Andhra Pradesh achieves record GST collection in February 2026

The Government of Andhra Pradesh has recorded its highest-ever February Net GST collection, reaching ₹3,061 crore in 2026. This marks a 5.45% growth compared to February 2025, signalling a robust economic trajectory despite significant tax cuts introduced under the GST 2.0.

Commissioner of State Taxes Babu A, in a release on Sunday, said the revenue growth wis particularly notable as it followed the September 2025 implementation of rate reductions on consumer essentials, pharmaceuticals, and cement, alongside the total withdrawal of GST on life and medical insurance.

Mr. Babu attributed this resilience to increased consumption driven by lower rates and a sophisticated, AI-powered compliance net.

With a cumulative growth of 5.86% for the 2025-26 fiscal year, Andhra Pradesh was currently outperforming several neighboring States, including Karnataka (5.70%), Telangana (4.57%), and Tamil Nadu (3.10%).

A key driver for this success had been the aggressive use of AI-powered data analytics to identify ineligible Input Tax Credits (ITC). This led to an IGST settlement of ₹1,810 crore, a 7.24% increase over the previous year. Furthermore, Professional Tax collections saw a massive surge of 31.97%, reflecting an expanding taxpayer base.

AP also pioneered a performance-based transfer policy, deploying high-performing officers to high-stakes revenue zones. Officials state that this “meritocracy-first” approach, combined with strict enforcement against defaulters, successfully reversed early-year slowdowns, positioning Andhra Pradesh as a national leader in fiscal mobilisation, he added.