AP Tax Collections Hit Record Rs 30,436 Crore In First Half

Vijayawada:Andhra Pradesh’s commercial tax collections touched a record Rs 30,435.98 crore in the first half of 2026-27, registering an 18 per cent increase over the Rs 25,892.92 crore collected during the corresponding period last year.

This September recorded the highest-ever monthly collection of Rs 4,986.18 crore.

The September collection was Rs 651.34 crore, or 15.03 per cent, higher than the Rs 4,334.84 crore collected in Sept 2025, signifying a strong finish to the first half of the financial year.

Net GST collections emerged as a major driver of the economy, as it rose to Rs 19,635.49 crore during April-Sept 2026 from Rs 16,760.21 crore in the same period last year -- a growth of 18 per cent. September alone saw the net GST rise 14.10 per cent to Rs 3,182.87 crore from Rs 2,789.50 crore a year earlier.

The GST department attributed the growth to improved tax compliance, stronger enforcement, enhanced revenue monitoring and wider economic activity. It said the increase came despite the GST 2.0 rate-rationalisation reforms aimed at “simplifying the tax structure and reducing compliance costs.”

Petroleum-related VAT rose by 20.77 per cent to Rs 1,666.91 crore in September, while IGST settlement increased 20.12 per cent to rs 1,927.62 crore. Professional tax collections rose by 3.99 per cent to Rs 43.53 crore.

Chief commissioner of state tax, Babu A, said technology had become the “cornerstone of its enforcement strategy”, with the department deploying AI and data analytics to improve the pace, precision and productivity of tax administration.

The department has introduced AI-powered scrutiny, Aadhaar-based taxpayer authentication, predictive analytics and performance dashboards. It is also using GSTR-1, GSTR-2A/2B and GSTR-3B data to identify discrepancies and prevent ineligible input tax credit utilization, he said.

Babu said the AI-based tax administration model had attracted interest from other states. Revenue secretary to the central government has, at a recent national coordination meeting in Delhi, commended AP’s initiative as a “model for AI-led tax administration” that other states could draw upon.

Following this, Delhi, Tamil Nadu, Bihar, Rajasthan, Chhattisgarh, Kerala, Assam and Meghalaya contacted the AP commercial taxes department to study or replicate the model. A delegation from Rajasthan and Chhattisgarh completed a three-day study visit to Andhra Pradesh in September.

The department has also strengthened inter-departmental data sharing with the departments of registration, labour, electricity, DMG and APCRDA to widen the tax base. A 100 per cent digital payment drive across commercial establishments is aimed at reducing cash leakages and strengthening audit trails.

Electric machinery and equipment, iron and steel, and plastics were among the leading commodity segments contributing to September’s growth. Financial-related services, support services, professional and technical services and real estate services were the leading service sectors.