Among the southern States, the state ranked second only to Tamil Nadu, which recorded a growth of 7.85 percent, and outperformed Karnataka (5.12 percent), Kerala (3.69 percent) and Telangana (2.45 percent).
Published Jan 04, 2026 | 8:50 PM ⚊ Updated Jan 04, 2026 | 8:50 PM
GST.
Synopsis: Andhra Pradesh recorded a 5.78 percent year-on-year rise in net Goods and Services Tax collections in December at ₹2,652 crore, the highest for the month since the rollout of GST, even as gross collections fell to ₹3,137 crore following rate rationalisation introduced in September. The State’s net GST collections have now grown for nine consecutive months, a trend the tax department attributed to improved compliance.
Andhra Pradesh posted net GST collections of ₹2,652 crore in December 2025, up from ₹2,507 crore in December 2024, registering a year-on-year growth of 5.78 percent, Chief Commissioner of State Tax Babu A said in an official release.
The increase in net GST collections came even as gross GST collections for December declined by 5.37 percent to ₹3,137 crore from ₹3,315 crore a year earlier.
This followed GST rate rationalisation rolled out from 22 September 2025, which included rate cuts on essentials, select consumer durables, pharmaceuticals and cement, the removal of GST on life and medical insurance, and the withdrawal of the compensation cess on all items except tobacco.
This is the highest net GST collected by the State in the month of December since the rollout of GST in 2017. The growth rate exceeded the national average (excluding imports) of 5.61 percent.
Among the southern States, the state ranked second only to Tamil Nadu, which recorded a growth of 7.85 percent, and outperformed Karnataka (5.12 percent), Kerala (3.69 percent) and Telangana (2.45 percent).
Net GST collections in December have more than doubled over eight years, rising from ₹1,210 crore in 2017 to ₹2,652 crore in 2025.
Barring a decline in 2020 due to the pandemic and a marginal decline in 2024, net GST collections have shown a largely upward trend over the period.
Gross GST collections rose steadily until 2023 before slowing in 2024 and 2025, a trend the department attributed to GST rate rationalisation and the gradual withdrawal of the compensation cess. The gap between net and gross collections has widened since these changes.
In the automobiles, cement and electronics sectors, turnover grew by 23.69 percent during the period, while GST liability declined by 9.35 percent and GST cash payments fell by 69.57 percent. The department said this reflected lower tax rates and higher utilisation of input tax credit.
Petroleum VAT collections increased by 3.89 percent year-on-year to ₹1,448 crore in December 2025. Professional tax collections rose by 38.32 percent during the month and by 45.56 percent cumulatively up to December 2025.
Cumulative collections under all major revenue heads up to December 2025 stood at ₹39,517 crore, compared with ₹37,804 crore in the corresponding period of the previous year, registering a growth of 4.53 percent.
Net collections have exceeded those of the corresponding months of the previous year for nine consecutive months from April to December 2025.
The department said that, excluding the compensation cess, which has been withdrawn on most items, the decline in gross GST collections was 0.24 percent.
The tax department compared Andhra Pradesh’s performance with that of Odisha, noting that the latter recorded a 12.16 percent decline in GST collections during the same period. It attributed Andhra Pradesh’s performance to enhanced compliance, improved data analytics and targeted enforcement.
According to the release, data analytics were used to identify Input Tax Credit (ITC) anomalies, supported by targeted audits, stricter return-filing enforcement and focused recovery drives. In December 2025 alone, reversals of ineligible IGST ITC resulted in collections of ₹296 crore.
IGST settlements to the State rose by 8.29 percent year-on-year to ₹1,549 crore in December 2025. This included ₹63.21 crore collected from reversals of ineligible ITC and ₹77.80 crore attributed to higher inflows of goods and services into the State.
The department also said that performance-linked deployment of officers, asset- and bank-based recovery from chronic defaulters, and renewed action against large taxpayers who had stopped filing returns contributed to the increase in net GST collections.
