Amaravati, Jun 1 (PTI) Andhra Pradesh recorded Rs 4,987 crore GST revenue in May this year, marking the highest-ever revenue for the month since the Goods and Services Tax regime came into force in 2017.

Chief Commissioner of State Tax A Babu said the record collections were achieved despite GST 2.0 rate rationalisation measures aimed at simplifying the tax structure and enhancing ease of doing business.

"After April's record performance, Andhra Pradesh has logged its best-ever May with revenue of Rs 4,987 crore, registering an increase of Rs 737 crore over May 2025," Babu said in a press release.

According to the Commercial Taxes Department, total collections across all tax heads reached Rs 4,950 crore in May 2026 compared with Rs 4,165 crore in May 2025, registering a growth of 19 per cent. The increase was driven by higher GST collections, petroleum Value Added Tax (VAT) receipts and technology-driven compliance measures.

Net GST collections stood at Rs 3,037 crore in May, reflecting a 16 per cent increase over the corresponding month last year and outperforming the national average growth rate of 6 pc. Andhra Pradesh also ranked second among southern states in GST growth, behind Karnataka.

Integrated GST (IGST) settlement amounted to Rs 1,758.58 crore, recording a 15.36 per cent rise over May 2025, while petroleum VAT collections surged 31.79 pc year-on-year to Rs 1,768.82 crore, sustaining the state's revenue momentum, he said.

Professional tax collections stood at Rs 48.92 crore during May, supported by Aadhaar integration and expansion of the taxpayer base through departmental drives, while liquor VAT collections increased by 4.09 per cent.

The department noted that net GST collections in May have shown a consistent upward trend since the introduction of GST in 2017, rising from Rs 1,346 crore in May 2018 to Rs 3,037 crore in May 2026 despite multiple rate reductions over the years.

Key measures supporting revenue growth included AI-based data analytics, AI-powered scrutiny systems, AI-led IGST reversal enforcement, UPI-based transaction analytics, Distribution Companies (DISCOM)-linked registration verification and Aadhaar-integrated expansion of professional tax coverage.

These initiatives generated significant incremental revenue and strengthened compliance monitoring.

The department also expanded data integration with Real Estate Regulatory Authority (RERA), Andhra Pradesh Capital Region Development Authority (APCRDA), mining authorities and food delivery platforms to detect tax leakages, while leveraging artificial intelligence, predictive analytics and inter-departmental data sharing to improve enforcement and broaden the tax base, Babu added. PTI MS ADB

GST revenue growth driven by AI-based compliance and data integration lifted Andhra Pradesh to its best-ever May collections. Andhra Pradesh recorded its highest-ever May GST revenue since the introduction of GST, with strong year-on-year growth in total collections and net GST receipts despite GST 2.0 rate rationalisation measures. The revenue increase was supported by higher IGST settlement, petroleum VAT, professional tax and liquor VAT collections, along with technology-driven compliance measures. The department also expanded data integration and enforcement through AI-based analytics, scrutiny systems, UPI transaction analytics, Aadhaar integration and inter-departmental data sharing.