Andhra Pradesh registered a record revenue performance in May 2026, with total tax collections rising 19% year-on-year to ₹4,950 crore from ₹4,165 crore in the corresponding month last year. The additional revenue of ₹737 crore, reflected improved economic activity and enhanced tax compliance across sectors.

According to a press release issued by Chief Commissioner of State Tax Babu A. on Monday, net GST collections reached ₹3,037 crore, registering a 16% growth compared to ₹2,629 crore collected in May 2025. The State also received ₹1,758.58 crore through IGST settlement, up 15.36% from the previous year. Petroleum VAT collections witnessed a sharp rise of 31.79% to ₹1,768.82 crore, while Professional Tax collections stood at ₹48.92 crore and VAT on liquor contributed ₹89 crore.

The State’s GST growth significantly outpaced the national average of 6% and ranked second among southern States, behind Karnataka’s 17% growth. Kerala recorded 15% growth, Telangana 14% and Tamil Nadu 12%.

Officials attributed the increase in collections to strong performance in petroleum products, real estate, construction, electrical machinery, bullion and jewellery sectors. The Commercial Taxes Department also credited technology-driven enforcement measures, including the use of Artificial Intelligence and Machine Learning to detect tax evasion, fake invoicing and reporting discrepancies for the improved performance. Data integration with various agencies helped expand the taxpayer base and curb leakages.

The department plans to further strengthen digital compliance systems and automated monitoring mechanisms during the 2026-27 financial year.