VIJAYAWADA: Andhra Pradesh has achieved a 10% increase in the net GST collection in March 2026. Additionally, the State recorded an overall growth of 6% for the financial year 2025-26, marking a significant accomplishment in the current economic scenario.
According to Chief Commissioner (State Taxes) Babu A, the growth was realised despite numerous structural and policy-related challenges, particularly the effects of GST 2.0 reforms.
These reforms, designed to streamline tax rates and simplify the tax system, led to reductions in applicable rates across various sectors, thereby putting pressure on revenue collection.
Despite such inherent limitations and revenue compression, the Commercial Taxes Department has shown strong administrative resilience by not only stabilising the collection but also realising growth. This reflects the effectiveness of strategic interventions, enhanced compliance mechanisms, and a tech-driven tax administration approach, he said.
The net GST collection for March 2026 reached Rs 3,316 crore, the highest ever for the month. The total includes GST compensation amount of Rs 193 crore.
AP shows stable & better revenue performance in FY 2025-26
For the financial year (April-March 2026), the net GST collections have exceeded those of the same months in the previous fiscal, indicating consistent and sustained growth in economic activity and consumption in the State.
Compared to March 2025, the net GST collection rose by 9.97%, demonstrating strong performance.
The gross GST collection, excluding cess, for March 2026 reached Rs 3,773 crore despite reduction in tax rates on several products and the removal of cess on sin goods. Overall, Andhra Pradesh showed stable, above-average growth, better revenue performance compared to most neighbouring States. The effective tax administration has put it in a favourable position both regionally and nationally.
The State GST (SGST) collection reached Rs 1,415.84 crore in March 2026, marking a 1.17% increase over the same month in 2025. This growth indicates improved consumption patterns across sectors, effective tax administration, and strengthened enforcement mechanisms.
A key focus during the year was systematically identifying and enforcing IGST Input Tax Credit (ITC) reversals in cases of ineligible or excessive claims.
As IGST credit usage directly impacts SGST revenue, the department adopted a data-driven approach, utilising return analytics (GSTR-1, GSTR-2A/2B, and GSTR-3B) to identify discrepancies early.
The Centre has settled Rs 1,706.76 crore of IGST for March 2026 to Andhra Pradesh, which is Rs 91.35 crore (5.65%) more than the settlement during the same period in 2025 (Rs 1,615.45 crore), and Rs 286.90 crore (20.21%) higher than 2024 (Rs 1,419.89 crore).