Commercial Tax Collections Surge 22% in October

Touch Rs 7,738 Crore

metro india news  I hyderabad : If the current trajectory continues through the remaining months of the financial year, Telangana’s own revenue base is expected to strengthen further, offering greater fiscal space for priority spending. The October numbers, in particular, highlight that commercial tax collections remain a critical and reliable pillar of the state’s financesbad

Telangana’s commercial tax collections registered robust growth in October 2026, with the state treasury receiving Rs 7,738 crore — a sharp 22 per cent rise over the Rs 6,332 crore collected in the same month last year. The jump translated into an additional Rs 1,406 crore for the government in a single month, underscoring steady expansion in economic activity, consumption and tax compliance.

GST continued to form the largest component of the collections. In October, GST receipts stood at Rs 4,593 crore, up from Rs 3,914 crore a year earlier — an increase of Rs 679 crore, or 17 per cent. Officials attribute the rise to higher volumes of goods and services transactions across sectors and sustained formalisation of the economy.

VAT collections, however, posted even stronger growth. Revenue from VAT rose 31 per cent to Rs 3,065 crore in October 2026 from Rs 2,342 crore in October 2025, adding Rs 723 crore extra. The sharper rise in VAT is significant because petroleum products and liquor — items outside the GST net — remain major contributors under this head. Profession tax collections also edged up modestly from Rs 76 crore to Rs 80 crore, registering a 5 per cent increase.

The positive trend is not confined to a single month. In the first seven months of the current financial year (April–October 2026), total commercial tax collections reached Rs 52,113 crore. This marks a 17 per cent increase over the Rs 44,598 crore collected in the corresponding period of the previous year, yielding an additional Rs 7,515 crore for the state.

Breaking down the seven-month figures, GST contributed Rs 29,630 crore, up 19 per cent from Rs 24,974 crore last year (an additional Rs 4,656 crore). VAT collections totalled Rs 21,893 crore, a 15 per cent rise from Rs 19,049 crore, adding Rs 2,844 crore. Profession tax brought in Rs 590 crore against Rs 575 crore earlier, a modest 3 per cent growth.

Together, GST and VAT accounted for nearly 99 per cent of the total commercial tax revenue of Rs 52,113 crore, contributing Rs 51,523 crore between them. Of the overall additional revenue of Rs 7,515 crore in the seven-month period, GST alone provided Rs 4,656 crore while VAT added Rs 2,844 crore.

The sustained improvement in tax collections is being viewed as a healthy signal for Telangana’s economy. Higher own-tax revenues strengthen the state’s fiscal position and enhance its ability to fund welfare schemes, infrastructure projects and developmental programmes without excessive reliance on borrowings.

Finance department sources noted that the double-digit growth in both the monthly and cumulative figures reflects better economic momentum and improved tax administration. The 22 per cent jump in October and the consistent 17 per cent rise over seven months have provided a welcome boost to the state exchequer.