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The Finance Base
GST

Telangana’s GST, VAT and Profession-Tax Receipts Rise 16% to ₹44,372 Crore in First Half of FY 2026–27

Telangana’s reported GST, VAT and profession-tax receipts rose 16% year over year to ₹44,372 crore in April–September 2026, with GST collections up 19%.

By TheFinanceBase Team 2 min read
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Telangana collected a reported ₹44,372 crore from GST, VAT and profession tax combined in April–September 2026, up ₹6,103 crore, or 16%, from the same six months a year earlier. GST was the largest component and grew faster than VAT. These figures are from The Times of India’s 2 October 2026 report of Commercial Taxes Department data; the specific department release for the period was not available in the cited material.

What Telangana collected in April–September 2026

The Times of India reported the following Commercial Taxes Department figures for the first half of FY 2026–27. The total covers three tax heads only; it is not a measure of all Telangana government receipts.

Tax head April–September 2026 April–September 2025 Reported year-over-year change
GST ₹25,049 crore ₹21,061 crore Up 19%; increase of ₹3,988 crore
VAT ₹18,824 crore ₹16,708 crore Up 13%; increase of ₹2,116 crore
Profession tax ₹499 crore Not stated in the report Broadly unchanged; current-period figure described as provisional
Combined total of the three tax heads ₹44,372 crore ₹38,269 crore Up 16%; increase of ₹6,103 crore

Totals and component figures are as reported by The Times of India. GST represented 56% of this three-head total, according to the report. That share should not be confused with GST’s share of Telangana’s entire own-tax revenue.

Why GST drove most of the increase

GST collections rose by a reported ₹3,988 crore year over year, compared with a ₹2,116 crore increase in VAT. GST’s reported 19% growth also exceeded VAT’s 13%. The newspaper said officials associated GST activity with automobiles, works contracts, construction and real estate, finance and banking, and electronics and communication. It did not provide collections by sector, so the figures do not show which sector contributed most.

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What the September figures show

For September 2026 alone, the report put combined GST, VAT and profession-tax receipts at ₹7,303 crore, 15% above ₹6,368 crore in September 2025.

Tax head September 2026 September 2025
GST ₹4,184 crore ₹3,646 crore
VAT ₹3,045 crore ₹2,645 crore
Profession tax ₹74 crore ₹77 crore
Combined total ₹7,303 crore ₹6,368 crore

These September amounts are also figures reported by The Times of India. Profession tax was lower in September than a year earlier even as the combined total increased.

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How to read the figures against Telangana’s broader tax record

The 16% increase applies to the reported combined receipts from GST, VAT and profession tax—not to every revenue source or every tax collected by the state. VAT in Telangana is described in the report as arising primarily from petrol and liquor.

Historical measures also require care. The Times of India’s account of a CAG report said State GST (SGST) made up approximately 41–42% of Telangana’s own-tax revenue from 2019–20 through 2023–24, and that own-tax collections in 2023–24 fell ₹3,206 crore short of budget estimates. Those historical figures use a different base and period from GST’s reported 56% share of the three tax heads in April–September 2026.

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Telangana’s Directorate of Economics and Statistics reported in Telangana’s Economic Pulse, November 2024, that GST revenue through September reached 42.2% of the FY25 budget estimate and that Q2 FY25 GST revenue grew 8.6% year over year. Its GST measure includes the state’s share of CGST. Because that definition may not match the department category used for the 2026–27 figures, these historical statistics are context, not a direct growth comparison.

The CAG’s Telangana State Accounts Report index provides access to state accounts across fiscal years and notes that the PDF accounts are final if online data conflict with them. It does not independently establish the specific April–September 2026 figures reported here.

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