AP posts 7.45% growth in GST collections for Sept '25 despite business slowdown
Vijayawada: The state recorded a notable increase in GST collections in Sept 2025, despite a slowdown in business transactions following the postponement of purchases after the rate cut announcement in Aug 2025. The revenue collected in Sept 2025 relates to transactions made in August 2025. Andhra Pradesh posted a 7.45% growth in net GST collections for Sept 2025.
Strategic policy initiatives and improved compliance mechanisms contributed to the state's sustained revenue growth, making September 2025 the second highest-grossing Sept since the GST regime was implemented in 2017. "Net GST collections for Sept reached Rs 2,789 crore, the highest ever for the month of Sept. Gross GST collections for Sept reached Rs 3,653 crore, the second highest ever for the month," chief commissioner of taxes Babu A said
He said that the state exceeded the records of the same months in previous financial years in the last six months. He explained that net GST collections increased by 7.45%, while gross collections rose by 4.19% over the same period of 2024, demonstrating robust performance. "Net GST collections increased by 12.67% in Sept 2025 when compared with the performance of 2023," said Babu.
He said that petroleum VAT increased by 3.1 per cent with revenue standing at ₹1,380 crore. Similarly, professional tax jumped by 43.75% in Sept and recorded a growth of 51.51% on a year-on-year basis. He explained that state GST (SGST) collections reached Rs 1,185 crore in Sept, registering an impressive 8.28% increase over September 2024. This rise reflects improved consumption patterns across sectors, effective tax administration, and strengthened enforcement mechanisms. "Compared to Sept 2023, SGST collections grew by 5.50%, demonstrating consistent year-on-year growth," said Babu.
He said that the state received Rs 1,605 crore through IGST settlement in Sept 2025, recording a 6.84% increase over Sept 2024. "Compared to Sept 2023, the settlement shows a higher growth of 18.62%, highlighting the effectiveness of monitoring systems, timely reconciliations, and efficient settlement mechanisms adopted by the govt," said the chief commissioner of taxes.
"State govt's strong efforts in strengthening enforcement, enhancing compliance mechanisms, deploying proactive analytics-based audits, and implementing targeted interventions have resulted in notable outcomes. Both gross and net GST collections experienced significant growth, effectively reversing the slowdown seen in the first quarter (Q1) of the financial year," Babu said.
He said that the state not only halted the earlier decline but also achieved respectable growth in September 2025, with total collections increasing by 4.63% from April to September 2025. He said that the turnaround demonstrates the effectiveness of policy measures, such as strengthening SGST & CGST collections, preventing fraudulent input tax credit claims, and ensuring greater accuracy and promptness in IGST settlements from the Centre. "This remarkable performance highlights not only the state's strong economic recovery but also the effectiveness of its tax administration, the resilience of its revenue structures, and the vibrancy of its commercial and industrial sectors," said Babu.
GFX
GST Collection Over the Years
Month Sept-24-------------- Sept-25
GST net collections Rs 2596------------Rs 2789
GST gross collections Rs 3506----------Rs 3653
AP's performance since GST launch (Rs in crore)
Month----------- GST Net Revenue---------GST Gross
Sept 2017 --------------1163--------------- 1802
Sept '18------- -------1500------------ 2023
Sept '19---------- 1507---------------- 1985
Sept '20---------- 1790 --------------- 2141
Sept '21----------- 2117--------------- 2595
Sept '22------------ 2189-------------- 3132
Sept '23----------- 2476--------------- 3658
Sept '24----------- 2596--------------- 3506
Sept '25----------- 2789--------------- 3653
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