Goods and Service Tax/GST State Codes
GST or Goods and Services Tax is a kind of Indirect Tax levied on any goods customers buy. This includes food items, electronic goods, daily basis items, transportation, travel, eating out, entertainment, etc. consumers pay this tax indirectly through every purchase.
The GST was formally introduced in India on 1st July 2017. Till then, the government charged the manufacturers with GST, and the manufacturers, in turn, added it in their bills to the customers in the name of sales tax and VAT.
If you are planning to start a business, you need to register your business entity on the GST portal, where you will get a temporary GST number. Once you get this, you need to submit the necessary documents, and after seven working days, you will get a permanent number if the submitted documents are correct.
You will not be allowed to operate until you get GSTIN (GST identification number). The GSTIN is a skillfully constructed number where each digit has a particular meaning. The government has given every state in the country a GST state code that will identify the Taxpayer and the business entity of the state.
What is the GST identification number?
- If a business needs to operate its entity, it should be registered in the Goods and Services Tax or GST portal to get the GST Identification Number or GSTIN.
- When you apply for a business code for GST registration, a fifteen-digit number is allotted to you in a certificate of registration.
- The GST Identification Number will be available on the common portal once your GST registration is complete.
How GSTIN helps businesses?
If you need to operate your business smoothly and efficiently without any hassles, you need to register the business entity on the GST portal. The government of India has provided every state with a GST state code to identify the business entity and the Taxpayer. It is a must for any business entity to get a GSTIN (GST Identification Number)for itself to get recognized by the government of India. The following are the advantages of GSTIN:
- It helps the business get the recognition of the government.
- The suppliers too will know whether the business they are dealing with is registered and is true to their information.
The number given to you after registration is no ordinary number; the digit code contains all the information about the state, the Taxpayer, and other important details.
What is the GST number format?
When you register your business in the GST portal, you will receive an alphanumeric number of 15 digits. It comes in the format of a PAN number that specifies the state you are operating from. The 15 digits are digits that carry detailed information about the business. this is what GSTIN can say about your business:
- The first two digits specify your state
- The next ten digits will specify the PAN number of the person or the business entity
- The 13th digit will specify the number of registrations done by the firm under a single PAN
- The 14th digit will specify the nature of your business and is denoted as “Z” as a default
- The 15th digit is the Alphanumeric character that denotes the check code.
GSTIN Format Example
If your business entity is successfully registered under the GST portal, you will get a 15 digit number, and here is the example of the GSTIN Format:
- 07 FFFFF0000B 2 Z9 and in this the first two numbers that is “07” is for the state code for Delhi
- The next ten digits, “FFFFF0000B”, will be the PAN or TAN number of the person or the business entity
- The 13th number “2” is the number of registration by the firm within the state under a single pan
- “Z” is the 14th number as a default, and it specifies the nature of your business
- The 15th number “9” is the check code, which an alphabet can sometimes represent.
What is the state code list under GST?
If your business is registered under GST, you will be provided with a 15 digit code, and the first two digits in this represent your state code. Below is the valid GST state code list India along with their Tax Identification Number or TIN:
- Maharashtra state code-TIN – 27 and the state code is MH
- Tamil Nadu GST state code– TIN – 33, and the state code is TN
- Gujarat GST code– TIN – 24 and the state code is GJ
- Karnataka GST code– TIN -29, state code – KA
- Telangana or TS state code– TIN-36, state code-TS
- Punjab state code– TIN-03, state code-PB
- Delhi state code– TIN – 07, state code – DL
- Rajasthan state code– TIN-08, state code – RJ
- Uttar Pradesh state code– TIN-09, state code – UP
These are some of the state codes provided by the government; there are also codes given to the union territories and others.
Why is the GST state code required?
GST has been able to centralize indirect taxes under a single authority. The businesses in India need to register on the GST portal to acquire the GST identification number or GSTIN. They are also required to submit their GST jurisdiction. So to find out which jurisdiction you belong to, you can find out from the GST portal while registering, or before that, you can visit the CBEC website and find out.
If you want to your jurisdiction while registering, you can follow the following steps:
- After registration, visit the GST homepage, Click on the “search” option, and choose the “Taxpayer. “
- Now enter your GSTIN, and the entire information will be on the screen
- Here you can find your jurisdiction marked in red.
If you want to find out on the CBEC website, then you can do so like this:
- Visit the CBEC home page
- Select your state where you intend to operate your business
- Select the zone, division, and range
- You will find your jurisdiction on screen
The GST state code helps the government get detailed information about your business and the state from which you operate, and what kind of tax must be levied on you or your business.
The GST has made India a nation that has one indirect tax making the whole market unified. Businesses, too, need to register themselves in the GST portal to get recognition from the government. There are different criteria for charging the GST, so it becomes more important to submit your details correctly on the portal. For any query about GST ready Tally on Cloud service visit Tallycloudhub.com.
When is a person liable for registering under GST?
If a person is trying to set up a business, he needs to register in the GST portal and get the GSTIN. Here are certain rules as to when you need to register on the portal:
- If your business is making a turnover of more than 40 lakh rupees on goods
- If you are an entity earning more than 20 lakh rupees on services
- If you are operating in the hilly or northern states and earning more than 20 lakh rupees by supplying goods.
If you fall into any of these categories, you need to be registered under GST on the GST portal. The portal will provide you with a unique number called the GSTIN.
How to determine the GST State Code?
If you want to find your GST state code, you need to check your GSTIN NO, where the first two digits represent the state. Or else you can check the list of GST State Code where you can easily find out the state code.