RevenueGrowth – Andhra Pradesh Posts Strong Tax Collection Rise in May 2026
RevenueGrowth – Andhra Pradesh continued its positive revenue trend in May 2026, reporting a notable increase in tax collections compared to the same period last year. The latest figures released by the Commercial Taxes Department show that the state achieved significant gains in both GST revenue and overall tax receipts, reflecting stronger compliance levels and effective tax administration. The performance builds on the momentum seen at the beginning of the 2026-27 financial year and follows the growth recorded during the previous fiscal year.
Tax Collections Show Steady Improvement
According to official data, Commercial Taxes collections during May 2026 increased by 19 percent over May 2025, resulting in an additional Rs 737 crore in revenue. The department stated that this growth reflects sustained efforts toward improving tax collection efficiency and maintaining revenue discipline across sectors.
Net GST collections for the month stood at Rs 3,037 crore. Compared with the corresponding month last year, GST revenue registered a year-on-year increase of 16 percent. Officials attributed the improvement to better taxpayer compliance and continued administrative reforms aimed at strengthening the tax ecosystem.
Andhra Pradesh Outpaces National Growth Rate
Chief Commissioner of State Tax Babu A said the state’s GST growth rate was considerably higher than the national average. Excluding import-related revenue, India recorded GST growth of around 6 percent during the same period, while Andhra Pradesh achieved a 16 percent increase.
The official noted that the state’s performance demonstrates effective monitoring and enforcement measures, helping Andhra Pradesh maintain a stronger growth trajectory than many other regions across the country.
Comparison With Other Southern States
Among southern states, Andhra Pradesh emerged as one of the leading performers in GST growth during May 2026. Karnataka recorded the highest growth at 17 percent, placing Andhra Pradesh in the second position with 16 percent.
The state’s performance remained ahead of several neighbouring states, including Kerala, which reported 15 percent growth, Telangana with 14 percent, and Tamil Nadu with 12 percent. In contrast, Odisha registered a decline of 5 percent during the same period.
These figures indicate that Andhra Pradesh continues to demonstrate relatively strong momentum in tax revenue generation compared with several major states.
Higher IGST Settlement Strengthens Revenue
The state also benefited from a larger Integrated Goods and Services Tax (IGST) settlement from the Government of India. During May 2026, Andhra Pradesh received Rs 1,758.58 crore through IGST settlement.
This amount was Rs 234.12 crore higher than the Rs 1,524.46 crore received during May 2025, representing an increase of 15.36 percent. The higher settlement contributed positively to the state’s overall revenue position and supported growth in total tax collections.
Overall Tax Revenue Nears Rs 5,000 Crore
Across all major tax categories, Andhra Pradesh recorded total collections of Rs 4,950 crore in May 2026. In comparison, total revenue stood at Rs 4,165 crore in May 2025.
The increase translates into a growth rate of 19 percent, highlighting broad-based improvement across multiple revenue streams. Officials said the figures underline the state’s continued focus on strengthening fiscal management and enhancing collection mechanisms.
Key Sectors Driving Growth
Revenue gains during May were largely supported by strong collections from petroleum-related Value Added Tax (VAT). Additional contributions came from sectors such as real estate and construction services.
On the goods side, categories including electrical machinery, equipment, bullion and jewellery contributed positively to tax receipts. However, GST collections from some industries faced pressure due to tax rate reductions on vehicles, cement and metal products, which moderated overall growth in those segments.
Despite these challenges, the state’s overall tax performance remained robust, helping Andhra Pradesh maintain a strong start to the current financial year.