Andhra Pradesh posts highest-ever January GST collections at ₹3,073 crore

Andhra Pradesh recorded its highest-ever net Goods and Services Tax (GST) collections for the month of January since the tax regime was introduced in 2017, with revenues rising 6.72 per cent year-on-year to Rs 3,073 crore in January 2026 , reflecting sustained economic activity and improved tax compliance.

The growth was achieved despite GST rate reductions on consumer essentials, durables, pharmaceuticals, automobiles and cement, the withdrawal of GST on life and medical insurance , and the removal of compensation cess on most products from September 2025 , underscoring volume-led growth rather than rate-driven gains, officials said.

According to the Commercial Taxes Department , Andhra Pradesh’s GST growth outpaced the national average of 5.8 per cent (excluding imports) and ranked second among southern states , behind Karnataka, while surpassing Kerala, Tamil Nadu and Telangana.

Revenue break-up:

Gross GST collections in January stood at Rs 3,479 crore . State GST (SGST) collections rose 8.37 per cent to Rs 1,284 crore , reflecting stronger intra-State consumption. Integrated GST (IGST) settlements , which accrue to states from inter-State trade and imports, increased 5.57 per cent to Rs 1,789 crore , indicating improved trade flows and consumption within the state.

Officials clarified that Central GST (CGST) , though collected on intra-State transactions, accrues to the Centre and does not form part of state revenues, while IGST is collected by the Centre and later settled with the destination state.

Petroleum product revenues remained strong, with VAT collections rising 7.09 per cent to Rs 1,490 crore , while professional tax collections jumped 25.6 per cent to Rs 38 crore , pointing to improved compliance among salaried employees and service providers.

Sustained 12-month trend:

Andhra Pradesh has now recorded higher net GST collections for ten consecutive months , from April 2025 to January 2026 , compared to the corresponding period last year. Over the last 12 months, GST growth has been steady and broad-based , rather than driven by one-off spikes.

Total tax collections across all sectors in January reached Rs 4,704 crore , marking a 7 per cent increase over January 2025, while cumulative collections up to January 2026 stood at Rs 44,221 crore , reflecting a 4.79 per cent year-on-year rise .

Factors behind the increase:

Officials attributed the improved revenue performance primarily to technology-driven compliance measures , including the use of advanced data analytics and artificial intelligence to detect tax evasion, identify discrepancies in input tax credit claims, and conduct targeted audits . These measures alone yielded over Rs 144 crore in additional collections , they said.

Other key contributors included the expansion of the tax base , improved return-filing compliance, better coordination between central and state tax authorities, and performance-based deployment of officers.

Consumption patterns:

Higher GST collections were supported by increased consumption of consumer essentials, pharmaceuticals, automobiles, cement and building materials , alongside growth in transport, logistics and professional services . Rising fuel usage, reflected in higher petroleum VAT, also pointed to stronger economic activity.

While officials acknowledged that residual festive demand from the October–November festival season may have provided limited support to consumption, they stressed that the January performance was not festival-driven , as growth remained strong in non-seasonal segments such as construction, services, inter-State trade and compliance-led revenues.

Despite a lower base and the absence of tax rate increases, Andhra Pradesh’s revenue trajectory has remained stable, reflecting a widening tax base, stronger compliance and sustained consumption , officials said.