AP registers 5.8% growth in GST in Nov despite reforms from Sept 22

Andhra Pradesh Government absorbed the impact of the GST 2.0 reforms by recording a 5.80% 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 total revenue to reach 74% of the target.

Babu said net GST collections in November stood at ₹2,697 crore, reflecting a 4.60% YoY decline due to rate cuts. Total Commercial Taxes revenue, including other Acts, amounted to ₹4,124 crore, showing a 3.17% 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 (₹1,109.17 crore compared to ₹1,197.14 crore in November 2024, a 7.35% 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 ₹1,588.15 crore from ₹1,630.10 crore, a 2.57% YoY decline, due to increased SGST ITC adjustments (₹114 crore more than in November 2024) against IGST liabilities by automobile manufacturers, and the exclusion of ₹74 crore IGST reversals from provisional figures.

Revenue from petroleum products slightly declined to ₹1,306.61 crore from ₹1,320.57 crore, representing a 1.06% 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 ₹2,697.32 crore, compared to ₹2,827.24 crore in November 2024, reflecting a 4.60% decline. Petroleum Products revenue was ₹1,306.62 crore in November 2025, compared to ₹1,320.57 crore in November 2024, marking a –1.06% YoY decline due to cyclone-related disruptions.

VAT on liquor collections was ₹70.40 crore in November, 2025 as against ₹74 crore in November 2024, a 4.82% year-on-year decline. Profession Tax collections rose sharply to ₹43 crore in November 2025 from ₹29.41 crore in November 2024, achieving a +46.22% YoY increase.