How to Read GST State Codes: A Simple Guide for Businesses

TL;DR

• GST state codes are two-digit numbers that represent each Indian state or union territory.
• They appear at the beginning of every GSTIN.
• You should understand these codes to verify GSTINs, prepare invoices correctly, and avoid filing mistakes.
• Tools like an HSN code finder and GSTIN checker help simplify compliance.

If you run a business in India, you deal with GST every day, whether it’s filing returns, creating invoices, or checking customer details. One small but important part of GST compliance is understanding GST state codes. These two-digit codes appear on every GSTIN and help identify the state in which a business is registered. Knowing how to read them saves time, prevents filing errors, and ensures smooth operations.

In this guide, you’ll learn exactly how GST state codes work and how to use them confidently. Also, get a full GST state code list below.

What Are GST State Codes?

GST state codes are unique two-digit numerical identifiers assigned to every state and union territory in India. They form the first two characters of every GSTIN (Goods and Services Tax Identification Number).

Example: If a GSTIN begins with 27, it means the business is registered in Maharashtra.

Why GST State Codes Matter to You

You use GST state codes for routine tasks such as:

• Checking GSTIN legitimacy
• Creating tax invoices
• Filing GSTR-1, GSTR-3B, or annual returns
• Determining the place of supply
• Understanding IGST vs CGST/SGST applicability

In short, knowing these codes helps you stay compliant and avoid costly mistakes.

Complete GST State Code List

Here’s the full GST state code list you can use for invoice preparation and GSTIN verification:

How to Read a GSTIN Using State Codes

A GSTIN has 15 characters. The first two are the state code.

Example GSTIN:

29ABCDE1234F1Z5

• 29 = Karnataka
• ABCDE1234F = PAN of the business
• 1 = Entity number
• Z = Default character
• 5 = Checksum digit

Once you understand the first two digits, you instantly know where the business is registered.

GST State Codes vs HSN Codes: Know the Difference

Many people confuse state codes with HSN codes. But they’re completely different.

• GST State Codes identify where the business is registered.
• HSN Codes classify what goods or services you sell.

If you struggle to find the correct HSN codes, an online HSN code finder can help you quickly identify the right classification for your products. Both are essential for GST-compliant invoicing.

Best Practices for Using GST State Codes

To make your work easier, follow these simple habits:

• Always verify GSTIN using the state code + PAN combination.
• Keep the GST state code list handy while preparing invoices.
• Cross-check every new vendor or customer GSTIN before adding to your system.
• Use automated tools like GSTIN verifiers and HSN code finder platforms.
• Train staff who handle billing and GST filing.

These small steps reduce errors and improve compliance.

Conclusion

Reading GST state codes may look like a small task, but it plays a big role in keeping your business compliant and error-free. Once you understand how these two-digit codes work, and how they fit into a GSTIN, you can verify suppliers faster, create accurate invoices, and avoid filing mistakes. Keep the GST state code list handy, use reliable tools like an HSN code finder, and make GST processes simpler for your team. With a little practice, GST state codes become second nature.

FAQs

1. Where can I find GST state codes?

You can refer to the complete GST state code list provided above. These are officially used for GSTIN generation across India.

2. Are GST state codes the same as PIN codes?

No. PIN codes identify postal areas, while GST state codes identify the state of GST registration.

3. Do GST state codes ever change?

Only in rare cases, such as the creation of a new state or union territory. For example, Ladakh was recently assigned code 38.

4. Is the state code enough to verify a GSTIN?

It’s a good starting point, but you should also check the full GSTIN using government-approved verification tools.

5. How can I find HSN or SAC codes for invoicing?

Use any reliable HSN code finder online to search based on product name, chapter, or tax rate.

Also Read: What Are Smart Contracts and How Can They Help My Business?