VIJAYAWADA: The Government of Andhra Pradesh recorded growth in net GST collections in December 2025 despite rate reductions on major consumer essentials, consumer durables, pharmaceuticals and cement, and the removal of GST on life and medical insurance following the implementation of GST 2.0 reforms from September 22, 2025.
The GST Compensation Cess has been withdrawn on all applicable items except tobacco and tobacco products.
The revenue collected in December 2025 pertains to business transactions carried out in November 2025.
Increased consumption driven by rate reductions, strategic policy initiatives and enhanced compliance mechanisms contributed to sustained revenue growth, making December 2025 the highest-ever December collection since the GST regime was introduced in 2017.
According to Chief Commissioner of State Tax Babu A, net GST collections for December 2025 stood at Rs 2,652 crore, the highest ever for the month, despite reductions in tax rates on several goods.
For nine consecutive months from April to December 2025, net GST collections have surpassed those recorded during the corresponding months of the previous financial year, signalling steady and sustained growth in economic activity and consumption in the State.
Compared to December 2024, net GST collections rose by 5.78 per cent. This growth rate exceeded the national average (excluding imports) of 5.61 per cent, indicating a better-than-India-wide performance.
Among the southern States, Andhra Pradesh ranked second only to Tamil Nadu (7.85 per cent), and outperformed Karnataka (5.12 per cent), Kerala (3.69 per cent) and Telangana (2.45 per cent), reflecting stronger growth momentum.
Gross GST collections for December 2025 reached Rs 3,137 crore despite rate reductions on several products and the removal of Compensation Cess on all items except sin goods. However, gross collections declined by 5.37 per cent compared to December 2024. Excluding Cess collections, the decline was marginal at just 0.24 per cent.
Among major taxpayers, the automotive, cement and electronics sectors recorded an overall turnover growth of 23.69 per cent, reflecting increased business activity.
While automotive showed strong growth, the other sectors registered moderate expansion. Despite higher turnover, total GST liability declined by 9.35 per cent due to rate rationalisation under GST 2.0 and higher utilisation of Input Tax Credit, leading to a sharp 69.57 per cent reduction in GST cash payments.
A key positive aspect, officials noted, is that AP achieved this growth despite a relatively modest base, indicating steady improvement rather than volatility. Unlike Odisha, which recorded a sharp decline of 12.16 per cent, AP maintained positive growth, highlighting stronger compliance and resilience in revenue mobilisation.