AP's GST Revenue Surge Touches ₹4,987 Crore, Sets New Benchmark

Andhra Pradesh has achieved its highest-ever GST collections for the month of May since the tax regime was introduced in 2017 , underscoring strong economic activity, improved compliance , and effective use of technology in tax administration.

According to Commercial Taxes Chief Commissioner A. Babu , the state generated ₹4,987 crore in GST revenue during May 2026 , an increase of ₹737 crore over the corresponding period last year. The milestone comes even as GST 2.0 reforms continue to focus on simplifying the tax structure and improving ease of doing business.

The Commercial Taxes Department reported that overall tax collections increased from ₹4,165 crore in May 2025 to ₹4,950 crore in May 2026 , reflecting a 19% growth rate. Net GST collections stood at ₹3,037 crore , marking a 16% year-on-year increase and placing Andhra Pradesh among the top-performing states in the South, second only to Karnataka.

The state's revenue growth was supported by strong IGST settlements , which contributed ₹1,758.58 crore , and a sharp rise in petroleum VAT collections, which climbed 31.79% to ₹1,768.82 crore . Professional tax collections also remained healthy at ₹48.92 crore , aided by Aadhaar-linked verification drives and efforts to expand the taxpayer base.

Officials attributed the strong performance to the department's growing reliance on Artificial Intelligence , advanced data analytics , and technology-based enforcement mechanisms. AI-powered scrutiny systems, UPI transaction analysis, and data integration with agencies such as RERA, APCRDA, mining authorities, and power distribution companies have helped identify tax leakages and strengthen enforcement.

The department believes these technology-led initiatives have not only enhanced revenue collection but also improved transparency, monitoring, and overall tax governance across the state.