AP Collects Highest Net GST of Rs 2,714 cr in May

Vijayawada: Andhra Pradesh has made the highest net Goods and Services Tax collections of Rs 2,714 crore for May -- the highest ever since the introduction of the AP GST Act in 2017.

According to a statement issued by the chief commissioner of state tax, A Babu, the net GST collections of Rs 2,714 crore and Integrated GST settlement of Rs 1,524 crore in May 2025 represent the highest revenue for AP. The net GST collections increased in May compared to the same month last year.

This increase reflects strengthened tax compliance, improved settlement adjustments and a broader tax base within the state.

The growth in net collections is particularly significant because “net revenue represents the actual revenue accrued to the state after accounting for IGST settlements and other components, while the gross collections reflect the total tax paid.”

The net collections provide a more accurate indicator of the state’s fiscal health by considering the revenue available for state expenditures. The central government deducted Rs 796 crore in IGST settlement for April 2025 under the ‘Adjustment of Advance Apportionment’ to make up a shortfall in the IST balance as on 31-03-2025 for the dues that existed prior to June 2024.”

However, the gross GST collections for May 2025 have registered a negative growth of 2.24 per cent. The main reason for this is the negative collections in cess, SGST and CGST payment, with a decline of Rs 52 crore, Rs 51 crore and Rs 40 crore respectively.

“Yet, the overall impact of these negative cess and CGST growth is minimal on the state’s actual revenue, as net revenue collections continue to demonstrate a strong performance. The tax authorities initiated several key steps to increase tax collections.”

These include: increased return compliance, stronger investigation mechanism, APIs (application programming interface) integrated with the registration department and also with GSWS (grama sachivalayams and ward sachivalayam) for arrears collection, which helped recover outstanding dues.

Moreover, a drive was initiated on defaulters who paid substantial tax the previous fiscal and failed to file returns and also identified the assets and bank accounts of the defaulters and initiated recovery action, the statement said.