Graph Transformer has recently received wide attention in the research community with its outstanding performance, yet its structural expressive power has not been well analyzed. Inspired by the connections between Weisfeiler-Lehman (WL) graph isomorphism test and graph neural network (GNN), we introduce \textbf{SEG-WL test} (\textbf{S}tructural \textbf{E}ncoding enhanced \textbf{G}lobal \textbf{W}eisfeiler-\textbf{L}ehman test), a generalized graph isomorphism test algorithm as a powerful theoretical tool for exploring the structural discriminative power of graph Transformers. We theoretically prove that the SEG-WL test is an expressivity upper bound on a wide range of graph Transformers, and the representational power of SEG-WL test can be approximated by a simple Transformer network arbitrarily under certain conditions. With the SEG-WL test, we show how graph Transformers' expressive power is determined by the design of structural encodings, and present conditions that make the expressivity of graph Transformers beyond WL test and GNNs. Moreover, motivated by the popular shortest path distance encoding, we follow the theory-oriented principles and develop a provably stronger structural encoding method, Shortest Path Induced Subgraph (\textit{SPIS}) encoding. Our theoretical findings provide a novel and practical paradigm for investigating the expressive power of graph Transformers, and extensive synthetic and real-world experiments empirically verify the strengths of our proposed methods.