VIJAYAWADA: Andhra Pradesh has registered its highest-ever net GST collections for the month of February, recording Rs 3,061 crore in February 2026.
This marks a 5.45% increase over February 2025, achieved despite reductions in tax rates on consumer essentials, durables, pharmaceuticals, cement, and the withdrawal of GST on life and medical insurance under GST 2.0 reforms.
According to Chief Commissioner of State Tax Babu A, the achievement reflects resilience in revenue mobilisation, improved consumption, and effective tax administration.
For 11 consecutive months from April to February, net GST collections have consistently surpassed those of the same period in the previous financial year. Gross GST collections without cess stood at Rs 3,562 crore, marginally lower than the Rs 3,569 crore recorded in February 2025, but net collections showed steady growth. The State’s performance highlights improved compliance, strategic policy measures, and enhanced enforcement mechanisms.
Sectoral contributions were significant. State GST collections reached Rs 1,251 crore, up 2.96% year-on-year. IGST settlement stood at Rs 1,810 crore, a 7.24% increase over February 2025, aided by reversals of ineligible input tax credits and improved compliance.
Petroleum VAT contributed Rs 1,442 crore, reflecting a 3.06% rise, while professional tax collections surged to Rs 43 crore, registering a sharp 31.97% increase. Cumulatively, total collections across all sectors until February 2026 amounted to Rs 48,854 crore, compared to Rs 46,629 crore in the same period last year, indicating a 4.77% overall growth.
The Commercial Taxes Department attributed the growth to targeted interventions such as AI-powered data analytics to detect anomalies in input tax credit claims, strict enforcement of return filing deadlines, identification and reversal of parked IGST credits, and performance-based deployment of officers to high-revenue jurisdictions.
Proactive recovery measures against chronic defaulters, including asset and bank account identification, also contributed to strengthening compliance and boosting revenues.
Regionally, Andhra Pradesh’s cumulative growth of 5.86% outperformed southern counterparts such as Karnataka (5.70%), Tamil Nadu (3.10%), Telangana (4.57%), and Kerala (2.95%). Odisha, in contrast, recorded a sharp decline of 8.18%, underscoring Andhra Pradesh’s relative resilience and effective tax administration.
Chief Commissioner Babu A observed that the February performance signals the beginning of a stabilising and upward fiscal trajectory. The state’s ability to achieve growth despite tax rate reductions and cess withdrawals reflects the effectiveness of its compliance framework, enforcement strategies, and expanding tax base.