Often, we can see that business entities operate their branches or verticals in multiple states within the country. According to the GST Laws, these business entities are required to obtain registration under GST in each state, resulting in numerous registrations as they expand their business operations into new states.
Say, XYZ Ltd. is engaged in the furniture trading business. The company is having its first outlet in Pune, the state of Maharashtra. Further, they also opened an outlet in Chennai, the state of Tamil Nadu. As the outlets are located in different states within India, the business entity or person should obtain GST registration in both states.
This shall be reflected in the GSTIN obtained by the entity, as the format of the GSTIN is as follows:
State Code – PAN of Person/Entity – Entity Code – Blank Digit – Check Digit.
This makes the same a 15-digit number, with the state code changing in accordance with changes in the states of the business. The state list shall be as follows:
| SL. NO. | STATE | STATE CODE |
| 1 | Andaman and Nicobar Islands | 35 |
| 2 | Andhra Pradesh | 28 |
| 3 | Andhra Pradesh (New) | 37 |
| 4 | Arunachal Pradesh | 12 |
| 5 | Assam | 18 |
| 6 | Bihar | 10 |
| 7 | Chandigarh | 04 |
| 8 | Chhattisgarh | 22 |
| 9 | Dadra and Nagar Haveli | 26 |
| 10 | Daman and Diu | 25 |
| 11 | Delhi | 07 |
| 12 | Goa | 30 |
| 13 | Gujarat | 24 |
| 14 | Haryana | 06 |
| 15 | Himachal Pradesh | 02 |
| 16 | Jammu and Kashmir | 01 |
| 17 | Jharkhand | 20 |
| 18 | Karnataka | 29 |
| 19 | Kerala | 32 |
| 20 | Lakshadweep Islands | 31 |
| 21 | Madhya Pradesh | 23 |
| 22 | Maharashtra | 27 |
| 23 | Manipur | 14 |
| 24 | Meghalaya | 17 |
| 25 | Mizoram | 15 |
| 26 | Nagaland | 13 |
| 27 | Odisha | 21 |
| 28 | Pondicherry | 34 |
| 29 | Punjab | 03 |
| 30 | Rajasthan | 08 |
| 31 | Sikkim | 11 |
| 32 | Tamil Nadu | 33 |
| 33 | Telangana | 36 |
| 34 | Tripura | 16 |
| 35 | Uttar Pradesh | 09 |
| 36 | Uttarakhand | 05 |
| 37 | West Bengal | 19 |
Now, we can say that the state code will bring a change in the GSTIN awarded by the GST Authority to its applicants. This is done despite the business entities holding the same PAN and branches being opened in different states. For this reason, the business should have a physical presence in such a state. Mere transactions or supply of goods or services or both by the person in different states shall not account for the business or supply in various states. This is because the entity does not have any physical presence or an office or outlet set up in such a state to run its operations or make supplies.
Say XYZ Ltd. is trading in furniture goods and has an outlet in Pune, Maharashtra. XYZ Ltd. was approached by Mr A, who is located in Bangalore, Karnataka, to purchase some exquisite furniture for his Bangalore home. XYZ Ltd. is delivering the same for Mr A at his house in Bangalore. This does not require XYZ Ltd. to register in Karnataka state, as there is no physical presence, outlet, or office setup by XYZ Ltd. there, making them ineligible for registration in a different state.
