Importance of State GST Code

Importance of State GST Code

State GST code is an important part of your Goods and Services Taxpayer Identification Number also known as GSTIN. It plays an important role in your trading. But in order to know more about it, it is important to first know a bit about GST.

Good and Services Tax (GST) was introduced on July 1st, 2017 under the guidance of Indian Prime Minister Shri Narendra Modi. The aim of GST is to overcome all diverse indirect taxation schemes and bring them under a common head. Earlier, the taxation policy would vary from one state to another where the authorities would designate each dealer with a unique Tax Identification Number. This has been successfully replaced by GSTIN.

The GSTIN is a unique identification number each dealer is assigned with. It comprises 15 digits where the first two digits represent the state GST code, the next ten PAN ID of the dealer, following two the number of registrations (where the second digit is always assigned Z to incorporate a determinate figure in the future) and the last digit to check for any error.

GST State Code

As the first two digits of GSTIN represent the GST state code, you can easily know about the code of your state with the help of these digits. With the help of the state code, you can file GST returns as well as raise invoices. Learn more about the GST state code to get a better idea about it.

Given below are the GST state codes for all the states and union territories of India.

Serial No. State Name and Union Territories GST State 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 Pradesh 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. Chattisgarh 22
23. Madhya Pradesh 23
24. Gujarat 24
25. Dadra And Nagar Haveli, Daman and Diu 26*
26. Maharashtra 27
27. Andhra Pradesh 28
28. Karnataka 29
29. Goa 30
30. Lakshadweep 31
31. Kerala 32
32. Tamil Nadu 33
33. Puducherry 34
34. Andaman and Nicobar Islands 35
35. Telangana 36
36. Andhra Pradesh 37
37. Ladakh 38

*The GST state code for Daman and Diu was 25 before 26th January 2020.

With the help of GST state code, therefore, the government authorities will find it easy to determine the location of a dealer no matter which state he comes from.

Changes After GST

Significant changes have been brought to the Indian indirect taxation system after the introduction of GST. The difference is all the more visible when one evaluates GST with the taxation system prior to it.

  • Earlier, different forms of indirect tax existed which would have made it difficult for the dealers as well as the authorities to compute the overall expense. With the introduction of GST, all these diverse taxation policies have been reduced to a single taxation system.
  • Transparency is another factor that has been introduced in the taxation system after GST. VAT, for instance, would only be charged on the sell of goods, and service tax for the services offered. This would create a muddle and confusion among the dealers. GST removes this obscurity and makes the system of computation more transparent with a single taxation system whereby tax is levied on both goods and services.
  • There would be different tax rates in different states of the country. This would be unjust for many traders who would incur different VAT charges just because they belonged to a different state. With the arrival of GST, a uniform taxation amount has been fixed for all the states of the country.

The state code for GST, therefore, has nothing to do with uneven taxation levied on the traders of different states. It only helps in determining your location as a trader and for other substantial functions.

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