Andhra Pradesh GST revenue touches fresh high of Rs 4,987 crore in May

Vijayawada: Andhra Pradesh has recorded its highest-ever goods and services tax (GST) revenue collection for May, with total tax receipts touching ₹4,987 crore in May 2026, an increase of ₹737 crore over the corresponding month last year. This is a robust 19% year-on-year growth. The strong performance follows a record-breaking April and reflects sustained momentum in revenue mobilisation by the commercial taxes department. The growth comes despite GST rate rationalisation measures aimed at simplifying the tax structure and supporting economic activity.

“Net GST collections stood at ₹3,037 crore in May, compared with ₹2,629 crore in May 2025, registering a growth of 16%. The state’s GST growth significantly outpaced the national average of 6% and ranked second among southern states, behind Karnataka’s 17%. Andhra Pradesh also performed better than Kerala, Telangana and Tamil Nadu,” said chief commissioner of state taxes, Babu A.

He said that the state received an IGST settlement of ₹1,758.58 crore from the Centre during May, up 15.36% from the previous year. Petroleum VAT collections surged 31.79% to ₹1,768.82 crore, emerging as a major contributor to overall revenue growth. He explained that the performance was due to a series of technology-driven reforms and enforcement initiatives. The department has deployed artificial intelligence and machine learning tools for taxpayer scrutiny, fraud detection, invoice verification and compliance monitoring.

Key initiatives include AI-based analytics, automated GST scrutiny, UPI transaction monitoring, Aadhaar-linked professional tax expansion, discom-linked business verification and integration of data from RERA, APCRDA, mining and registration departments. These measures helped identify tax leakages and widen the tax base. Chief commissioner said that the department also intensified monitoring of sectors such as real estate, construction, mining, restaurants and online food delivery platforms.

He said that the focus in 2026-27 will remain on AI-driven enforcement, expansion of digital compliance systems, anti-evasion measures and broader integration of tax intelligence databases to sustain revenue growth and strengthen the state’s finances.