GST – Andhra Pradesh Posts Strong Commercial Tax Growth in June
GST – Andhra Pradesh registered a 16 per cent rise in commercial tax collections during June 2026, adding Rs 664 crore over the revenue recorded in the same month last year. The latest figures capped a strong opening quarter for the state’s Commercial Taxes Department in the 2026-27 financial year, following steady gains in April and May.
First-quarter collections rise above Rs 15,000 crore
Commercial tax revenue during the April-June quarter reached Rs 15,323 crore, compared with Rs 12,480 crore in the corresponding period of 2025. This represents year-on-year growth of 22.78 per cent.
Net GST remained the main contributor to the increase. Collections under the category climbed from Rs 7,978 crore in the first quarter of the previous financial year to Rs 9,978 crore this year, a rise of 25.07 per cent. Revenue from VAT on petroleum products also grew by 21.28 per cent during the period.
The department had recorded cumulative growth of 6 per cent in 2025-26. Officials said the current quarter’s results indicate that revenue mobilisation efforts have continued to strengthen.
June GST receipts show year-on-year improvement
Net GST collections for June stood at Rs 3,144 crore, against Rs 2,591 crore in June 2025. The increase of Rs 553 crore translated into year-on-year growth of 21.35 per cent.
Chief Commissioner of State Tax Babu A said in a statement issued on Wednesday that better compliance, closer monitoring of revenue trends, enforcement activity and wider economic transactions had contributed to the improvement.
The collection growth came during a period of GST 2.0 rate rationalisation measures, which have affected tax rates in several areas. The department said it relied on technology-led interventions to identify revenue gaps and improve verification.
Technology-based scrutiny supports enforcement
During the current financial year, the department introduced and expanded several digital tools, including artificial intelligence-based data analysis, automated scrutiny processes, IGST reversal checks and UPI-linked analytics for enforcement.
Other measures included verification of registrations through electricity distribution company records and the extension of Aadhaar-linked processes for professional tax. Officials said these initiatives helped generate additional revenue during June.
According to the department, Andhra Pradesh’s GST growth rate of about 21 per cent was above the national average of 9 per cent, excluding import-related collections. It also exceeded the reported growth rates of Karnataka, Telangana and Tamil Nadu, each at 11 per cent, and Kerala at 8 per cent. Odisha recorded an 8 per cent decline during the period.
Record IGST settlement lifts June revenue
The state received an IGST settlement of Rs 1,898.22 crore in June 2026, an increase of Rs 533 crore from June last year. Officials described it as Andhra Pradesh’s highest single-month increase in IGST settlement so far.
A significant share of the settlement came from IGST input tax credit adjusted against SGST liabilities. The department linked these inflows to transactions involving automobiles, mobile phones, iron and steel, and electrical equipment.
IGST reversals formed the second-largest component. These were largely associated with coal purchases by power generation companies and procurement of solar equipment by solar power firms.
Petroleum VAT and professional tax add support
Petroleum VAT collections reached Rs 1,531.18 crore in June, showing annual growth of 6.63 per cent. Professional tax receipts stood at Rs 53.12 crore, supported by Aadhaar integration and an expanded taxpayer base.
The department said it would continue using AI-supported scrutiny, UPI analytics and verification drives linked to DISCOM, MAUD and RERA records through the remainder of 2026-27. The objective is to maintain the first-quarter pace and work towards the state’s higher annual revenue target