Telangana’s GST Revenue Sees 18% Growth in 2024

Collections in the commercial tax department have increased in the state owing to a slew of steps taken by the department. Steps like more stringent verification of e-waybills and filing of returns have contributed to this increase. This assumes significance coming as it does after the Centre stopped reimbursement for GST revenue shortages to states. The five-year window period when it compensated loss of revenue to states ended last year.

In this milieu, among the bigger states Telangana’s GST revenue grew from Rs.4,424 crore in 2023 to Rs.5,211 crore in 2024. The 18 per cent increase is the second best among southern states after Karnataka’s 19 per cent. Andhra Pradesh, Tamil Nadu and Kerala registered growth rates of 3, 11 and 16 per cent, respectively in the corresponding period. 

The country’s average growth rate was 14 per cent in the same period.

Compliance by way of filing of returns by the 20th of every month is up from 70 per cent to 80 per cent. The e-way bills have since increased from 33 lakh to 39 lakh. Efforts are underway to reduce instances of bogus input tax credit by firms that don’t do any business but are engaged in creating



fake invoices by bringing in a two-tier verification process for refunds. 

The department, it may be recalled, unearthed a bogus invoices refund scam of around Rs.70 crore by e-bike and talcum powder makers recently. Sudden searching of goods carrying vehicles is another measure being increasingly taken to verify the compliance. A dashboard has been developed to identify tax frauds by creating a separate wing to identify them.

Owing to higher price of petrol and diesel in Telangana, these products which were earlier brought from Karnataka, were leading to a loss of substantial revenue. To curb this, waybills are being issued for petroleum products and liquor for a month. These measures have increased cash revenue that is income directly accruing to the department apart from that received by way of interstate settlement of GST revenue called IGST. 

The department is also holding GST audits for sectors where evasion has been rampant like the iron and steel industry. The film industry has also come under the scanner as many producers reportedly don’t file their returns in time.