DoneVijayawada: Andhra Pradesh recorded a robust 5.78% growth in net GST collections in Dec 2025, underscoring the resilience of the state’s economy despite sweeping tax rate reductions and structural changes under GST 2.0. Net GST revenue for the month stood at 2,652 crore, the highest-ever Dec collection since the GST regime was introduced in 2017.The figures relate to business transactions undertaken in Nov. The performance assumes significance as GST rates were cut on several consumer essentials, consumer durables, pharmaceuticals, and cement, while GST on life and medical insurance was removed from Sept 22. In addition, GST compensation cess was withdrawn on all items, barring tobacco and tobacco products.Compared to Dec 2024, when net GST collections were 2,507 crore, the state posted a 5.78% rise, marginally higher than the national average growth of 5.61% (excluding imports). Among southern states, AP ranked second after Tamil Nadu, and outperformed Karnataka, Kerala and Telangana, reflecting stronger growth momentum.Chief commissioner of state taxes Babu A told TOI that the sustained growth, despite rate rationalisation, highlights the effectiveness of the govt’s compliance and enforcement strategy. “The Dec performance shows that improved compliance, targeted analytics-based audits, and timely IGST settlements can offset the impact of rate cuts. Our focus was on plugging leakages and expanding the tax base rather than short-term revenue extraction,” he said.Gross GST collections for Dec 2025 stood at 3,137 crore. While this represented a YoY decline due to lower rates and withdrawal of cess, officials noted that the fall was minimal when adjusted for cess collections. Without cess, the decline in gross collections was negligible, pointing to stabilisation after reforms.Sector-wise data showed strong turnover growth of 23.69% in automotive, cement and electronics, indicating higher business activity and consumption. At the same time, overall GST liability declined due to rate rationalisation and increased utilisation of input tax credit, which sharply reduced GST cash payments by businesses.IGST settlement emerged as a major support, rising 8.29% YoY to 1,549 crore, aided by stricter scrutiny of ineligible ITC claims and reversals. Petroleum VAT collections rose by 3.89% to 1,448 crore, while professional tax surged 38.32%, reflecting an expanding taxpayer base. Cumulatively, total collections across all taxes from April to Dec 2025 grew 4.53%, reversing the slowdown seen in the first quarter of the fiscal. “The consistent improvement, achieved on a modest base, positions AP favourably at both regional and national levels, and signals a stabilising upward fiscal trajectory in the coming quarters,” said Babu.———GFXNet GST collectionsDecember 2024: 2,507December 2025: 2,652Growth: 5.78%Gross GST (except cess)December 2024: 3,107December 2025: 3,099Key December 2025 componentsSGST: 1,102 (↑2.46%)IGST settlement: 1,549 (↑8.29%)Petroleum VAT: 1,448 (↑3.89%)Professional Tax: 42 (↑38.32%)Total collections (all taxes)December 2024: 4,047December 2025: 4,246 (↑4.91%)April–December cumulative growth: 4.53% MSID:: 126289612 413 |
