GST collections in Andhra Pradesh surged by more than 70% in a span of four years.

Honey Gupta
2 Min Read

In the 2018-19 financial year, Andhra Pradesh collected 25,331 crore as goods and services tax (GST) revenue, which averaged around 2,100 crore monthly. However, things have improved significantly since then. Now, the state consistently collects between 3,500 to 4,000 crore in GST every month. In April, Andhra Pradesh achieved a record-high collection of 4,329 crore, the highest ever since GST was introduced. This marks a substantial increase, with monthly collections up by over 70%.

These GST figures are essential because they reflect how much people are spending and the state’s economic health. During the COVID-19 pandemic, GST collections dropped to around 2,500 crore in 2020 and 2021 due to lockdowns and economic challenges. But, as the pandemic eased and the economy began to recover in 2022, GST collections consistently exceeded 3,000 crore and even crossed the 4,000 crore mark in 2023.

Join Now
Whatsapp Group
Whatsapp Channel
Telegram channel

Experts believe that these increased GST collections mean more revenue for the state, primarily in the form of State GST (SGST). Changes in tax rates for various products over the years and improvements in tax compliance have contributed to this boost. It also indicates that people in the state have more spending power.

Dr. Choudari Appa Rao, a former economics professor at Andhra University, noted that GST collections reflect both consumer spending and the state’s economy’s growth. Dr. M Prasada Rao, a member of the State Finance Commission, added that GST has broadened the tax base, even reaching rural areas through income generated from agricultural produce.

GST is composed of two parts: Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST). The Centre and the state respectively collect these taxes on every transaction of goods and services within the state. Unlike previous taxes, GST is based on the destination of the goods and services, and the revenue goes to the consuming states

TAGGED:
Share This Article
Follow:
Hi I am 23 Year old Blogger specialized in writing on various domains such as travel, online courses, business opportunity, Finance, and Insurance
Leave a comment