AP registers 6.72 per cent rise in net GST collections in Jan 2026 - Times of India

Vijayawada: Andhra Pradesh registered a 6.72% increase in net GST collections in Jan 2026, defying widespread GST rate reductions and tax withdrawals under the GST 2.0 reforms, officials said.

Net collections stood at Rs 3,073 crore, the highest ever for the month since the GST regime was rolled out in 2017. The revenue relates to transactions undertaken in Dec 2025."The growth was achieved despite lower tax rates on major consumer essentials, durables, pharmaceuticals, automobiles and cement, and the withdrawal of GST on life and medical insurance from September 22, 2025. Increased consumption following rate cuts, along with stronger compliance measures and focused enforcement, helped sustain revenue growth, making January 2026 the best-performing January so far," chief commissioner of state taxes, Babu A, told TOI.

For 10 consecutive months from April to January 2026, the state's net GST collections exceeded those recorded in the corresponding months of the previous financial year, indicating steady economic activity. Compared to January 2025, net GST collections rose by 6.72%, outperforming the national average growth of 5.80% (excluding imports). Among southern states, Andhra Pradesh ranked second after Karnataka (7.23%), ahead of Kerala (5.69%), Tamil Nadu (4.86%) and Telangana (4.74%).

Gross GST collections in January 2026 stood at ₹3,479 crore. While this reflected a 3.46% decline over January 2025 due to rate cuts and the withdrawal of Compensation Cess on most items except tobacco, the decline was only 0.21% when cess was excluded, highlighting resilience in the tax base.A key positive was that Andhra Pradesh achieved this growth from a relatively modest base, reflecting consistency rather than volatility.

Unlike Odisha, which recorded a sharp 9.67% decline, Andhra Pradesh maintained positive growth, underlining better compliance and revenue resilience.Babu said that state GST collections rose to ₹1,284 crore, posting an 8.37% year-on-year increase, while IGST settlement reached ₹1,788.79 crore, up 5.57% compared to January 2025. Officials attributed the higher IGST settlement to intensified scrutiny of ineligible input tax credit claims in exempt transactions and timely reversals, besides higher inflow of goods and services for consumption.Petroleum VAT continued to support revenues, with collections of ₹1,490 crore, marking a 7.09% rise over the previous year. Professional Tax collections surged 25.60% in January, while cumulative collections up to January 2026 grew by 43.50%, reflecting expansion of the tax base and improved enforcement.Overall, total collections across all sectors touched ₹4,704 crore in January 2026, registering a 7% growth over ₹4,396 crore in January 2025.

Cumulatively, collections up to January 2026 stood at ₹44,221 crore, up 4.79% year on year.Babu said sustained use of data analytics, AI-based compliance monitoring, targeted audits, tighter coordination with central agencies, stricter return-filing enforcement and swift recovery from defaulters helped reverse the early fiscal slowdown and placed the state on a stable, upward revenue trajectory under the GST regime.