diff --git a/erpnext/hooks.py b/erpnext/hooks.py
index 5270e7beea2..1dc6b6b4170 100644
--- a/erpnext/hooks.py
+++ b/erpnext/hooks.py
@@ -239,6 +239,9 @@ doc_events = {
 	"Website Settings": {
 		"validate": "erpnext.portal.doctype.products_settings.products_settings.home_page_is_products"
 	},
+	"Tax Category": {
+		"validate": "erpnext.regional.india.utils.validate_tax_category"
+	},
 	"Sales Invoice": {
 		"on_submit": ["erpnext.regional.create_transaction_log", "erpnext.regional.italy.utils.sales_invoice_on_submit"],
 		"on_cancel": "erpnext.regional.italy.utils.sales_invoice_on_cancel",
diff --git a/erpnext/regional/india/utils.py b/erpnext/regional/india/utils.py
index 5872c69fd16..c73bac1c500 100644
--- a/erpnext/regional/india/utils.py
+++ b/erpnext/regional/india/utils.py
@@ -51,6 +51,13 @@ def validate_gstin_for_india(doc, method):
 			frappe.throw(_("Invalid GSTIN! First 2 digits of GSTIN should match with State number {0}.")
 				.format(doc.gst_state_number))
 
+def validate_tax_category(doc, method):
+	if doc.get('gst_state') and frappe.db.get_value('Tax category', {'gst_state': doc.gst_state, 'is_inter_state': doc.is_inter_state}):
+		if doc.is_inter_state:
+			frappe.throw(_("Inter State tax category for GST State {0} already exists").format(doc.gst_state))
+		else:
+			frappe.throw(_("Intra State tax category for GST State {0} already exists").format(doc.gst_state))
+
 def update_gst_category(doc, method):
 	for link in doc.links:
 		if link.link_doctype in ['Customer', 'Supplier']:
@@ -500,7 +507,7 @@ def get_address_details(data, doc, company_address, billing_address):
 		data.transType = 1
 		data.actualToStateCode = data.toStateCode
 		shipping_address = billing_address
-	
+
 	if doc.gst_category == 'SEZ':
 		data.toStateCode = 99