Telangana records steep fall in GST collections, lowest in country
HYDERABAD: Telangana’s Goods and Services Tax (GST) collections for September registered a decline of 5% compared to the same month last year, the sharpest fall among all States. The national average stood at a positive 7%.
Himachal Pradesh, also under Congress rule, was the only other State to record negative growth at 4%. The contrast with the previous regime is stark. In September 2023, under the Bharat Rashtra Samithi (BRS) government, Telangana topped the national charts with 33% growth. A year later, in September 2024, the Congress government managed 1% growth before slipping into a negative 5% this year.
Month-wise fall in trend
Month-wise figures show a steady decline through 2024-25. Collections grew 12% in April, 6% in May, 8% in June, 10% in July and 12% in August, before plunging into negative territory in September. Officials said the new GST tariff, introduced only in the last week of September, had negligible impact on revenues.
Economists described the contraction as worrying in a consumption-driven economy like Telangana, especially when all other major States reported positive growth. They said the fall indicated weakening business confidence and shrinking consumer demand.
BRS reaction
Reacting to the data, BRS working president and former minister KT Rama Rao criticised the Congress government, calling the figures a “symptom of Telangana’s economic destruction” under chief minister Revanth Reddy.
“It is a matter of deep shame for Telangana. Just two years ago, we were number one in GST growth; today, we are at the bottom. This sharp decline is proof of how badly the economy is being mishandled under Revanth Reddy,” he said.
He added that during the BRS regime, sectors from agriculture to IT had grown steadily, but under Congress rule, farming, real estate and other industries were collapsing. “Revanth’s regime, marked by chaos, corruption and inexperience, is leading to the economic destruction of the State,” he remarked.
