Vijayawada, Feb 1 (PTI) Andhra Pradesh recorded its highest-ever January GST collections since the rollout of the tax in 2017, with net GST revenue rising 6.72 per cent year-on-year to Rs 3,073 crore in January 2026, even as tax rates were cut on several key goods and services.

The growth comes despite GST rate reductions on consumer essentials, durables, pharmaceuticals, automobiles and cement, withdrawal of GST on life and medical insurance, and the removal of compensation cess on most products from September 2025.

The state's GST growth outpaced the national average of 5.8 per cent (excluding imports) and ranked second among southern states, behind Karnataka, while surpassing Kerala, Tamil Nadu and Telangana, according to official data.

Net GST collections in Andhra Pradesh have exceeded year-ago levels for ten consecutive months from April to January, pointing to sustained economic activity and improved tax compliance.

In January, gross GST collections stood at Rs 3,479 crore, with SGST revenue at Rs 1,284 crore, up 8.37 per cent, while IGST settlement rose 5.57 per cent to Rs 1,789 crore. Petroleum VAT collections increased 7.09 per cent to Rs 1,490 crore, and professional tax jumped 25.6 per cent to Rs 38 crore.

Officials attributed the revenue growth to AI-driven compliance measures, including data analytics-led scrutiny, targeted audits and identification of ineligible IGST input tax credit claims, which together yielded over Rs 144 crore in additional collections.

Total state revenues across taxes reached Rs 4,704 crore in January, up 7 per cent from a year earlier. Cumulative collections till January 2026 rose 4.79 per cent to Rs 44,221 crore.

Despite a lower base and the absence of rate-driven gains, the state’s revenue performance has remained stable, reflecting a widening tax base and stronger compliance, officials said. PTI MKT ANZ BAL BAL

Andhra Pradesh GST collections hit a record January high, driven by AI-led compliance despite recent rate cuts. Andhra Pradesh's net GST rose 6.72% to Rs 3,073 crore in January 2026, marking the highest-ever January GST collections. Gross GST was Rs 3,479 crore, with SGST at Rs 1,284 crore and IGST settlement at Rs 1,789 crore. Officials credited AI-driven compliance-data analytics, targeted audits and identification of ineligible IGST input tax credit claims-for over Rs 144 crore in additional collections, contributing to a widening tax base and stable revenue performance despite recent GST rate reductions and removal of compensation cess.