State records 5.78% growth in net GST collections in December 2025

Andhra Pradesh recorded a 5.78% year-on-year growth in Net GST collections in December 2025, “defying revenue pressures” caused by GST rate reductions and withdrawal of compensation cess under the GST 2.0 reforms, according to official data released by the State Tax Department.

In a statement on Thursday, Chief Commissioner of State Tax Babu A said the Net GST collections stood at ₹2,652 crore, the highest-ever for the month of December since the GST regime began in 2017.

The revenue pertains to business transactions undertaken in November 2025. Officials attributed the growth to increased consumption, improved compliance, and strengthened enforcement mechanisms despite reduced tax rates on essential goods, consumer durables, pharmaceuticals, cement, and removal of GST on life and medical insurance.

For the ninth consecutive month (April–December 2025), Andhra Pradesh’s Net GST collections exceeded those of the corresponding period in the previous financial year, signalling sustained economic activity.

The State’s growth rate of 5.78% also surpassed the national average of 5.61% (excluding imports). Among southern States, Andhra Pradesh ranked second after Tamil Nadu (7.85%), performing better than Karnataka, Kerala, and Telangana.

Gross GST collections for December 2025 amounted to ₹3,137 crore. While gross collections declined by 5.37% compared to December 2024 due to tax rationalisation and cess withdrawal, the decline was marginal at 0.24% when cess collections were excluded, indicating resilience in the tax base.

Key revenue components also showed positive trends. State GST (SGST) collections rose to ₹1,102 crore, marking a 2.46% increase, while IGST settlement increased by 8.29% to ₹1,549 crore due to improved scrutiny of ineligible input tax credit claims.

Petroleum VAT collections reached ₹1,448 crore, up 3.89%, and Professional Tax surged by 38.32% in December alone, reflecting an expanding taxpayer base.

Cumulatively, total revenue collections across all sectors up to December 2025 touched ₹39,517 crore, registering a growth of 4.53% over the previous year.

Officials said enhanced data analytics, targeted audits, stricter return compliance, and swift recovery actions against defaulters were key drivers behind the improved performance.

Mr. Babu said the December figures indicated a stabilising fiscal trajectory and underlined Andhra Pradesh’s strong compliance-driven revenue growth under the GST regime.