Recently, India introduced the GST system to replace some of its messy indirect tax systems. Since it is a relatively new concept, a detailed discussion on it will go a long way to make people aware of this new system. So, in this article, we will talk about the GST system and also provide a list of GST state code in Excel.
Download Practice Workbook
You can download the practice Excel Workbook from here.
What Is GST?
Goods and Services Tax (GST) is an indirect tax on the provision of goods and services. It is a thorough, multistage, destination-based tax. It is thorough because it has replaced nearly all indirect taxes, with the exception of a few state taxes. Due to its multi-staged nature, the GST is levied at each stage of production. However, because it is a destination-based tax, rather than an origin-based tax like earlier ones, the government collects from the point of consumption rather than the place of origin.
What Is GST State Code?
The first two digits of the state code where the business entity is registered make up the GST number given to the taxpayer. The location of the company entity and where manufacturing is done is also indicated by the state code. As a result, it is the special code given by the GST law to each state in India. The government can categorize the registered taxpayers in each state using this code.
Why Do We Need GST State Code?
Short, numerical codes are advantageous since they help to avoid the confusion that results from writing an alphabetic GST state code in GST invoices and GST return data. Processing invoices, identifying the relevant GST liabilities, and submitting GST returns would all experience issues as a result. Similar to this, once taxpayers are aware of their jurisdiction, they can benefit much from transparency. They would be able to communicate their complaints to this jurisdictional officer, who would also be able to resolve any disputes regarding jurisdiction between the center and the state.
Description of GST State Code
As we know it by now, according to the GST law, every state has a unique numeric code. It will be incorporated with the Goods and Service Tax Identification Number(GSTIN). This is a 15-digit code unique to every taxpayer. A sample GSTIN code is as follows,
We will break it down part by part in the following sections.
According to the Indian Census 2011, the first two digits stand for the state code. Each state has its own code. For example, the state code of Delhi is 07, whereas that of Punjab is 03.
The next ten digits (AAAAA0000A) will be the Permanent Account Number (PAN) of a taxpayer. A 10-digit unique identity alphanumeric number called a “Pan Card” is given to Indians, typically to those who pay taxes.
Taxpayer’s Registration Number
The 13th digit (in this case 1) denotes the taxpayer’s registration in the same state under the same PAN.
“Z” is a default value.
5 is the check code. The check code will be the last digit. It could be a letter or a number.
Here, we have applied cell formatting to highlight the cells , to make the code break down discernible.
- Proforma Invoice Format in Excel with GST (Free Template)
- How to Remove GST from Total Amount in Excel (With Easy Steps)
- How to Create GST Rental Invoice Format in Excel
- Create Non GST Invoice Format in Excel (with Easy Steps)
- How to Make GST Export Invoice Format in Excel
List of GST State Codes in Excel
According to the GST law, every state has a unique numeric two-digit code. Here is a list of all the states with their GST codes. We have used cell formatting to highlight the state codes.
We used the Copy as Picture command to take this Excel snap of the GST state codes.
In this article, we have talked about the GST state code list and its entry into Excel. This will allow the users to have a comprehensive knowledge of the GST state codes and GSTIN numbers.