Telangana GST Revenue Growth Slows to 5.1% in FY2025

Telangana GST revenue growth​ Slows Sharply; Experts Raise Alarm Over Fiscal Management

According to government figures, Telangana’s total GST collections between April 2024 and March 2025 stood at ₹62,987 crore. While the Central GST increased by 6.6%, the State GST component grew by only 3.7%, marking a significant decline from the previous fiscal year’s overall growth of 10%.

The subdued numbers have drawn criticism from political leaders and industry observers alike. Former Finance Minister and BRS senior leader T. Harish Rao was quick to call out the State government’s fiscal claims. During the budget session, Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka had claimed that Telangana’s GST growth stood at 12.3%. However, Rao had earlier predicted a figure closer to 5.5%. “Now it’s official; it’s even lower,” he mentioned to a leading news portal.

Rao held the government accountable for what he described as misplaced priorities and lack of focus on productive investment. He cited ₹12,000 crore in pending Rythu Bharosa payments, and criticized large infrastructure and beautification projects like HYDRAA and the Musi Riverfront redevelopment for diverting funds away from critical rural and industrial needs. The cancellation of Pharma City, once seen as a major industrial hub, was also blamed for weakening investor sentiment.

Calling the current GST performance the worst since the COVID-19 lockdown period, Rao accused the government of ignoring grassroots economic realities. “When people have no money in hand, how will consumption rise? How will GST grow?” he questioned, adding that misleading data in the Assembly also misleads the public.

With key sectors like real estate and hospitality already under pressure, the slowdown in GST growth is being seen as a reflection of wider economic distress. Experts are urging the Telangana government to reprioritise spending, clear pending dues, and re-engage with industrial stakeholders to restore confidence and stimulate growth.

With Telangana’s GST growth falling to just 5.1%—well below the national average—businesses are under pressure to reassess compliance and tax strategies. Vakilsearch offers expert support on GST filing, income tax planning, and financial structuring to help businesses adapt to shifting fiscal conditions. For expert guidance, consult our tax experts today.

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Martina Arokiyaraj

CMS Content Assistant at Vakilsearch

I'm Martina Arokiyaraj A, a CMS Content Assistant at Vakilsearch. I focus on simplifying legal topics into easy-to-understand articles. As a regular contributor to the Vakilsearch news portal, my aim is to keep you informed about the latest in law, compliance, taxation, and more. I make sure you stay updated with Vakilsearch experts' insights on every piece of news, how it impacts you, and the steps you should take.

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