AP registers 5.8% growth in GST in Nov
Ongoing analytics, IGST reversals, targeted enforcement continue to sustain revenue buoyancy amid major reforms
image for illustrative purpose
Vijayawada: Andhra Pradesh Government absorbed the impact of the GST 2.0 reforms by recording a 5.80 per cent increase in net GST collections up to November mainly due to heightened economic activity in the State during 2025, along with the discipline instilled in taxpayers through strict compliance and enforcement measures.
Ongoing analytics, IGST reversals, and targeted enforcement continue to sustain revenue buoyancy amid major reforms and disruptions caused by natural factors.
According to Babu A, Chief Commissioner, State Tax, the State recorded moderate GST collections in November 2025, influenced by GST 2.0 rate reductions on automobiles, cement, FMCG, consumer electronics, dairy products, and others, effective from September 22 along with the withdrawal of GST on life/medical insurance and Compensation Cess on most items except tobacco products. November 2025 collections relate to business transactions from October 2025. Despite sector-wide declines, except in Profession Tax, compliance measures and volume growth resulting from lower rates cushioned the impact, enabling totalrevenue to reach 74 per cent of the target.
Babu said net GST collections in November stood at Rs2,697 crore, reflecting a 4.60 per cent YoY decline due to rate cuts. Total Commercial Taxes revenue, including other Acts, amounted to Rs4,124 crore, showing a 3.17 per cent YoY decline. These figures highlight revenue resilience driven by enforcement during reform transitions.
On reasons for sectoral declines, he pointed out that the fall in SGST (Rs1,109.17 crore compared to Rs1,197.14 crore in November 2024, a 7.35 per cent YoY decline) results from GST 2.0 rate reductions on automobiles, cement, FMCG, consumer electronics, and dairy products. While volumes increased, lower rates reduced overall yields. IGST settlement fell to Rs1,588.15 crore from Rs1,630.10 crore, a 2.57 per cent YoY decline, due to increased SGST ITC adjustments (Rs114 crore more than in November 2024) against IGST liabilities by automobile manufacturers, and the exclusion of Rs74 crore IGST reversals from provisional figures.
Revenue from petroleum products slightly declined to Rs1,306.61 crore from Rs1,320.57 crore, representing a 1.06 per cent YoY decline, mainly due to Cyclone Montha, which disrupted trade, vehicular movement, and transportation across the coastal region of Andhra Pradesh.
The key highlights during November include net GST collections contributing to State revenue were Rs2,697.32 crore, compared to Rs2,827.24 crore in November 2024, reflecting a 4.60 per cent decline.
Petroleum Products revenue was Rs1,306.62 crore in November 2025, compared to Rs1,320.57 crore in November 2024, marking a –1.06 per cent YoY decline due to cyclone-related disruptions.
VAT on liquor collections was Rs70.40 crore in November, 2025 as against Rs74 crore in November 2024, a 4.82 per cent year-on-year decline. Profession Tax collections rose sharply to Rs43 crore in November 2025 from Rs29.41 crore in November 2024, achieving a +46.22 per cent YoY increase.
