GST jurisdiction is critical for the smooth execution of returns, filings, and assessments, as well as the availability of legal services. To facilitate GST registration for enterprises and professionals, the government has divided jurisdictions depending on geographical location, PIN numbers of separate locales, and unique districts.
When registering for GST registration, a taxpayer must indicate the jurisdiction in which the business is situated. As a result, understanding the jurisdiction becomes critical for the taxpayer.
What are the positive impacts of GST?
- Foreign investment is increasing:
With the implementation of GST, India has become a single market, and foreign investment has surged in the country. Because of their lower prices, commodities created in India have become much more competitive in the worldwide market, resulting in increased exports.
- Lower Taxes:
Prior to GST, there were several taxes and charges, which have since been replaced by Central and State GST.
- Reducing the cost of conducting business:
The Goods and Services Tax (GST) has altered VAT across India. We no longer have to pay varying amounts of tax in different states. Because it is a unified taxation system for all Indian states, we have already eliminated different taxes and charges on our enterprises.
The tax authority has begun to operate without corruption. Clarity has also emerged from allowing sales invoices to disclose the tax applied.
What is a GSTIN?
GSTIN or the Goods and Services Tax Identification Number can be defined as a 15-digit unique alphanumeric identification number assigned to every taxpayer who registers for GST. The initial two digits of GSTIN reflect the GST state code of the taxpayer. He or she utilizes the Goods and Services Tax state code table while enrolling for GST and inputting invoice data in GST Returns.
GST State Code Table
|Sl. No.||GST State Code||Name of the State|
|01||1||Jammu and Kashmir|
|25||26||Dadra and Nagar Haveli & Daman and Diu|
|27||28||(Before Division) Andhra Pradesh|
|34||35||Andaman and Nicobar|
|36||37||(Newly Added) Andhra Pradesh|
GST Jurisdiction Classification
Central Jurisdictions and State Jurisdictions are two types of GST jurisdictions.
State Jurisdictions are the jurisdictions that have been examined or are being assessed by the relevant State government. The Central Jurisdictions, on the other hand, are those jurisdictions that are directly controlled by the Central Government.
The State and Central jurisdictions are delineated in a certain way, according to CGST Circular No. 21/2017, issued on September 20th, 2017. According to the regulations, 90% of the taxpayers with an overall turnover of less than 1,50,000 INR would be vested with the state government. The other 10% will be vested in the Central Government.
On the other side, the State government would receive 50% of taxpayers with an aggregate turnover of 1,50,000 INR and more, while the Central Government will receive the other 50%.
The partition of taxpayers is computer-driven and performed on a state-by-state basis. This is accomplished by stratified random sampling, which takes into consideration the taxpayer’s location and kind of registration.
As a result, the GST jurisdictions are categorised into the following 4 tiers, in order of rank and size:
- Division Offices, and
- Range Offices
How to search for my GST Jurisdiction?
There are several methods for determining jurisdiction for a specific GSTIN or a taxpayer.
The taxpayer must be careful when applying for a GST registration to provide the complete and accurate address of his or her business location. It is critical data for precisely determining the jurisdiction when stating it in the application of GST registration and assists to prevent complications later on.
- How to search state jurisdiction?
Prior to getting GST registration, a taxpayer may be required to designate the appropriate State jurisdiction. To identify the department’s State jurisdiction, taxpayers must search the ward and circle on the corresponding State commercial tax, VAT, or Sales tax webpage.
All the states have dedicated web pages and pages that hold this information.
- How to search central jurisdiction?
In the same way that the taxpayer needs to choose his State jurisdiction, he must also determine his Central jurisdiction and range.
- The CBIC maintains a dedicated site to look for Central jurisdiction namely, “Know your Jurisdiction,” which is available via any browser at this internet URL.
- Choose the Zone and then click “+” next to the Commissionerate that relates to the business from the list.
- Then, in the following step, select the “+” icon next to the specific division description mentioned that applies more directly to the company location.
- Select from the range list that falls under the previously specified division. A user may read the explanation that displays when he selects each tile.
- The jurisdiction might be defined based on the beginning alphabet of the taxpayers’ names located in a certain pincode/s
After registering, a taxpayer can refer to the certificate granted to him (Form REG-06) at any time to determine his State Jurisdiction as well as Central jurisdiction.
How can I get in touch with the Goods and Services tax Jurisdictional Officer?
- Go to the Government’s GST website, select the ‘Services’ button, and then select the ‘User services’ tab.
- Click on the ‘Contacts’ button.
- Input your jurisdiction’s details, including Central or State, the identity of the tax official, the person’s designation, Commissionerate, Division, Range and other details.
- Input the captcha key and then press the ‘Search’ button.
Alternatively, rather than selecting ‘Contacts,’ you can also choose ‘Search Office Address.’
- Choose State or Centre as the category, then select the State from the provided drop-down menu and input the pin code.
- To view the results, select the ‘Search’ option.
In conclusion, filing for GST is critical for the business and its survival in the current competitive market. Hence, it is vital to understand the jurisdiction in which you plan to operate your business. The GST State Code helps taxpayers while enrolling for GST and inputting invoice data in GST Returns.
The GST or goods and services tax is an indirect tax on products and services sold for personal use. The tax is incorporated in the total price and is collected from the consumers at the moment of sale, with the vendor passing it on to the government.
GSTIN stands for Goods and Services Tax Identification Number, and it is issued to each individual who registers for GST. GSTIN is a 15-digit one-of-a-kind identifying number.
There are four GST types namely, IGST, SGST, CGST, UTGST.