AP records highest-ever net GST collections at Rs 3,061 crore in February

Vijayawada: Andhra Pradesh recorded robust growth in net goods and services tax (GST) collections for Feb, despite major tax rate reductions under the GST 2.0 reforms. The reforms included lower rates on essential commodities, consumer durables, pharmaceuticals and cement, along with the withdrawal of GST on life and medical insurance premiums. The GST compensation cess was also removed on all items except tobacco and tobacco products.The revenue collected in Feb pertains to business transactions undertaken in Jan. Despite the reduction in rates, higher consumption levels, improved compliance, and strategic enforcement initiatives helped the state achieve the highest-ever net GST collections for Feb since the introduction of the GST regime in 2017. "Net GST collections for Feb stood at ₹3,061 crore, marking a 5.45 percent increase over ₹2,902 crore collected in Feb 2025. For 11 consecutive months, net GST collections consistently surpassed the corresponding months of the previous financial year, indicating sustained economic activity and stable consumption growth," said state chief commissioner of taxes, Babu Ahmed.He said gross GST collections (excluding cess) amounted to ₹3,562 crore, compared to ₹3,569 crore during the same period a year ago. The marginal decline of just 0.22 percent reflects the impact of rate reductions and cess withdrawal, while maintaining revenue stability. Cumulatively, from April to Feb, the state recorded a 5.86 percent growth in net GST revenue, placing it ahead of several southern states, Babu said. Karnataka registered 5.70% growth, Telangana 4.57%, Tamil Nadu 3.10%, Kerala 2.95%, while Odisha recorded a decline of 8.18%. Unlike Odisha's sharp contraction of 9.67% in Feb, Andhra Pradesh maintained positive growth, demonstrating resilience and improved compliance, Babu added.Sector-wise performance also remained encouraging. SGST collections reached ₹1,251 crore, registering a 2.96 percent year-on-year increase, while IGST settlement from the Government of India stood at ₹1,809.85 crore — 7.24% higher than Feb 2025."The rise in IGST settlement was largely attributed to the commercial taxes department's efforts in identifying ineligible input tax credit claims in exempted sectors such as thermal power, solar and wind energy units, and ensuring timely reversals. An additional ₹44.16 crore was mobilised through such corrective measures," said Babu.