Telangana posts sharpest GST decline in September, slips to bottom among states

BRS working president KT Rama Rao reacted sharply. He said the figures prove “economic destruction” under Chief Minister Revanth Reddy.

Published Oct 04, 2025 | 7:00 AMUpdated Oct 04, 2025 | 7:00 AM

Telangana CM Revanth Reddy. Credit: x.com/revanth_anumula, iStock

Synopsis: Telangana’s GST revenue dropped 5% to Rs 4,998 crore in September 2025, the steepest decline among Indian states, contrasting the national 7% growth. BRS leaders slammed Congress, alleging economic mismanagement. Telangana’s economic momentum is being questioned as other states like Bihar and Meghalaya report double-digit gains.

Telangana’s domestic GST revenue fell to Rs 4,998 crore in September 2025. It was Rs 5,267 crore in September 2024. The fall by 5 percent is the steepest among all states.

The decline in collections is worrying as the national trend was upwards. Telangana’s contraction raises questions on the state’s economic momentum.

According to provisional data from the Ministry of Finance, this is the sharpest fall among Indian states and union territories. It stands in contrast to the all-India average growth of 7 percent for the month.

The monthly GST report shows the difference clearly. Nationwide gross domestic GST revenue climbed from Rs 1,27,850 crore to Rs 1,36,525 crore, 7 percent increase. Telangana alone lagged behind.

Officials have not given explanations yet. But the decline is linked to sluggish industry, delays in infrastructure projects, and the impact of recent floods.

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Telangana has been a growth engine in recent years. This reversal suggests deeper stress in sectors like IT, pharma, and real estate.

Compared to other states, Telangana’s fall is an outlier. Bihar (17 percent), Punjab (13 percent), and Madhya Pradesh (21 percent) posted double-digit gains. Southern states too saw positive growth: Karnataka (7 percent), Tamil Nadu (4 percent), and Kerala (13 percent).

Andhra Pradesh with a stressed economy recorded a modest 4 percent rise. Few states reported declines: Himachal Pradesh (-4 percent), Delhi (-1 percent), and Manipur (-1 percent), but none matched Telangana’s -5 percent.

Meghalaya led with a 27 percent surge, driven by mining and tourism.

BRS slams Congress

BRS working president KT Rama Rao reacted sharply. He said the figures prove “economic destruction” under Chief Minister Revanth Reddy.

In a post on X, KTR said it was a matter of shame that Telangana ranked last in GST growth in September 2025.

He recalled that under KCR, Telangana stood No. 1 just two years ago. He said the sharp fall is evidence of mismanagement under Congress rule.

According to him, during the BRS regime, every sector thrived — from agriculture to IT. Under Congress, every sector is collapsing.

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KTR said Revanth Reddy’s regime is marked by chaos, corruption, and inexperience. He recalled that Telangana clocked 33 percent GST growth in September 2023-24. Under Revanth, it dropped to 1 percent in September 2024-25 and now to -5 percent in 2025-26.

For April–September 2025, the state’s overall GST numbers show some resilience. Pre-settlement SGST collections rose 4 percent to Rs 10,859 crore, up from Rs 10,398 crore last year. But the growth is still below the national average of 9 percent.

Post-settlement SGST, including apportioned IGST, grew 3 percent to Rs 22,231 crore. The all-India figure was 6 percent. The numbers show strength in compliance and settlements, but the monthly volatility is a concern.

BRS leader Konatham Dileep echoed KTR.

In a message on X, he said Revanth Reddy has “ruined a performing state like Telangana.” He pointed out that Himachal Pradesh, another Congress-ruled state, was the only one close to Telangana with -4 percent growth. “All other states are showing positive growth,” he said.

(Edited by Amit Vasudev)

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