The state records a growth of 5.78% in net GST collections by December 2025

Andhra Pradesh recorded a 5.78% year-on-year growth in net GST collections in December 2025, “defying revenue pressure” caused by reductions in GST rates and withdrawal of compensation tax under the GST 2.0 reforms, according to official data released by the state tax department.

In a statement on Thursday, Chief Commissioner of State Tax Babu A said net GST collections stood at ₹2,652 crore, the highest ever for the month of December since the GST regime began in 2017.

The income relates to business transactions carried out in November 2025. Officials attributed the growth to increased consumption, improved compliance and strengthened enforcement mechanisms, despite reduced tax rates on essential commodities, consumer durables, pharmaceuticals, cement and removal of VAT on life and health insurance.

For the ninth consecutive month (April-December 2025), Andhra Pradesh’s net GST revenue exceeded that of the corresponding period of the previous financial year, indicating continued economic activity.

The state’s growth rate of 5.78% also exceeded the national average of 5.61% (excluding imports). Among the southern states, Andhra Pradesh ranked second after Tamil Nadu (7.85%) and outperformed Karnataka, Kerala and Telangana.

Gross GST collections for December 2025 stood at ₹3,137 crore. While gross collections declined by 5.37% compared to December 2024 due to tax rationalization and tax withdrawal, the decline of 0.24% was marginal when tax collections were excluded, indicating resilience in the tax base.

Important revenue components also showed positive trends. State GST (SGST) collections rose to ₹1,102 crore, up 2.46%, while IGST settlement rose 8.29% to ₹1,549 crore due to better monitoring of ineligible input tax credit claims.

Petroleum VAT collections reached ₹1,448 crore, up 3.89%, and professional tax rose 38.32% in December alone, reflecting a growing taxpayer base.

Cumulatively, total revenue collections across all sectors till December 2025 stood at ₹39,517 crore, registering a growth of 4.53% over the previous year.

Officials said improved data analytics, targeted audits, stricter compliance with return rules and swift remedial action against defaulters were the key drivers behind the improved performance.

Mr Babu said the December figures indicated a stabilizing fiscal trajectory and underlined Andhra Pradesh’s strong compliance-driven revenue growth under the GST regime.