The Andhra Pradesh government recorded its highest ever net GST collection for February at ₹3,061 crore in 2026. This represents an increase of 5.45% compared to February 2025, signaling a robust economic trajectory despite significant tax cuts introduced under GST 2.0.
State Revenue Commissioner Babu A said in a report on Sunday that the revenue growth is particularly notable as it follows the introduction of rate cuts on consumer goods, pharmaceuticals and cement in September 2025, along with the complete withdrawal of GST from life and health insurance.
Mr Babu attributed this resilience to increased consumption driven by lower rates and a sophisticated AI-powered compliance network.
With a cumulative growth of 5.86% for FY 2025-26, Andhra Pradesh has currently outperformed several neighboring states, including Karnataka (5.70%), Telangana (4.57%) and Tamil Nadu (3.10%).
A key factor in this success was the aggressive use of AI-based data analytics to identify ineligible Input Tax Credits (ITCs). This resulted in an IGST settlement of ₹1,810 crore, a 7.24% increase over the previous year. In addition, professional tax collection saw a massive increase of 31.97%, reflecting the expanding taxpayer base.
The AP also promoted a policy of performance-based transfers, deploying high-performing officers to high-income areas. Officials say this “meritocracy-first” approach, combined with tough enforcement against defaulters, has successfully reversed the slowdown earlier in the year and positioned Andhra Pradesh as a national leader in fiscal mobilisation, he added.
Published – 01 March 2026 20:57 IST
