GST State Codes List for Tally Ledger Creation: Complete Lookup

Under India's GST system, determining the correct tax type depends on identifying the Place of Supply (POS). To calculate taxes accurately, businesses must record their customers' and suppliers' state codes correctly.

These state codes correspond to the first two digits of the 15-character GSTIN. During ledger creation, TallyPrime uses these codes to determine whether to apply CGST/SGST or IGST. This guide provides the complete list of GST state codes and explains how to configure them in Tally.

1. Complete GST State Codes Lookup Table

2. How TallyPrime Maps State Codes to Transactions

TallyPrime uses state codes to automate tax calculations during invoicing:

1. Check Company Profile: Tally reads your company's home state setting (e.g. Maharashtra, code 27).
2. Verify Party Ledger: When creating a sales invoice, Tally reads the customer's state setting in their ledger master.
3. Apply Tax Ledger: If the customer's state is set to Gujarat (code 24), Tally identifies the transaction as interstate and applies IGST. If the state is set to Maharashtra, Tally identifies it as local and applies CGST and SGST.

3. Step-by-Step Ledger Configuration

To set the correct state code during vendor or customer ledger creation:

1. Go to Gateway of Tally > Create > Ledger.
2. Enter the customer or vendor name and group under Sundry Debtors or Creditors.
3. In the mailing details panel, select the correct state from the dropdown list.
4. In the taxation details panel, enter the party's 15-character GSTIN. Tally will check that the first two digits of the GSTIN match the selected state code.
5. Press Ctrl + A to save. If there is a mismatch between the state and GSTIN prefix, TallyPrime will display a warning, allowing you to correct the entry.

4. Consequences of State Code Mismatches

Entering incorrect state codes can cause formatting and return processing errors:

• Incorrect Tax Ledger Postings: Applying local tax to interstate sales will result in GSTR-1 filing errors.
• E-Invoice Rejections: The e-invoice portal validates GSTIN prefixes against the Place of Supply. A mismatch will cause the portal to reject the invoice.
• Mismatches in GSTR-3B: Wrong tax calculations can cause discrepancies between the tax amounts in your transaction invoices and the totals reported in GSTR-3B.

5. Handling Place of Supply in E-Way Bills

E-Way bills require the correct 2-digit state code for both the consignor (sender) and consignee (recipient). TallyPrime uses these codes to calculate the transportation distance automatically and verify the validity period of the e-way bill.

6. Reconciling Multi-state Customers

For clients with offices in multiple states, create separate party ledgers in Tally for each branch location (e.g. Acme Corp - Gujarat and Acme Corp - Delhi). Configure the correct GSTIN and state code for each ledger to ensure taxes are calculated correctly for each shipment.

7. Reconciling Shipping vs. Billing State Codes

If your transaction billing address is in one state but the goods are shipped to another, use Tally's Consignee and Buyer details option. Enable this feature in the invoice settings (F12) to record separate billing and shipping addresses, allowing Tally to apply the correct tax rate based on the place of delivery.

8. Keeping State Master Data Updated

The GST Council occasionally updates state codes or introduces new territories. Ensure your TallyPrime database is regularly updated with the latest statutory files. With an active TSS subscription, TallyPrime updates these master state tables in the background automatically, helping you avoid compliance errors.

9. Special Place of Supply Overrides

For services like hotel accommodation or immovable property rentals, the place of supply is determined by the property location, not the customer's billing address. Overwrite the default Place of Supply (POS) in Tally's invoice settings to apply the correct tax rate. Failing to define these overrides results in local CGST/SGST being charged for out-of-state properties, which triggers portal tax mismatches and delays credit payouts.

10. State Code Mapping for Special Economic Zones (SEZ)

When selling to SEZ units within your state, the transaction is treated as an interstate supply. Configure the customer's registration type as SEZ in Tally Prime to apply IGST instead of CGST/SGST. This is critical because SEZ transactions are exempt from tax if backed by a Letter of Undertaking (LUT), and incorrect ledger groupings can generate unnecessary tax liabilities.

11. Re-checking E-invoice Registry Mismatches

Ensure that billing addresses match the official GSTIN registry. The IRP validates these prefix combinations and will reject invoices with mismatched state codes. Regularly verify these entries using the official GST search tool to keep your master data aligned.

12. Auditing Historical Vouchers for State Code Integrity

If your company undergoes a tax audit, the auditor will match place of supply entries against tax ledger payments. Run a multi-period ledger check in TallyPrime to catch any transactions where local taxes were wrongly posted to out-of-state accounts. Correcting these historical errors via adjusting journal entries is necessary to maintain clean tax registers.