Hyderabad : Telangana ’s tax revenues maintained strong momentum in the first half of 2026-27, with collections under GST , VAT and profession tax rising 16% to ₹44,372 crore during April-Sept. GST emerged as the biggest growth driver, contributing nearly two-thirds of the increase in the state’s tax receipts.
Collections under the three tax heads rose from ₹38,269 crore in the corresponding period last year to ₹44,372 crore, reflecting an increase of ₹6,103 crore, according to figures released by the commercial taxes department. GST collections grew 19% to ₹25,049 crore from ₹21,061 crore a year ago, accounting for 56% of the total collections. VAT revenues, primarily from petrol and liquor, increased 13% to ₹18,824 crore from ₹16,708 crore. Profession tax collections remained largely unchanged at ₹499 crore, though officials said the figures were provisional.
Of the total increase in tax revenues, GST alone contributed ₹3,988 crore, while VAT added another ₹2,116 crore, underlining the growing importance of GST as Telangana’s principal source of own tax revenue. The report noted that State GST (SGST) was the single largest component of Telangana’s own tax revenue between 2019-20 and 2023-24, accounting for around 41-42% of the total. the CAG had pointed out that collections in 2023-24 fell short of budget estimates by ₹3,206 crore While the state’s own tax revenues recorded substantial growth during the period. BOX Hyderabad : Telangana’s collections under GST, VAT and profession tax rose 15% year-on-year to ₹7,303 crore in Sept, compared with ₹6,368 crore in the same month last year. GST collections increased to ₹4,184 crore from ₹3,646 crore, while VAT revenues rose to ₹3,045 crore from ₹2,645 crore. Profession tax collections, however, declined 4% to ₹74 crore from ₹77 crore.
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Officials said key sectors driving GST collections include automobiles, works contracts, construction and real estate-related activities, finance and banking, and electronics and communication. The trend is consistent with observations made by the Comptroller and Auditor General (CAG) in its state finances audit report. Download the TOI App.