Vijayawada: Andhra Pradesh has demonstrated remarkable resilience and efficiency in tax collection. It has successfully reversed the downward trend that was observed in November and December, 2024.The state achieved sustained growth in GST revenue during the first quarter of 2025, with April emerging as an exceptional month for revenue collection. This May, net GST collections reached ₹2,714 crore. This was the highest amount collected for the month of May since the introduction of GST. The performance not only signifies effective tax administration but also reflects the positive economic momentum in the state. “The steady increase in tax revenue underscores strength of the state’s financial framework and the success of various initiatives designed to enhance tax compliance and enforcement,” said Babu A, AP chief commissioner of taxes.This growth in net collections is particularly significant because net revenue represents the actual revenue accrued to the state after accounting for IGST settlements and other components. While gross collections reflect the total tax paid, net collections provide a more accurate indicator of the state’s fiscal health by considering the revenues available for state expenditures. The gross GST collections for May, 2025 have registered a negative growth of (-) 2.24%. The main reason for the negative growth is the negative collection in cess, SGST and CGST payment with a decline of ₹52 crore (- 20.02%), ₹51 crore (-4.11%), and ₹40 crore (-4.01%), respectively. However, the overall impact of these negative cess and CGST growth is minimal on the state’s actual revenue, as net revenue collections continue to demonstrate strong performance.“The resilience of net collections underscores the effectiveness of state-level tax administration and enforcement efforts in ensuring steady revenue inflows,” said Babu. According to data from the Goods and Service Tax Network (GSTN), Central and State tax administrations showed divergent revenue trends during April-May this year. Central tax collections declined by 7.2% year-over-year, while state tax administrations recorded 3.2% growth during the same period. Without the central tax administration’s negative performance, the overall gross GST collections would have shown a 3%+ growth rate instead of being dragged down by the central component.
