AP records highest GST collection in first quarter

Vijayawada: Andhra Pradesh recorded highest net GST collections amounting to 78,860 crore, reflecting a growth of 3.40% in first quarter of financial year. Total tax collections in Q1 (including all sectors) stood at Rs 213,361 crore, compared to Rs 13,096 crore in FY 2024-25, showing a growth of 2.02%, which indicates a sustained and healthy growth trajectory over the same period, according to Commissioner of Commercial Taxes Babu A.

For three consecutive months - April, May, and June 2025, the State has recorded the highest-ever net GST collections for each respective month when compared to any previous financial year.

This remarkable performance highlights the State’s strong economic recovery, effective enforcement actions and the success of targeted policy initiatives aimed at expanding the tax base and enhancing compliance. The steady upward trend in GST collections not only demonstrates the resilience of the State’s revenue systems but also the increasing vitality of its commercial and industrial sectors.

In June 2025, Andhra Pradesh collected a total tax (all sectors) revenue of Rs 4,167.66 crore, an increase from Rs 3,910.47 crore in June 2024. This reflects a growth of 6.58%. The growth was mainly driven by higher GST collections (Rs 2,598 crore, up from Rs 2,419 crore) and notable gains under VAT on petroleum products and profession tax.

The net GST collections for June 2025 stood at Rs 2,591 crore, the highest - ever for the month of June since the implementation of the GST regime in 2017.

Compared to June 2024, there was a significant rise in net GST collections, emphasising enhanced tax compliance, streamlined IGST settlements, and an expanding tax base.

The rise in revenue from petroleum products over the past two months indicates a boost in economic activity and better compliance in the sector.

Professional tax collections experienced an exponential increase in Q1, with a notable 70% growth in June 2025 compared to the same period last year. The notable rise in net GST collections is significant because it shows the actual revenue credited to the State’s account after adjustments for IGST settlements and related transfers. Unlike gross GST collections, which include total tax paid across different components, net collections give a clearer and more accurate view of the State’s fiscal health.

This figure represents the real funds available for Andhra Pradesh to spend on public services, infrastructure and welfare programmes, thus serving as a reliable indicator of the State’s economic strength and available resources, according to Commissioner of Commercial Taxes Babu A.

This has been achieved by utilising data analytics and Al tools to identify outliers, prevent revenue leakages and curb tax evasion effectively.

In this context, the most accurate indicator of the State’s financial health is net revenue collection, which has grown by 7.10% under the GST Act and 6.58% under all Acts in June 2025 compared to the previous year. This growth reflects the actual revenue accrued to the State, as it considers the SGST and IGST settlement amounts, providing a more precise picture of the State’s fiscal situation.