VIJAYAWADA: Andhra Pradesh recorded a 6.72% year-on-year growth in net GST collections in January 2026, reaching Rs 3,073 crore, the highest January collection since the introduction of GST in 2017, despite major GST rate cuts and the rollout of GST 2.0 reforms.
Chief Commissioner of State Tax Babu A said the State achieved the growth even as authorities reduced GST rates on key consumer essentials, consumer durables, pharmaceuticals, automobiles and cement, and withdrew GST on life and medical insurance. He said the government also removed Compensation Cess on most products, except tobacco, with effect from September 22, 2025.
Andhra Pradesh’s 6.72% growth exceeded the national average of 5.80%, excluding imports. Among southern States, Andhra Pradesh ranked second after Karnataka and performed better than Kerala, Tamil Nadu and Telangana.
Net GST collections in Andhra Pradesh have remained higher than the previous year for ten consecutive months from April 2025 to January 2026, reflecting sustained growth in economic activity, consumption and tax compliance.
Chief Commissioner of State Tax Babu A said enhanced compliance mechanisms, extensive use of AI-based data analytics, targeted audits and timely identification of ineligible IGST input tax credit claims drove revenue growth. He said these measures alone yielded over Rs 144 crore in additional collections, while improved IGST settlements contributed significantly to State revenues.
Total GST collections across all sectors in January 2026 stood at Rs 4,704 crore, registering a 7% increase over January 2025.
Cumulative collections up to January 2026 reached Rs 44,221 crore, marking a 4.79% rise over the previous year.
Despite a modest base and the absence of tax rate-driven windfalls, Andhra Pradesh demonstrated steady and non-volatile growth, unlike sharp fluctuations recorded in some other States. The performance reflects resilient revenue systems, efficient tax administration and an expanding tax base.
The sustained upward trend indicates a strong and stabilising fiscal trajectory and positions Andhra Pradesh favourably at both regional and national levels as a leader in GST revenue mobilisation, Babu A said.