‘Comply with tax regulations’: CM Revanth calls for strong measures against GST evasion
He also directed the establishment of a call center to address doubts and queries of taxpayers, suggesting the integration of Artificial Intelligence (AI)
By Newsmeter Network
Hyderabad: CM Revanth Reddy asked officials to check on GST evasion; ensure businesses comply with tax regulations
Hyderabad: Chief Minister A. Revanth Reddy has asked officials to curb Goods and Services Tax (GST) evasion and ensure that all eligible businesses comply with tax regulations.
The Chief Minister issued these directives during a comprehensive review meeting of the Commercial Tax Department held on Tuesday night.
During the meeting, CM Revanth Reddy emphasized the importance of ensuring that all entities under the ambit of GST pay their taxes diligently. He also directed the establishment of a call center to address doubts and queries of taxpayers, suggesting the integration of Artificial Intelligence (AI) for its efficient operation.
The Chief Minister further advised officials to study the tax policies, including GST, implemented by neighboring states and adopt best practices to enhance the state's revenue collection and streamline processes. He also stressed the need for providing better services to taxpayers at all departmental offices.
Background of GST collection in TG
Telangana has consistently demonstrated strong growth in GST collections since the implementation of the tax regime in 2017.
General Trends and Key Points:
Consistent Growth (Pre-2024-25): Before the current fiscal year (FY 2024-25), Telangana had been praised for its robust GST collection performance. For instance, reports from late 2023 indicated that GST collections in Telangana had doubled in five years, with a significant increase from ₹11,639 crore (till August 2019-2020) to ₹24,052 crore (till August 2023-2024).
Strong Economic Health: The consistent growth in GST collections was often cited as an indicator of the state's sound economic health and effective financial planning by the previous government.
No GST Compensation: Notably, Telangana often did not receive GST compensation from the Centre due to its consistently high revenue growth, indicating that its revenue generation was strong enough to meet its financial needs.
Recent Challenges (FY 2024-25 - Q1): The most recent CAG report for the first quarter of FY 2024-25 (April-June 2025) indicates a more strained financial position. While overall tax revenue for the quarter was ₹35,721 crore (20.4% of the annual target), GST collections specifically were ₹12,622 crore (out of a projected ₹59,074 crore for the full year). This suggests that while collections are ongoing, there might be challenges in meeting the aggressive annual targets, leading to a revenue deficit.
