Your sample table
SELECT * INTO #TEMP FROM
(
SELECT 'UP' [State],'A' LAB,'I' [GROUP],'1-Jan' [DATE],1 CODE,345 ID
UNION ALL
SELECT 'UP','R','S','1-Feb',1,456
UNION ALL
SELECT 'UP','A','S','1-Jan',2,567
UNION ALL
SELECT 'DL','R','S','1-Feb',3,678
UNION ALL
SELECT 'DL','T','S','1-Jan',1,789
UNION ALL
SELECT 'DL','A','S','1-Jan',2,900
UNION ALL
SELECT 'MN','T','S','1-Jan',3,1011
UNION ALL
SELECT 'MN','R','I','1-Feb',1,1122
UNION ALL
SELECT 'MN','S','I','1-Feb',2,1233
)TAB
Now you need to get the distinct count of each state and get the sum as the result to show Total
in pivoted result.
SELECT DISTINCT [State],LAB,SUM(CNT) CNT
INTO #NEWTABLE
FROM
(
SELECT DISTINCT
[State],LAB,
CASE WHEN [State] IS NULL THEN NULL ELSE COUNT([State]) OVER(PARTITION BY [State],LAB) END CNT
FROM #TEMP
)TAB
GROUP BY [State],LAB
WITH ROLLUP
Now we need to get the distinct columns for pivot(@cols) and columns to identify and replace null with zero in pivot(@NullToZeroCols)
DECLARE @cols NVARCHAR (MAX)
DECLARE @NullToZeroCols NVARCHAR (MAX)
SET @cols = SUBSTRING((SELECT DISTINCT ',['+LAB+']' FROM #NEWTABLE GROUP BY LAB FOR XML PATH('')),2,8000)
SET @NullToZeroCols = SUBSTRING((SELECT DISTINCT ',ISNULL(['+LAB+'],0) AS ['+LAB+']'
FROM #NEWTABLE GROUP BY LAB FOR XML PATH('')),2,8000)
Join the pivotted query with the #NEWTABLE to get the Total
for each State
DECLARE @query NVARCHAR(MAX)
SET @query = 'SELECT P.State,' + @NullToZeroCols + ',T2.CNT TOTAL FROM
(
SELECT DISTINCT [State],LAB,CNT FROM #NEWTABLE
) x
PIVOT
(
SUM(CNT)
FOR [LAB] IN (' + @cols + ')
) p
JOIN #NEWTABLE T2 ON P.[STATE]=T2.[STATE]
WHERE P.State IS NOT NULL AND T2.LAB IS NULL AND T2.[STATE] IS NOT NULL;'
EXEC SP_EXECUTESQL @query
Here is your result

Here is the SQLFiddle http://sqlfiddle.com/#!3/c2588/1 (If it shows any error while loading the page, just click RUNSQL, it will work)
Now if you want to get the result as you said DISTINCT COUNT OF ID FOR EACH LAB FOR EACH STATE, just change
OVER(PARTITION BY [State],LAB)
to
OVER(PARTITION BY [State],LAB,Id)
which will show the following result after executing the pivot query
