AP Tax Collections Surge 18% to Rs 25,450 Crore Till August
Net GST revenue grows 18% as compliance, enforcement and economic activity improve
Vijayawada: Andhra Pradesh recorded an 18.05 per cent year-on-year increase in commercial taxes collections to Rs 25,449.80 crore during the first five months of 2026-27 till August.
According to the commercial taxes department, collections stood at Rs 21,558.09 crore during the corresponding period last year.
In August alone, the state collected Rs 4,983.84 crore - an increase of Rs 485.41 crore, or 10.79 per cent, over Rs 4,498.44 crore in August 2025. Net GST collections in August rose 6.43 per cent to Rs 3,168.65 crore from Rs 2,977.24 crore a year ago.
Cumulatively, net GST collections increased 18 per cent to Rs 16,452.62 crore from Rs 13,970.71 crore during the same period last year. The department attributed the increase to better tax compliance, intensified enforcement, enhanced revenue monitoring and broader economic activity.
The state received an IGST settlement of Rs 1,979.74 crore, which was Rs 366.76 crore, or 22.74 per cent, higher than the Rs 1,612.98 crore received in August 2025.
The latest settlement was the third-highest received by the state.
Petroleum VAT collections grew 21.03 per cent to Rs 1,681.55 crore, while professional tax increased 7.68 per cent to Rs 45.20 crore. VAT on liquor rose 2.88 per cent to Rs 84 crore. Collections under subsumed Acts declined 45.55 per cent to Rs 5 crore.
Chief commissioner of state tax, Babu A, said the department had made technology a key part of its enforcement strategy, deploying AI and data analytics to improve tax administration.
The department has introduced AI-powered scrutiny to identify high-risk taxpayers through GSTR cross-validation and ITR reconciliation, Aadhaar-based authentication to curb fraudulent registrations and ghost firms, real-time performance dashboards and inter-departmental data sharing.
Predictive analytics, he said, are also being used to identify revenue shortfall zones and high-risk sectors for enforcement.
The department said revenue growth was achieved despite the GST 2.0 rate-rationalisation reforms, which simplified the tax structure and reduced compliance costs. Automobiles and parts, plastics, machinery and appliances led the growth in August, while mineral products, pharmaceuticals and electrical machinery faced pressure following rate reductions.
Services including professional, technical and business services, maintenance, repair and installation, and accommodation and food services also recorded strong performance.
Andhra Pradesh's cumulative net GST growth of 18 per cent till August was in line with the national average of 16 per cent. Karnataka recorded 23 per cent, Kerala 21 per cent, Telangana 19 per cent, Tamil Nadu 16 per cent and Odisha four per cent.
Babu said the state's AI-led tax administration model had drawn attention from other states.
He noted that the Union revenue secretary commended the initiative at a national coordination meeting in Delhi, while teams from Tamil Nadu, Bihar, Rajasthan, Chhattisgarh, Kerala, Assam and Meghalaya had contacted the AP Commercial Taxes Department to study and replicate the model.
Infograph:
AP TAX REVENUE — AUGUST 2026
- Rs 25,449.80cr — Total Commercial Taxes collected till August
- 18.05% — Year-on-year cumulative growth
- Rs 4,983.84cr — Total tax collections in August
- 10.79% — August year-on-year growth
- Rs 3,168.65cr — August Net GST
- 6.43% — August Net GST growth
- Rs 16,452.62cr — Net GST collected till August
- 18% — Cumulative Net GST growth
- Rs 1,979.74cr — August IGST settlement
- 22.74% — IGST settlement growth
- Rs 1,681.55cr — Petroleum VAT collections
- 21.03% — Petroleum VAT growth
- Rs 45.20cr — Profession Tax collections
- 7.68% — Profession Tax growth
- 18% vs 16% — AP cumulative Net GST growth vs national average
- Rs 3,891.71cr — Increase in cumulative commercial taxes collections over last year
