GST 2.0 and cyclone fallout drag AP’s November revenues despite steady fiscal-year growth

Net GST collections for November 2025 stood at ₹2,697 crore, marking a 4.60 percent year-on-year decline from the ₹2,827.24 crore recorded in November 2024.

Published Dec 03, 2025 | 9:00 AMUpdated Dec 03, 2025 | 9:00 AM

GST.

Synopsis: Andhra Pradesh’s monthly GST revenue fell in November even though the State registered 5.8 percent growth in net GST collections so far this fiscal. Officials attributed the decline to lower GST 2.0 rates and disruptions caused by Cyclone Montha. The Commercial Taxes Department, however, said the State remains on track to meet its annual revenue target.

Andhra Pradesh recorded a noticeable decline in its Goods and Services Tax (GST) receipts in November, even as net collections had grown by 5.80 percent up to that month in the current fiscal. Officials attributed the dip to the GST 2.0 rate cuts and disruptions caused by Cyclone Montha.

The State Commercial Taxes Department said cumulative net GST collections have remained strong through 2025, supported by increased economic activity and strict enforcement measures that improved tax compliance.

November, however, reflected the effect of lower GST rates and sectoral slowdowns, resulting in reduced revenue yield.

Net GST collections for November 2025 stood at ₹2,697 crore, marking a 4.60 percent year-on-year decline from the ₹2,827.24 crore recorded in November 2024.

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Sector-wise revenues take a hit 

Officials attributed the fall largely to the GST 2.0 rate revisions implemented on 22 September 2025, which reduced taxes across key sectors including automobiles, cement, FMCG, consumer electronics and dairy products.

The State had also withdrawn GST on life and medical insurance and removed compensation cess on various items except tobacco. While transaction volumes increased following rate rationalisation, the lower rates translated into reduced tax inflows.

SGST collections accounted for a significant part of the decline. Revenue dropped to ₹1,109.17 crore in November 2025, down 7.35 percent from ₹1,197.14 crore a year earlier. Officials said this fall directly resulted from reduced GST rates on high-value sectors.

IGST settlements also saw a 2.57 percent year-on-year decline, slipping from ₹1,630.10 crore in November 2024 to ₹1,588.15 crore this November.

Increased SGST input tax credit claims, which were ₹114 crore higher than last year, by automobile manufacturers and the exclusion of ₹74 crore from earlier reversals contributed to the reduction.

Petroleum products revenue saw a marginal drop of 1.06 percent, falling to ₹1,306.61 crore from ₹1,320.57 crore last year. Authorities said Cyclone Montha significantly affected trade volumes, vehicular movement and transportation across the coastal belt, which in turn dented petroleum-linked revenues.

Liquor VAT collections showed a 4.82 percent annual decline, settling at ₹70.40 crore in November, compared to ₹74 crore in the same period last year.

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Profession tax offsets part of the monthly revenue dip

Profession tax has emerged as a bright spot. Collections rose sharply from ₹29.41 crore in November 2024 to ₹43 crore this year, recording an impressive 46.22 percent year-on-year growth. Officials credited this to expanded workforce strength and better compliance monitoring.

The combined collections from GST, petroleum products, liquor VAT and profession tax amounted to ₹4,123.50 crore in November 2025, compared with ₹4,258.55 crore in November 2024, reflecting a 3.16 percent overall decline.

Despite the monthly setback, officials said the State’s cumulative revenue remains stable. Targeted enforcement drives, systematic IGST adjustments and heightened taxpayer compliance have helped Andhra Pradesh retain 74 percent of its annual revenue target so far.

The Commercial Taxes Department expects revenue performance to stabilise in the coming months as markets adjust to GST 2.0 and cyclone-related disruptions ease.

(Edited by Dese Gowda)

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