GST Revenue Falls 2% in Andhra Pradesh Key Insights for Taxpayers
Andhra Pradesh has recorded a 2% decline in GST revenue as per the latest figures released by the Ministry of Finance. This dip, while marginal, has raised questions about sectoral performance, tax base expansion, and revenue enforcement in the state.
Let’s break down what this means for businesses, consultants, and policymakers.
What the Numbers Say
According to the May 2025 GST collection data:
| Particulars | April 2024 | April 2025 | % Change |
|---|---|---|---|
| GST Collection (Andhra Pradesh) | ₹3,527 crore | ₹3,456 crore | -2% |
| National GST Collection | ₹1.87 lakh crore | ₹1.91 lakh crore | +2.1% |
Source: PIB Release, Ministry of Finance – May 2025
Possible Reasons Behind the Revenue Dip
While national GST revenues showed positive growth, Andhra Pradesh bucked the trend. Some of the likely factors include:
- Drop in construction and real estate activity
One of the highest GST contributors in the state, this sector may have slowed due to reduced approvals and rising raw material costs. - Delay in GST returns or mismatch in Input Tax Credit (ITC)
Revenue leakage often stems from non-filers or fraudulent claims. - Agriculture-led rural slowdown
Lower rural demand may have reduced consumption-based GST inflows. - Lower enforcement activity
Less scrutiny or fewer audits during election periods may reduce compliance pressure.
Legal and Policy Lens
While a 2% dip might seem small, Section 6 of the Andhra Pradesh GST Act gives state authorities powers to monitor evasion and improve revenue through audits and inspections. However, implementation on ground matters.
In 2024, the CBIC and GST Council had directed all states to strengthen enforcement with AI-based return scrutiny. Andhra Pradesh had reportedly lagged in deploying these tools.
Expert Insight: What Tax Consultants Say
According to CA Ramesh Babu, a tax advisor in Vijayawada:
“Many small businesses are still not fully compliant with e-invoicing and timely GSTR filings. The revenue dip is a reflection of that.”
He adds that timely reconciliations between GSTR-1, GSTR-3B, and GSTR-2B can help both businesses and the department avoid revenue gaps.
How Businesses Can Respond
Here’s a quick checklist for businesses operating in Andhra Pradesh:
✅ File GSTR-1 and GSTR-3B on time
✅ Use invoice-matching tools to claim accurate ITC
✅ Avoid reliance on unregistered vendors
✅ Respond promptly to GST department notices
Need help staying compliant? Efiletax GST Services can support with automated filings, ITC reconciliation, and audit defense.
FAQs
Q1. Is Andhra Pradesh the only state with negative GST growth this month?
No. A few other states like Bihar and Kerala also showed marginal declines.
Q2. Can the Centre compensate states for GST shortfall?
Compensation cess has ended in June 2022. States now manage revenue shortfalls through internal efforts.
Q3. How can taxpayers track their GST impact in the state?
Using GSTN portal analytics and AIS/TIS data can help in state-wise GST tracking.
Summary
GST revenue in Andhra Pradesh declined 2% in April 2025, against a national rise of 2.1%. Key reasons include slower construction activity, ITC mismatches, and delayed compliance. Experts urge better filing discipline and digital reconciliation.