AI-led compliance lifts AP to record GST mop up

Vijayawada: Andhra Pradesh has recorded a robust 6.72 per cent year-on-year growth in net GST collections in January 2026, touching Rs3,073 crore, the highest January collection since the rollout of GST in 2017, despite major GST rate reductions and the implementation of GST 2.0 reforms.

The strong performance comes even as GST rates were cut on key consumer essentials, consumer durables, pharmaceuticals, automobiles and cement, and GST was withdrawn on life and medical insurance. Compensation Cess was also removed on most products, barring tobacco, with effect from September 22, 2025.

Notably, Andhra Pradesh’s 6.72 per cent growth exceeded the national average of 5.80 per cent (excluding imports). Among southern States, Andhra Pradesh ranked second only to Karnataka, outperforming Kerala, Tamil Nadu and Telangana, underscoring the State’s stronger economic momentum and compliance framework.

Officials said net GST collections in Andhra Pradesh have surpassed last year’s levels for ten consecutive months (April–January 2026), reflecting sustained growth in economic activity, consumption and tax compliance.

Key revenue highlights for January 2026 include net GST collections of Rs3,073 crore (6.72 per cent YoY); gross GST collections of Rs3,479 crore; SGST collections of Rs1,284 crore (8.37 per cent YoY); IGST settlement of Rs1,789 crore (5.57 per cent YoY); petroleum VAT of Rs1,490 crore (7.09 per cent YoY); and professional tax of Rs38 crore (25.60 per cent YoY).

Revenue growth has been driven by enhanced compliance measures, extensive use of AI-based data analytics, targeted audits and timely identification of ineligible IGST input tax credit claims. These initiatives alone yielded over Rs144 crore in additional collections, while improved IGST settlements further boosted State revenues.