The overhaul of the GST regime may have benefited the consumers at large, but the Telangana government is bearing the brunt of revenue loss due to the rate cuts. The State’s domestic GST revenue fell to ₹4,998 crore in September 2025, compared to ₹5,267 crore in September last year. The fall by 5 pc is the steepest among all States.
The decline in collections is worrying as the State is already grappling with a difficult financial situation, marked by rising debts and growing costs of welfare schemes. The State’s revenue contraction raises questions about its economic momentum.
According to provisional data from the Ministry of Finance, this is the sharpest fall among Indian States and Union Territories. It is in sharp contrast to the all-India average growth of 7 pc for the month.
The monthly GST report shows the difference clearly. Nationwide gross domestic GST revenue climbed from ₹1,27,850 crore to ₹1,36,525 crore, a 7 pc increase. Telangana alone lagged.
The decline is linked to sluggish industry, delays in infrastructure projects, and the impact of recent floods.
Telangana has been a growth engine in recent years. This reversal suggests deeper stress in sectors like IT, pharma, and real estate.
Compared to other states, Telangana’s fall is an outlier. Andhra Pradesh, with a stressed economy, recorded a modest 4 pc rise. Few states reported declines: Himachal Pradesh (-4 pc), Delhi (-1 pc), and Manipur (-1 pc), but none matched Telangana’s -5 pc.
Meghalaya led with a 27 pc surge, driven by mining and tourism.
Blame game
The opposition Bharat Rashtra Samithi (BRS) working president KT Rama Rao said the figures proved “economic destruction” under Chief Minister A Revanth Reddy.
In a post on X, KTR said it was a matter of shame that Telangana ranked last in GST growth in September 2025.
He recalled that under KCR, Telangana stood No. 1 just two years ago. He said the sharp fall is evidence of mismanagement under the Congress rule.
According to him, during the BRS regime, every sector thrived — from agriculture to IT. Under Congress, every sector was collapsing.
KTR said Revanth Reddy’s regime is marked by chaos, corruption, and inexperience. He recalled that Telangana clocked 33 pc GST growth in September 2023-24. Under Revanth, it dropped to 1 pc in September 2024-25 and now to -5 pc in 2025-26.
For April–September 2025, the state’s overall GST numbers show some resilience. Pre-settlement SGST collections rose 4 pc to ₹10,859 crore, up from ₹10,398 crore last year. But the growth is still below the national average of 9 pc.
Post-settlement SGST, including apportioned IGST, grew 3 pc to ₹22,231 crore. The all-India figure was 6 pc. The numbers show strength in compliance and settlements, but the monthly volatility is a concern.
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