Andhra Pradesh reports an 18% increase in commercial tax collections in the first half of fiscal 2026-27, driven by technology-led compliance measures and large infrastructure projects, positioning the state for sustained revenue growth.
Andhra Pradesh’s commercial tax receipts climbed 18% year on year to Rs 30,435.98 crore in the first six months of fiscal 2026-27, with September delivering the strongest monthly take so far, according to the state Commercial Taxes Department and reports carried from Vijayawada by PTI. The figure was Rs 4,543.06 crore higher than the same period a year earlier, while September collections rose to Rs 4,986.18 crore, up 15.03% from Rs 4,334.84 crore in September 2025.
A key driver was the state’s goods and services tax performance. Net GST collections for April-September increased 18% to Rs 19,635.49 crore from Rs 16,760.21 crore in the comparable period last year. In September alone, net GST rose 14.10% to Rs 3,182.87 crore, outpacing the national post-settlement average of 8% cited by the department from the GST Network’s monthly report. That put Andhra Pradesh marginally ahead of Karnataka and Telangana, both at 14%, and above Kerala’s 9%, according to the same departmental account.
The department said the improvement reflected tighter compliance, stronger enforcement, better revenue monitoring and a broader pickup in economic activity. It also said collections held up despite GST rate-rationalisation measures introduced during the year. Officials pointed to technology-led tools such as artificial intelligence-based data analytics, automated scrutiny, IGST input-tax-credit reversals, UPI-based analytics, electricity-distribution-linked registration checks and Aadhaar integration for professional tax as part of the state’s tax administration push.
The September numbers also showed gains in other revenue streams. IGST settlement to Andhra Pradesh rose 20.12% to Rs 1,927.62 crore, while petroleum VAT collections increased 20.77% to Rs 1,666.91 crore. Professional tax rose 3.99% to Rs 43.53 crore and VAT on liquor climbed 3.7% to Rs 86 crore. The department said electric machinery, machinery and equipment, iron and steel and plastics were among the main goods supporting the increase, while financial services, support services, professional and technical services and real estate also contributed.
The revenue gains come against the backdrop of large infrastructure spending across the state, including work in Amaravati, ports, highways and industrial corridors, which the department said has helped sustain demand for construction materials, machinery and services. It added that Andhra Pradesh’s AI-based tax administration model has attracted interest from other states, with delegations from Rajasthan and Chhattisgarh visiting in September to study the system and other states reportedly lining up similar visits. In a statement, the department said Andhra Pradesh remained “well-positioned for sustained and accelerated revenue growth in FY 2026-27”.
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