Vijayawada: Andhra Pradesh has achieved its highest-ever Goods and Services Tax (GST) revenue collection for May, with total tax receipts reaching ₹4,987 crore in May 2026. This marks an increase of ₹737 crore compared to the same month last year, representing a robust 19% year-on-year growth. The strong performance follows a record-breaking April and reflects sustained momentum in revenue mobilisation by the state's commercial taxes department. Notably, this growth has been achieved despite GST rate rationalisation measures aimed at simplifying the tax structure and supporting economic activity.
Net GST collections and comparative performance
Net GST collections for May stood at ₹3,037 crore, up from ₹2,629 crore in May 2025, registering a growth of 16%. The state's GST growth significantly outpaced the national average of 6% and ranked second among southern states, behind Karnataka's 17%. Andhra Pradesh performed better than Kerala, Telangana, and Tamil Nadu in terms of GST revenue growth, according to Babu A., chief commissioner of state taxes.
IGST settlement and petroleum VAT contribution
The state received an Integrated Goods and Services Tax (IGST) settlement of ₹1,758.58 crore from the Centre during May, up 15.36% from the previous year. Additionally, petroleum Value Added Tax (VAT) collections surged by 31.79% to ₹1,768.82 crore, emerging as a major contributor to overall revenue growth. The chief commissioner attributed the strong performance to a series of technology-driven reforms and enforcement initiatives.
Technology-driven reforms and enforcement
The commercial taxes department has deployed artificial intelligence (AI) and machine learning tools for taxpayer scrutiny, fraud detection, invoice verification, and compliance monitoring. Key initiatives include AI-based analytics, automated GST scrutiny, UPI transaction monitoring, Aadhaar-linked professional tax expansion, discom-linked business verification, and integration of data from RERA, APCRDA, mining, and registration departments. These measures have helped identify tax leakages and widen the tax base.
Focus on high-risk sectors
The chief commissioner stated that the department has intensified monitoring of sectors such as real estate, construction, mining, restaurants, and online food delivery platforms. This targeted approach aims to ensure compliance and reduce evasion in high-risk areas.
Future outlook for 2026-27
Looking ahead, the focus for 2026-27 will remain on AI-driven enforcement, expansion of digital compliance systems, anti-evasion measures, and broader integration of tax intelligence databases. These initiatives are expected to sustain revenue growth and strengthen the state's finances.
