For representing a state & union territories in GST there are new numerical state code for every state & union territories, normally we use alphabetic code like DL, UP, RJ, etc. but in GST state code are numerical like “07” for Delhi, “09” for Uttar Pradesh, “27” for Maharashtra etc.

There could be a spelling error in writing alphabetic state code in GST Invoice & GST Return data which may cause problem in processing invoice & finding correct GST liabilities & also in filing GST Return but if codes are small & fixed so there are less chances of mistakes in mentioning state through such codes. In GST, the government has provided a list of numerical state code of every state.

Where we need State Code in GST?

In GST state code is used in:

• GST Identification Number (GSTIN) &
• in identifying “Place of Supply”

1. GSTIN starts with state code; first 2 digits are state code for example in GSTIN 08AAEPM0111C1Z8 starting 2 digit “08” is state code of Rajasthan.
2. “Place of Supply” is required to find whether IGST will be charged or CGST & SGST will be charged. If Supplier State Code & “Place of Supply” State code is different than IGST will be charged & if Supplier state code & Place of Supply state code is same than CGST & SGST will be charged.

For example:

• Supplier State code is “08” and place of supply is “09” then IGST will be charged in invoice.
• Supplier State code is “08” and place of supply is also “08” then CGST & SGST will be charged in invoice.

In GST Invoice under place of supply field state code is mentioned. Supplier & buyer state code is identified from first two digits of their GSTIN and accordingly IGST or CGST & SGST/UTGST are charged.

Here is the List of State Code under GST: