What do the first two digits of a GSTIN represent?

The first two digits of a 15-digit GSTIN (GST Identification Number) represent the state code where the business is registered under the GST Act. For example, a GSTIN starting with '27' is registered in Maharashtra, '07' is Delhi, and '29' is Karnataka.

Why does Tally Prime require correct state codes?

Tally Prime relies on the customer's or supplier's state code to determine the type of GST to apply. If the supplier's state code matches your company's registration state, Tally applies CGST and SGST (intra-state). If the state codes differ, Tally applies IGST (inter-state).

What is the GST state code for Ladakh?

Following the creation of the Union Territory of Ladakh in 2019, it was allocated the new GST state code '38'.

How do I check the validity of a GSTIN?

A valid GSTIN is always 15 characters long. The first 2 digits are the state code (01–38 or 97), digits 3–12 are the PAN of the taxpayer, digit 13 is the entity number (1–9/A–Z), digit 14 is always 'Z', and digit 15 is a checksum character calculated using a Luhn-like algorithm. You can verify any GSTIN on the GST portal at www.gst.gov.in under 'Search Taxpayer'.

GST State Codes: Complete 28 States and 8 UTs List

Under the Goods and Services Tax (GST) system in India, every registered taxpayer receives a 15-digit GST Identification Number (GSTIN). The very first two digits of this number represent the State Code — a two-digit numeric code that identifies the state or Union Territory where the business is registered for GST purposes.

For accountants and bookkeepers, understanding GST state codes is not just a reference exercise. These codes directly govern whether a transaction attracts CGST + SGST (for intra-state supplies) or IGST (for inter-state supplies). An incorrect state code in a vendor or customer ledger in Tally Prime will generate the wrong tax on every transaction linked to that ledger — leading to mismatched GSTR-2A/2B, failed ITC claims, and potential GST notices.

Anatomy of a GSTIN: Understanding the 15-Character Format

Before diving into the full list, understanding the structure of a GSTIN helps you decode and verify any number on the spot:

Position	Characters	Meaning	Example
1–2	2 digits	State Code	27
3–12	10 characters	PAN of the taxpayer	AAACR5055K
13	1 character	Entity number at same address (1–9, A–Z)	1
14	1 character	Always "Z" (reserved)	Z
15	1 character	Checksum (alphanumeric)	5

Example GSTIN: 27AAACR5055K1Z5 — this belongs to a business registered in Maharashtra (state code 27), with PAN AAACR5055K.

How State Code Determines CGST+SGST vs IGST

When you raise a sales invoice or purchase invoice in Tally Prime, the software compares the state code of your company (the seller) with the state code of the customer/supplier:

Same state code (intra-state supply): Tax is split equally into CGST and SGST. For example, an 18% GST transaction becomes 9% CGST + 9% SGST.
Different state codes (inter-state supply): The full tax rate applies as IGST. An 18% transaction becomes 18% IGST, collected and deposited with the central government.
Union Territory supplies: Instead of SGST, UTGST (Union Territory GST) is levied for UTs without a legislature (e.g., Chandigarh, Lakshadweep). UTs with legislatures (Delhi, Puducherry, J&K) levy SGST.

Complete GST State Codes Directory (All 28 States + 8 UTs)

Below is the complete list of GST state codes for all States and Union Territories in India:

GST Code	State / Union Territory Name	Region Type
01	Jammu & Kashmir	UT (with legislature)
02	Himachal Pradesh	State
03	Punjab	State
04	Chandigarh	UT (without legislature)
05	Uttarakhand	State
06	Haryana	State
07	Delhi (NCT)	UT (with legislature)
08	Rajasthan	State
09	Uttar Pradesh	State
10	Bihar	State
11	Sikkim	State
12	Arunachal Pradesh	State
13	Nagaland	State
14	Manipur	State
15	Mizoram	State
16	Tripura	State
17	Meghalaya	State
18	Assam	State
19	West Bengal	State
20	Jharkhand	State
21	Odisha	State
22	Chhattisgarh	State
23	Madhya Pradesh	State
24	Gujarat	State
26	Dadra & Nagar Haveli and Daman & Diu	UT (without legislature)
27	Maharashtra	State
29	Karnataka	State
30	Goa	State
31	Lakshadweep	UT (without legislature)
32	Kerala	State
33	Tamil Nadu	State
34	Puducherry	UT (with legislature)
35	Andaman & Nicobar Islands	UT (without legislature)
36	Telangana	State
37	Andhra Pradesh	State
38	Ladakh	UT (without legislature)
97	Other Territory	Special Zone

Checking GSTIN Validity: A Quick Reference

Before entering a vendor's GSTIN into Tally Prime, perform these quick checks:

Length: Must be exactly 15 characters. Any GSTIN shorter or longer is invalid.
State Code (Digits 1–2): Must be a valid code from the table above (01 to 38, or 97). Codes like 00, 28, or 39 do not exist and indicate a fake GSTIN.
PAN Embedded (Digits 3–12): Characters 3–12 must match the registered entity's PAN. The 4th character of the PAN indicates entity type: P = Person, C = Company, F = Firm, T = Trust.
Position 14: Must always be the letter "Z". Any other character is a red flag.
GST Portal Verification: Visit www.gst.gov.in > Search Taxpayer > Search by GSTIN/UIN to verify the legal name, registration status, and return filing history.

How Wrong State Codes in Tally Create Tax Errors

A common mistake is entering a supplier's GSTIN with a wrong state code — for example, typing state code 27 (Maharashtra) when the supplier is actually registered in Karnataka (29). The consequences cascade:

Tally treats the transaction as intra-state and applies CGST + SGST instead of IGST.
Your GSTR-3B reflects incorrect IGST paid, causing a mismatch with the supplier's GSTR-1 (which shows IGST collected).
ITC claimed in the wrong tax head (CGST/SGST instead of IGST) cannot be utilized correctly for IGST liability, leading to excess cash outflow.
You may receive a GST scrutiny notice (ASMT-10) flagging the mismatch between your GSTR-2B and GSTR-3B.

Always verify the supplier's GSTIN state code before creating a ledger in Tally Prime. If you are entering data for a new supplier, copy the GSTIN from their invoice and cross-verify on the GST portal before saving.

Tally Prime Ledger Configuration for GSTIN

When creating a supplier or customer ledger in Tally Prime, follow these steps to correctly map the state code:

Go to Gateway of Tally > Create > Ledger
Under Mailing Details, select the correct State from the dropdown (e.g., "Maharashtra")
In the GST Registration Details section, enter the 15-digit GSTIN
Tally will auto-validate the state code in the GSTIN against the selected state. If there is a mismatch, a warning is displayed
Set Registration Type to "Regular" for GST-registered suppliers, or "Unregistered" for vendors without GSTIN

Automate Purchase Invoice Entry with TrulyInvoice

Manually entering supplier GSTINs and state codes for every new vendor is time-consuming and error-prone. One typo in the GSTIN means wrong tax classification on every purchase invoice from that vendor.

TrulyInvoice (plans starting at ₹399/month) eliminates this risk. When you upload a vendor's purchase invoice PDF, TrulyInvoice automatically extracts the supplier's GSTIN and validates its format — checking the state code prefix, PAN embedded within the number, and the checksum character. If the GSTIN passes validation, it maps the supplier to the correct Tally ledger with the right state code pre-filled.

TrulyInvoice supports all major invoice formats and bank statement PDFs from HDFC, SBI, ICICI, Axis, and other banks. Every purchase voucher it creates in Tally Prime carries accurate GSTIN and state data, ensuring your GSTR-2B reconciliation is clean, your ITC claims are correct, and you never receive a GST mismatch notice due to a state code error.