GST State Code Explained
5 min read
By
TranZact Solutions Team
· Published
A GST state code is a two-digit number assigned to each Indian state and union territory. It forms the first two digits of a GSTIN and appears on every GST invoice and e-way bill. Getting it wrong is an avoidable compliance error that delays shipments and can trigger the wrong tax treatment.
A wrong state code on an invoice sounds like a small typo. In practice it can mean the tax split gets calculated wrong. Or an e-way bill gets rejected because the supplier’s and buyer’s state codes do not line up with the transaction.
What Is a GST State Code?
A GST state code is a two-digit numeric code assigned by the government to each Indian state and union territory. It forms the first two digits of every GSTIN registered in that state.
The same code is required on every GST invoice, e-way bill, and GST return. Comparing the supplier’s state with the place of supply decides whether a transaction is intra-state (CGST plus SGST) or inter-state (IGST).
State codes are set nationally and rarely change. Andhra Pradesh moved to 37 after bifurcation, and Ladakh got 38 as a new union territory. Code 25 was retired in 2020, when Daman & Diu merged into code 26.
Once you know your own state’s code and your customer’s or vendor’s, the same numbers apply across every transaction.
GST State Code List
These are the current GST state codes. Each code is the first two digits of every GSTIN registered in that state or union territory.
Code | State / Union Territory |
|---|---|
01 | Jammu & Kashmir |
02 | Himachal Pradesh |
03 | Punjab |
04 | Chandigarh |
05 | Uttarakhand |
06 | Haryana |
07 | Delhi |
08 | Rajasthan |
09 | Uttar Pradesh |
10 | Bihar |
11 | Sikkim |
12 | Arunachal Pradesh |
13 | Nagaland |
14 | Manipur |
15 | Mizoram |
16 | Tripura |
17 | Meghalaya |
18 | Assam |
19 | West Bengal |
20 | Jharkhand |
21 | Odisha |
22 | Chhattisgarh |
23 | Madhya Pradesh |
24 | Gujarat |
26 | Dadra & Nagar Haveli and Daman & Diu |
27 | Maharashtra |
29 | Karnataka |
30 | Goa |
31 | Lakshadweep |
32 | Kerala |
33 | Tamil Nadu |
34 | Puducherry |
35 | Andaman & Nicobar Islands |
36 | Telangana |
37 | Andhra Pradesh |
38 | Ladakh |
97 | Other Territory |
Code 25 (Daman & Diu) is no longer used. Older records may show 28 for Andhra Pradesh, but its current code is 37.
Manual State Code Entry vs Automated GSTIN-Based Entry
Billing software handles state codes in one of two ways. Ask any vendor which one theirs uses.
Error risk: manual entry risks a typo in the two-digit code; automated entry pulls the code directly from the registered GSTIN.
Speed: manual entry adds an extra lookup step per invoice; automated entry skips it.
E-way bill rejections: manual entry is the more common source of a supplier or recipient code mismatch. Automated entry keeps both sides consistent with the GSTIN on file.
Update handling: either way, someone must update the party’s GSTIN record after a new registration or state change.
Manufacturer relevance: the risk grows with transaction volume. A manufacturer issuing dozens of invoices a day has more chances for a manual entry error than one issuing a handful.
How the state code decides your GST type
Read the first two digits of each GSTIN
Compare supplier state with place of supply
Same state: charge CGST plus SGST
Different state: charge IGST
Use the same codes on the e-way bill
Where GST State Codes Are Used
The same two-digit code shows up in four places on every transaction:
GSTIN. The first two digits of every business’s 15-digit GSTIN identify the state it is registered in.
Tax invoices. The supplier’s and buyer’s GSTINs carry their state codes. Place of supply follows GST rules, such as where the movement of goods ends. Comparing it with the supplier’s state decides CGST plus SGST or IGST.
E-way bills. Both the supplier’s and recipient’s state codes must be entered correctly. A mismatch can get the e-way bill rejected or flagged.
GST returns. State-wise codes are used to report inter-state and intra-state supply separately in GSTR filings.
Common GST State Code Mistakes
The same errors show up repeatedly on manufacturer invoices and e-way bills:
Using an outdated or incorrect code. A typo in the two-digit code can cause the wrong tax treatment to apply. This can happen even if the rest of the invoice is correct.
Mismatched supplier and recipient codes on an e-way bill. If the codes entered do not match the actual GSTINs, the e-way bill can get rejected or held up at a checkpoint.
Confusing a similar-sounding state’s code. States with similar names or adjacent numbers get mixed up when entered manually without a lookup reference.
Not updating billing software after a new registration. A business may register a new GSTIN in a different state. If its billing system isn’t updated, it keeps issuing invoices under the wrong state code.
Assuming the buyer’s billing and shipping state are the same. For determining IGST vs CGST plus SGST, what matters is the place of supply, which is not always the same as the shipping address.
Are your invoice and e-way bill filled in separately, with someone typing the state codes by hand each time?
How TranZact Handles GST State Codes
Your invoice and your e-way bill should carry the same state codes. When they are filled in separately, a mismatch is easy to make.
TranZact’s manufacturing AI software generates the e-way bill from the GST invoice, with e-invoice (IRN) in the same flow. This GST e-invoicing flow is available on all plans.
Accounting stays in Tally. Operations run in TranZact, with a one-way sync and no double entry.
TranZact does not replace your accountant’s judgment on place-of-supply edge cases. Those calls still need a person.
Want to see the GST invoice, e-invoice and e-way bill flow in TranZact? Book a demo and our team will walk you through it.
