AP Clocks Record ₹5,543 Crore Tax Revenue in April, Up 12%
Officials described the performance as a robust start to the 2026–27 financial year
VIJAYAWADA: Andhra Pradesh recorded its highest-ever monthly commercial tax revenue of ₹5,543.33 crore in April 2026, registering a strong 12.08 per cent year-on-year growth despite the adverse impact of GST 2.0 rate rationalisation.
According to the Commercial Taxes Department, the state collected ₹5,543.33 crore in April 2026 compared to ₹4,945.92 crore in April 2025, an increase of ₹598.78 crore. Officials described the performance as a robust start to the 2026–27 financial year.
The department said the growth came despite an estimated annual revenue impact of ₹8,000 crore due to GST 2.0 reforms and tax rate reductions aimed at improving ease of doing business. Nearly ₹4,500 crore of this impact was absorbed during the second half of 2025–26.
Net GST collections stood at ₹3,796.91 crore, reflecting a 6.83 per cent growth, while gross GST collections excluding cess reached ₹4,323.07 crore. Petroleum VAT collections surged to ₹1,613.36 crore, up 26.72 per cent, while professional tax collections rose to ₹42.90 crore, marking a 21.15 per cent increase.
The Centre’s IGST settlement to the state increased to ₹2,194.89 crore in April 2026 from ₹1,942.84 crore in April 2025, registering a 12.97 per cent growth.
Officials attributed the improved performance largely to technology-driven enforcement and artificial intelligence-based compliance monitoring. AI-powered scrutiny systems have been deployed to detect fake invoicing, circular trading, GST return mismatches and suspicious input tax credit claims in real time.
The department also introduced UPI transaction analytics, identifying over 20,391 unregistered PAN holders with high-value transactions and bringing several businesses into the GST net.
Another key reform involved linking GST registrations with DISCOM electricity consumer accounts to prevent fraudulent registrations and ensure genuine operations.
Enforcement was intensified in sectors such as construction, mining, restaurants and online food delivery platforms through data integration with RERA, CRDA, the Registration Department, Directorate of Mines and Geology, and platforms like Swiggy and Zomato.
Professional tax collections saw a significant rise during 2025–26, increasing from ₹373 crore to ₹517 crore, supported by Aadhaar-linked employer verification and integration with Labour, ESI and EPF databases.
Chief commissioner of State Tax Babu Ahmad said the state is increasingly relying on AI-led enforcement, predictive analytics and inter-departmental data sharing to improve compliance and widen the tax base.
The department has prepared a Revenue Augmentation Action Plan for 2026–27, focusing on AI-driven audits, automated fraud detection, e-way bill reconciliation and expansion of professional tax coverage, with a target of ₹751 crore from professional tax during the current fiscal.
Officials said petroleum, construction, real estate, bullion and jewellery sectors contributed significantly to April’s growth, while GST revenues from vehicles, cement and metals were affected by tax rate cuts.
