The Goods and Services Tax (GST), implemented on 1 July 2017, has revolutionized India’s indirect tax structure by adopting a dual-tax regime: CGST (Central GST) and SGST (State GST) for intra-state transactions, and IGST (Integrated GST) for inter-state transactions. Central to this system is the Goods and Services Tax Identification Number (GSTIN), a 15-character alphanumeric code uniquely assigned to every registered taxpayer. The first two digits of this GSTIN are known as the GST State Code, which identifies the state or union territory of registration. These codes play a crucial role in determining tax jurisdiction, classifying transactions as intra-state or inter-state, generating e-way bills, filing GST returns, processing refunds, and distributing tax between the Centre and States. They also help in identifying taxpayers from Special Category States.
In this blog, we will explore what GST state codes are, their importance, and how they work.
What is a GST State Code?
A GST State Code is a two-digit code that helps identify each state and union territory. This code is an essential part of the GSTIN (Goods and Services Tax Identification Number), which is assigned to every taxpayer registered under GST.
Uses of the GST State Code
Each taxpayer under GST is assigned a 15-digit alphanumeric GSTIN, and the first two digits of this number represent the state code in which the business is registered. These state codes have the following uses:
- Essential for identifying jurisdiction: Each taxpayer’s GST Identification Number (GSTIN) begins with a two-digit GST State Code. This helps identify the jurisdiction where the business is registered. For example, a GSTIN starting with “27” indicates that the business is registered in Maharashtra, while “09” indicates that it is registered in Uttar Pradesh.
- Helps in determining the correct place of the supplier and the receipt’s state: The state code helps determine whether a supply of goods or services is:
- Intra-state (within the same state): Taxed with CGST + SGST
- Inter-state (between two different states): Taxed with IGST
By comparing the state code of the supplier’s GSTIN with that of the recipient, the system automatically determines the type of transaction.
- Import and Export of Goods: When businesses engage in interstate commerce or cross-border transactions, the state code enables the GST portal and the customs department to track the origin and destination of goods.
- Needed for E-way Bill Generation: When transporting goods worth more than ₹50,000, an e-way bill is mandatory. The first two digits of these GSTINs, which represent the GST state codes, determine whether the movement is intra-state or inter-state, affecting the type of tax to be applied and whether state-specific rules are triggered. Without the correct state code, the e-way bill generation may be rejected.
- Necessary for Filing GST Returns Accurately: During GST return filing (like GSTR-1 or GSTR-3B), taxpayers need to mention transaction details state-wise. The GST state code ensures that sales, purchases, and tax liabilities are correctly attributed to the correct jurisdiction.
- Helps in Input Tax Credit (ITC) Matching: While claiming Input Tax Credit, the system verifies the seller’s and buyer’s GSTINs. If there is a mismatch in GST state codes (say, the buyer enters an incorrect supplier GSTIN), it can lead to denial of credit or reconciliation issues
- Important for Cross-Verification by Tax Officers: GST officers often perform scrutiny, audit, and verification tasks using the GSTIN and its embedded state code. It helps them identify the appropriate jurisdiction and location of the business, which later allows them to cross-verify transactions with other state records, suppliers, or buyers.
- Used in GST Refund Processing: In refund claims, the GST state code helps the system determine which state jurisdiction is responsible for processing and approving the refund. It also assists in distributing the refunded tax amount between CGST, SGST, and IGST.
- Helps Identify Taxpayers from Special Category States: Certain states and union territories in India are classified as Special Category States under the GST (e.g., Himachal Pradesh, Uttarakhand, and the North-East states). The GST state code helps identify these taxpayers, who may be subject to the respective state rules, such as reduced turnover thresholds or different rates.
- Affects Tax Payment Distribution Between Centre and State: The GST system divides tax revenue between the Centre and State. The state code embedded in the GSTIN ensures that the SGST portion of the tax is allocated to the correct state government.
GST State Code List (2025)
Below is the updated list of GST State Codes for all Indian states and union territories as of 2025:
| State / Union Territory | Code |
| Jammu & Kashmir | 01 |
| Himachal Pradesh | 02 |
| Punjab | 03 |
| Chandigarh | 04 |
| Uttarakhand | 05 |
| Haryana | 06 |
| Delhi | 07 |
| Rajasthan | 08 |
| Uttar Pradesh | 09 |
| Bihar | 10 |
| Sikkim | 11 |
| Arunachal Pradesh | 12 |
| Nagaland | 13 |
| Manipur | 14 |
| Mizoram | 15 |
| Tripura | 16 |
| Meghalaya | 17 |
| Assam | 18 |
| West Bengal | 19 |
| Jharkhand | 20 |
| Odisha | 21 |
| Chhattisgarh | 22 |
| Madhya Pradesh | 23 |
| Gujarat | 24 |
| Daman & Diu | 25 |
| Dadra & Nagar Haveli | 26 |
| Maharashtra | 27 |
| Andhra Pradesh (Before bifurcation) | 28 |
| Karnataka | 29 |
| Goa | 30 |
| Lakshadweep | 31 |
| Kerala | 32 |
| Tamil Nadu | 33 |
| Puducherry | 34 |
| Andaman & Nicobar Islands | 35 |
| Telangana | 36 |
| Andhra Pradesh (After bifurcation) | 37 |
| Ladakh | 38 |
| Other Territory | 97 |
| Center / Central Government Jurisdiction | 99 |
Note: Some regions retain older codes for administrative continuity, even after mergers or reclassification, to ensure continuity and stability.
Structure of GSTIN and Role of State Code
A GSTIN is composed as follows:
- First two digits: GST State Code
- Next 10 digits: PAN number of the taxpayer
- 13th digit: Registration number under the same PAN within the state
- 14th digit: Defaulted to “Z”
- 15th digit: Check code for error detection
Example: In GSTIN 29ABCDE1234F1Z5
- The state code 29 denotes Karnataka.
This structure ensures each GSTIN is unique and allows easy identification of the state in which the business operates.
Updates and Changes in State Codes
The GST Council and tax authorities update GST state codes in line with such changes. For instance:
- Andhra Pradesh and Telangana, post-separation, were assigned distinct codes to avoid duplication and ensure transparency.
- Although Daman & Diu and Dadra & Nagar Haveli were merged into a single UT, they retain separate codes for GST purposes, especially for legacy records and system compatibility.
Conclusion
The GST State Code, a simple two-digit identifier, plays an important role in the GST regime. Businesses, whether small or large, must ensure their GSTINs contain the correct state codes, especially when dealing across state lines. A proper understanding and implementation of GST state codes help avoid costly errors, ensure legal compliance, and foster trust with clients and tax authorities.
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