HYDERABAD: Driven by strong GST collections and sustained economic activity, the state government recorded its highest-ever monthly tax revenue in July. The Commercial Taxes department collected Rs 7,865 crore through GST, VAT and professional tax during the month, a 19% increase over the Rs 6,625 crore collected in July 2025.
The record collections were Rs 1,241 crore higher than those in the corresponding month last year and surpassed the previous monthly high of Rs 7,598 crore recorded in April 2026, the Commercial Taxes department said on Saturday.
GST continued to be the biggest contributor to the growth. GST revenue alone stood at Rs 4,452 crore in July 2026, up from Rs 3,638 crore in July 2025, an increase of Rs 814 crore. This translated into a year-on-year growth of 22%, which the department said came on top of the robust 19% growth recorded during the first quarter of the current financial year.
Overall, GST collections from Telangana, including IGST, CGST and SGST from registered taxpayers, stood at Rs 5,819 crore in July 2026, reflecting a 19% year-on-year growth. According to the department, this was the second-highest growth among states after Haryana, while the all-India growth rate in GST collections during July 2026 stood at 10%.
The department attributed the strong revenue growth to robust economic activity, rising investments and expanding business opportunities, which boosted employment, consumer spending and tax collections. It also credited technology-driven monitoring and stricter enforcement against fraudulent taxpayers for improving tax administration and revenue realisation.
Officials also stepped up enforcement in July, conducting a special drive to identify and weed out taxpayers involved in generating and passing fraudulent Input Tax Credit without the actual supply of goods and services.
