Hyderabad: Telangana collected Rs 44,372 crore from Goods and Services Tax (GST), value-added tax (VAT), and profession tax in the first six months of the 2026-27 financial year, a 16 percent increase from the same period last year.
Data from the commercial taxes department showed that collections increased by Rs 6,103 crore from Rs 38,269 crore, which was recorded between April and September last year.
GST drives Telangana tax revenue growth
During April-September, GST collections increased 19 per cent to Rs 25,049 crore compared to Rs 21,061 crore in the same period last year. GST accounted for 56 per cent of the combined collections under the three tax categories.
Of the Rs 6,103 crore increase in total collections, GST contributed Rs 3,988 crore.
VAT collections also rose 13 per cent during the six months. It reached Rs 18,824 crore compared to Rs 16,708 crore a year earlier. VAT revenue mainly comes from petrol and liquor.
VAT contributed Rs 2,116 crore to the overall increase in collections.
Profession tax collections remained almost unchanged at Rs 499 crore.
CAG had highlighted GST’s role
The tax collection numbers are in line with observations made by the Comptroller and Auditor General (CAG) in its state finances audit report.
The CAG noted that State GST was Telangana’s largest own-tax revenue source between 2019-20 and 2023-24. SGST accounted for around 41 to 42 per cent of the state’s own tax revenue during that period.
