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Hyderabad: Andhra Pradesh recorded a robust 6.72 per cent year-on-year growth in net GST collections for January 2026, reaching Rs 3,073 crore, the highest January figure since GST's introduction in 2017.
This performance persists despite GST rate reductions on key consumer essentials, durables, pharmaceuticals, automobiles, and cement, plus the withdrawal of GST on life and medical insurance.
Compensation Cess was also removed from most products (except tobacco) effective September 22, 2025, amid GST 2.0 reforms. The state's growth outpaces the national average of 5.80 per cent (excluding imports) and ranks second among southern states, behind only Karnataka - ahead of Kerala, Tamil Nadu, and Telangana.
Net GST collections in Andhra Pradesh have consistently exceeded last year’s levels for ten consecutive months from April - January 2026, reflecting sustained growth in economic activity, consumption and tax compliance.
The growth in revenue is being attributed to enhanced compliance mechanisms, extensive use of AI-based data analytics, targeted audits, and timely identification of ineligible IGST input tax credit claims.
These measures alone resulted in over Rs 144 crore in additional collections, while improved IGST settlements added significant revenue inflows to the State, said chief commissioner of state tax, Babu A.
Despite a modest base and the absence of tax-rate driven windfalls, Andhra Pradesh has demonstrated steady, non-volatile growth, contrasting with sharp declines seen in some other states.
The performance highlights the state’s resilient revenue systems, efficient tax administration, and expanding tax base.
The sustained upward trend signals a strong and stabilising fiscal trajectory, positioning Andhra Pradesh favourably at both the regional and national level as a leader in GST revenue mobilisation.