T posts strong GST growth, boosted by IGST settlement

Hyderabad: Telangana has emerged as one of the stronger performers in Goods and Services Tax (GST) collections, recording a sharp 25% rise in post‑settlement revenues till May 2026.Data released by the Union finance ministry on Monday shows the state benefited significantly from Integrated GST (IGST) apportionment, underscoring both its expanding tax base and the importance of inter‑state trade.Telangana’s post‑settlement GST revenue climbed to ₹8,894 crore during April-May 2025‑26, up from ₹7,101 crore in the same period last year. Before IGST settlement, state GST collections stood at ₹4,387 crore, compared with ₹3,945 crore a year earlier — an 11% growth rate.This was among the strongest in southern India and well above the national pre‑settlement average of 3%. Kerala led pre‑settlement growth at 16%, rising from ₹2,783 crore to ₹3,226 crore. Telangana followed with 11%, ahead of Karnataka (7%) and

Andhra Pradesh

(4%).

Tamil Nadu

was the only major southern state to see a decline, with collections falling 3% to ₹8,501 crore.After IGST settlement, the picture remained favourable. Kerala posted the highest growth at 33%, but Telangana’s 25% increase was close to Andhra Pradesh (27%). Tamil Nadu rebounded with a 29% rise despite its weaker pre‑settlement numbers.Absolute revenuesIn absolute terms, Telangana’s ₹8,894 crore post‑settlement revenue was higher than Kerala’s ₹6,613 crore and Andhra Pradesh’s ₹6,834 crore, though below Karnataka’s ₹17,786 crore and Tamil Nadu’s ₹15,316 crore — reflecting the larger economies of those states.

The data highlight how crucial IGST settlement is for states. Telangana’s collections rose by more than ₹4,500 crore after settlement, pointing to the state’s strong share of revenue from inter‑state trade and services.Across India, post‑settlement GST revenues of states and Union Territories grew 23% to ₹2.06 lakh crore from ₹1.67 lakh crore last year. Telangana’s 25% growth outpaced the national average.Tax officials note that sustained growth in both pre‑ and post‑settlement revenues reflects Telangana’s expanding economic base, strong compliance, and rising contributions from trade and services. Despite broader economic uncertainties, the state continues to maintain a healthy GST trajectory compared with many of its regional peers.