Telangana's Tax Revenue Climbs 3% Following GST 2.0 Rollout
Hyderabad has emerged as a focal point for economic analysis as Telangana reports a significant uptick in commercial tax collections since the introduction of GST 2.0 last year. Official data reveals a robust 3% increase, underscoring the state's steady economic expansion and the efficacy of the revised tax framework.
Detailed Breakdown of Tax Performance
From April 2025 to January 2026, total commercial tax collections in Telangana soared to ₹64,914 crore, marking a substantial rise of ₹2,063 crore compared to the ₹62,851 crore recorded in the corresponding period of the previous year. This growth trajectory is attributed to the state's resilient economy, which has continued to thrive under the new GST regime.
Monthly and Sectoral Insights
In January 2026 alone, commercial tax revenue reached ₹6,903 crore, up from ₹6,673 crore in January 2025, reflecting a 3% growth and an increase of ₹230 crore. A closer look at specific tax categories reveals varied performances:
- GST Collections: January 2026 saw GST contributions amount to ₹4,050 crore, a 4% increase from ₹3,907 crore in January 2025, adding ₹143 crore to the state's coffers.
- VAT (Petrol): This segment experienced a slight dip, with collections falling to ₹1,444 crore from ₹1,453 crore, a marginal 1% decline of ₹9 crore.
- VAT (Liquor): In contrast, liquor tax collections surged impressively to ₹1,341 crore from ₹1,236 crore, registering an 8% growth and an increase of ₹105 crore.
- Profession Tax: This category declined to ₹67 crore from ₹77 crore, representing a 13% drop and a decrease of ₹10 crore.
Cumulative Growth Analysis
Over the cumulative period from April 2025 to January 2026, the growth trends become even more pronounced:
- GST Collections: Totalled ₹36,217 crore, up 2% from ₹35,418 crore, with an increase of ₹799 crore.
- VAT (Petrol): Collections stood at ₹13,737 crore, reflecting a 4% growth from ₹13,209 crore and an increase of ₹528 crore.
- VAT (Liquor): Reached ₹14,163 crore, a 5% rise from ₹13,505 crore, amounting to an additional ₹658 crore.
- Profession Tax: Increased to ₹797 crore from ₹719 crore, registering an 11% growth and adding ₹78 crore to the total.
These figures highlight the dynamic nature of Telangana's tax landscape, with GST and liquor VAT leading the charge in revenue generation, while minor declines in petrol VAT and profession tax indicate areas for potential policy refinement.
