VIJAYAWADA: Andhra Pradesh recorded 16% growth in Commercial Taxes collections in June 2026 (Rs 664 crore, higher than in June 2025), continuing the strong performance seen in April and May 2026 and rounding off an excellent first quarter of FY 2026-27.
Cumulatively, total collections for the first quarter (up to June 2026) rose to Rs 15,323 crore from Rs 12,480 crore a year earlier - a 22.78% growth - led by Net GST, which grew 25.07% (from Rs 7,978 crore to Rs 9,978 crore), alongside a 21.28% rise in VAT on petroleum products. Building on the 6% cumulative growth achieved in FY 2025-26, the Commercial Taxes Department has maintained its trajectory of disciplined revenue mobilisation.
Net GST collections for June 2026 rose 21.35% year-on-year, from Rs 2,591 crore in June 2025 to Rs 3,144 crore.
In a release issued on Wednesday, Chief Commissioner of State Tax Babu A informed that the increase is driven by improved tax compliance, stronger enforcement, enhanced revenue monitoring and broader economic activity.
This growth was achieved against a challenging backdrop of the GST 2.0 rate rationalisation reforms. New initiatives during the year - AI-based data analytics, AIpowered scrutiny, AI-based IGST reversals, UPI-based analytics enforcement, DISCOM-linked registration verification and Aadhaar-integrated expansion of Profession Tax - generated significant incremental revenue, strengthening June 2026 collections.
GST growth in State exceeds nat’l average
Andhra Pradesh’s 21% growth exceeds the national average of 9% (excluding imports ) and leads the southern states - ahead of Karnataka (11%), Telangana (11%), Tamil Nadu (11%) and Kerala (8%), with Odisha at - 8%.
June collections have grown year-on-year consistently since GST was introduced in 2017. Despite policy-driven rate reductions, the State has sustained this upward trajectory, reflecting strong administrative capacity and improving taxpayer compliance.
“The Department applies an AI-driven, data-based approach to IGST ITC reversal enforcement, using analytics from GSTR-1, GSTR-2A/2B and GSTR-3B to identify discrepancies early and protect SGST revenue from ineligible credit utilisation,” Babu A explained.
The June 2026 IGST settlement was Rs 1,898.22 crore, up Rs 533 crore over June 2025 - the State’s largest single-month growth in IGST settlement to date. The largest component is IGST input tax credit adjusted against SGST liability, reflecting strong inflows of automobiles, mobile phones, iron & steel and electrical equipment. The second-largest is IGST reversals, driven mainly by coal purchases by power generating plants and by solar power companies’ purchases of solar equipment.
June 2026 growth was driven primarily by the record IGST settlement and continued strength in petroleum VAT and profession tax. The Department will keep scaling AI-powered scrutiny, UPI-based analytics and DISCOM- and MAUD/RERA-linked verification drives through the rest of FY 2026-27 to sustain first-quarter momentum and progress towards the enhanced annual target.
STRONG REVENUE GROWTH
Year-on-Year Growth: 21.35% vs June 2025, reflecting improvement in compliance and administrative effectiveness
IGST Settlement: Rs 1898 crore (38.99% YoY)
Petroleum VAT: Rs 1531.18 crore (6.63% YoY)
Professional Tax: Rs 53.12 crore - bolstered by Aadhaar integration & expanded taxpayer base