to pay the GST. These filings help track and cross-reference transactions, ensuring that RCM obligations are fulfilled by both the supplier and recipient. Regular updates and accurate filing are essential to meet compliance standards and avoid any potential discrepancies in tax reporting.
The Reverse Charge Mechanism (RCM) in GST is applicable in specific scenarios where the tax payment responsibility shifts from the supplier to the recipient. It is generally applied to transactions with unregistered suppliers, specific notified goods and services (e.g., legal services, goods transport agency services), and certain imports. RCM also applies when receiving services from certain sectors or providers designated by the government. Businesses must verify if a transaction falls under RCM before making payments to avoid non-compliance, as failure to pay GST under RCM can lead to penalties.
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The “Time of Supply” under the Reverse Charge Mechanism (RCM) determines when GST must be paid by the recipient of goods or services. For goods, the time of supply is earlier of the date of receipt or the 31st day from the date of invoice. For services, it is the earlier of the date of payment or 61st day from the date of invoice. This timing framework helps ensure timely GST payment under RCM, aligning with the recipient’s liability for goods and services acquired from certain suppliers. Adhering to these deadlines is crucial for tax compliance.
Under the Reverse Charge Mechanism (RCM), businesses may be required to register for GST if they transact with unregistered suppliers or supply specific goods or services notified under RCM. Even if their annual turnover is below the GST registration threshold, recipients liable under RCM must register. This applies to entities receiving services from certain notified categories, such as legal and transport services. The registration rule ensures the tax burden is appropriately met by the recipient, enhancing tax compliance across transactions involving small and unregistered suppliers.
Under the Reverse Charge Mechanism (RCM), the recipient of goods or services is responsible for paying GST, not the supplier. This shifts the tax obligation from the supplier to the buyer, who must pay GST directly to the government. Typically, this applies to services from unregistered suppliers, imports, or certain notified services and goods. Businesses receiving these specified goods or services must calculate and remit GST as per RCM rules. By transferring liability to the recipient, the government improves tax compliance in sectors with numerous small suppliers or high evasion risk.
Under the Reverse Charge Mechanism (RCM), businesses can claim Input Tax Credit (ITC) on GST paid by the recipient. Once the recipient pays GST on RCM transactions, they are eligible to claim ITC, provided the goods or services are used for business purposes. This helps offset their overall GST liability. To claim ITC, recipients must ensure accurate records of RCM transactions in GSTR forms and proper tax payment. The ITC mechanism under RCM helps maintain the flow of tax credit while ensuring compliance for purchases where the supplier does not collect GST.
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The Reverse Charge Mechanism (RCM) includes two main types of reverse charges. The first type applies to transactions involving goods or services from unregistered suppliers, where recipients must pay GST. The second type involves specific notified goods and services, regardless of the supplier’s registration status, such as legal services, import of goods, and transport services. These types allow the government to monitor compliance for specific sectors and situations where tax evasion risks are higher. Understanding both types is crucial for businesses to determine RCM applicability accurately and maintain compliance.
The Reverse Charge Mechanism (RCM) has significant implications for businesses, shifting the tax payment obligation to the recipient. This change affects accounting, cash flow, and compliance requirements, as businesses must monitor transactions to identify RCM applicability. Additionally, businesses must register under GST even if their turnover falls below the threshold, adding to their compliance responsibilities. Proper record-keeping is essential, as errors can result in penalties. RCM also affects cash flow as recipients pay GST upfront, although ITC can be claimed. Compliance with RCM provisions helps businesses avoid legal consequences and maintain accurate tax records.
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