Andhra Pradesh's commercial tax collections rose 18 per cent year-on-year to Rs 30,435.98 crore in the first half of fiscal 2026-27. (File Photo)

Vijayawada: Andhra Pradesh's commercial tax collections rose 18 per cent year-on-year to Rs 30,435.98 crore in the first half of fiscal 2026-27, with September recording the highest monthly collection so far, the state Commercial Taxes Department said.

The state collected Rs 4,986.18 crore in commercial taxes in September, Rs 651.34 crore or 15.03 per cent more than a year earlier, according to the department. The first-half collections were Rs 4,543.06 crore higher than the corresponding period of 2025-26.

Net GST collections rose 18 per cent to Rs 19,635.49 crore during April-September from Rs 16,760.21 crore a year earlier.
In September alone, net GST collections increased 14.10 per cent to Rs 3,182.87 crore from Rs 2,789.50 crore a year ago. The department attributed the increase to improved tax compliance, enforcement, revenue monitoring and broader economic activity.
Andhra Pradesh's September net GST growth was higher than the national post-settlement average of 8 per cent, according to the GSTN monthly report cited by the department. The state's growth was marginally ahead of Karnataka and Telangana, both at 14 per cent, and Kerala at 9 per cent.
IGST settlement to Andhra Pradesh rose 20.12 per cent to Rs 1,927.62 crore in September from Rs 1,604.69 crore a year earlier. The department said the increase reflected higher consumption of goods and services in the state.
Petroleum VAT collections rose 20.77 per cent to Rs 1,666.91 crore in September, while professional tax collections increased 3.99 per cent to Rs 43.53 crore. VAT on liquor rose 3.7 per cent to Rs 86 crore.
The department said the revenue growth came despite GST rate-rationalisation measures introduced during the year. It attributed the gains partly to technology-led enforcement, including AI-based data analytics, automated scrutiny, IGST input-tax-credit reversals, UPI-based analytics, electricity distribution company-linked registration verification and Aadhaar integration for professional tax.
The department said it uses data from GST returns to identify discrepancies and potential ineligible input-tax credit claims, while predictive analytics are used to identify high-risk taxpayers and areas of potential revenue shortfall.
Inter-departmental data sharing with agencies, including the Registration, Labour, Electricity, Department of Mines and Geology and Andhra Pradesh Capital Region Development Authority, has also been expanded, it said.
The department said electric machinery, machinery and equipment, iron and steel and plastics were among the leading commodities contributing to September's growth. Financial-related services, support services, professional and technical services and real estate services were among the leading service segments.
The department also said Andhra Pradesh's AI-based tax administration model had drawn interest from other states. It said delegations from Rajasthan and Chhattisgarh had visited the state in September to study its technology-led tax systems, while several other states were scheduling similar visits.
The revenue performance comes as Andhra Pradesh undertakes large infrastructure projects, including development in Amaravati, ports, highways and industrial corridors. The department said such activity has supported demand for construction materials, machinery and services, including through inter-state transactions that contribute to IGST settlements.
"Through intelligent enforcement, technology integration, and proactive compliance, Andhra Pradesh continues to set a benchmark for modern tax administration and is well-positioned for sustained and accelerated revenue growth in FY 2026-27," according to the statement.


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