Andhra Pradesh Sees 19% Surge in Tax Revenue in May 2026
A.P. records 19% rise in tax collection in May 2026
The Hindu
Image: The Hindu
In May 2026, Andhra Pradesh reported a 19% increase in tax collections, totaling ₹4,950 crore, driven by enhanced economic activity and compliance. Key contributors included a 16% rise in GST and a significant 31.79% increase in petroleum VAT. The state outperformed the national GST growth average of 6%.
- 01Andhra Pradesh's tax collections reached ₹4,950 crore in May 2026, up from ₹4,165 crore in May 2025.
- 02Net GST collections rose to ₹3,037 crore, marking a 16% increase year-on-year.
- 03Petroleum VAT collections surged by 31.79% to ₹1,768.82 crore, reflecting strong demand.
- 04The state ranked second in GST growth among southern states, following Karnataka's 17% growth.
- 05Technology measures, including AI and Machine Learning, were credited for improved tax compliance and detection of evasion.
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Andhra Pradesh achieved remarkable tax collection figures in May 2026, with a 19% increase year-on-year, totaling ₹4,950 crore compared to ₹4,165 crore in May 2025. This growth was attributed to enhanced economic activity and improved tax compliance across various sectors. The Chief Commissioner of State Tax, Babu A., reported that net Goods and Services Tax (GST) collections reached ₹3,037 crore, reflecting a 16% increase from the previous year. Additionally, the state benefited from ₹1,758.58 crore in Integrated Goods and Services Tax (IGST) settlements, up 15.36% from last year. Notably, petroleum VAT collections experienced a significant rise of 31.79%, contributing ₹1,768.82 crore. The state's performance outpaced the national average GST growth of 6%, ranking second among southern states, just behind Karnataka's 17% growth. The increase in collections was supported by strong performances in sectors such as petroleum, real estate, and construction. The Commercial Taxes Department emphasized the role of technology, particularly Artificial Intelligence and Machine Learning, in enhancing tax compliance and detecting discrepancies. Plans are underway to further bolster digital compliance and monitoring systems in the upcoming financial year.
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The increase in tax collections will enhance the state's financial capacity to fund public services and infrastructure projects.
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