New Delhi, July 20: Andhra Pradesh’s ability to generate Goods and Services Tax (GST) revenue relative to the size of its economy has weakened steadily over the past several years, according to information furnished by the Union Finance Ministry in the Lok Sabha. The State’s post-settlement GST-to-GSDP ratio declined to 1.9% in 2025-26, down from a peak of 2.4% in 2018-19, indicating that GST collections have grown more slowly than the State’s Gross State Domestic Product (GSDP).
Replying to an Unstarred Question by YSR Congress Party MP Y.S. Avinash Reddy, Minister of State for Finance Pankaj Chaudhary stated that Andhra Pradesh’s post-settlement GST revenue stood at ₹34,301 crore during 2025-26 against a current-price GSDP of ₹17.62 lakh crore, resulting in a GST-to-GSDP ratio of 1.9%. In comparison, the ratio was 2.1% in 2024-25, 2.2% during 2021-22 to 2023-24, and reached its highest level of 2.4% in 2018-19.
| Financial Year | GST Revenue (₹ Cr.) | GSDP (₹ Cr.) | GST-to-GSDP Ratio |
| 2018-19 | 20,746 | 8,73,721 | 2.4% |
| 2019-20 | 20,346 | 9,25,839 | 2.2% |
| 2020-21 | 19,181 | 9,78,581 | 2.0% |
| 2021-22 | 24,333 | 11,31,629 | 2.2% |
| 2022-23 | 28,589 | 13,07,976 | 2.2% |
| 2023-24 | 31,606 | 14,23,900 | 2.2% |
| 2024-25 | 33,301 | 15,91,226 | 2.1% |
| 2025-26 | 34,301 | 17,62,357 | 1.9% |
The Finance Ministry also released quarterly figures of SGST and IGST settlements received by Andhra Pradesh. During 2025-26, the State received ₹15,211 crore as SGST and ₹19,090 crore through IGST settlements, taking the total post-settlement GST revenue to ₹34,301 crore, an increase of about ₹1,000 crore over ₹33,301 crore received in 2024-25.
Responding to a query on whether the Union Government had assessed the impact of discontinuation of major welfare schemes in Andhra Pradesh on household consumption and GST collections, the Finance Ministry said no such study has been conducted so far.
On the issue of special financial assistance, the Centre stated that the 16th Finance Commission had consulted State Governments before finalising its recommendations and that the views of Andhra Pradesh have been incorporated in the Commission’s report. The Ministry added that grants-in-aid are released based on the recommendations accepted by the Union Government, without indicating any separate assistance specifically linked to GST revenue shortfalls in Andhra Pradesh.
