Hyderabad: Hyderabad’s western corridor is not just the city’s corporate hub. It is also the engine room of Telangana’s tax revenues, as GST data for 2026 shows.Just 400 large GST taxpayers, mostly clustered in Hyderabad’s affluent western corridor, contributed over 40% of the state’s GST collections during the first five months of 2026-27, underlining the region’s role in Telangana’s economy.Of the nearly five lakh GST taxpayers registered in Telangana, 400 large taxpayers accounted for 40.4% of the state’s GST collections during April-Aug 2026. Together, they contributed Rs 8,425 crore out of the total GST collections of Rs 20,862 crore during the five-month period.Around 380 of these 400 taxpayers are based in Hyderabad, with a significant concentration in the city’s western corridor. Only 20 are located outside the capital.Businesses are brought under the state large taxpayer unit (LTU) if they pay GST of Rs 15 crore or more a month or avail input tax credit of Rs 30 crore or more. These taxpayers are monitored by a dedicated LTU wing of the commercial taxes department headed by commissioner M Raghunandan Rao.The biggest contributors among LTU taxpayers pay anywhere between Rs 150 crore and Rs 200 crore in GST every month, making them key drivers of the state’s revenue collections.LTU taxpayers span a wide range of sectors, including banking, cement, pharmaceuticals, software, electronics, iron and steel, gold and jewellery, real estate, passenger transport, works contracts and automobiles.Collections from LTU taxpayers rose 14% to Rs 8,425 crore during April-Aug 2026 from Rs 7,400 crore in the corresponding period last year. Overall GST collections in Telangana grew at a faster pace of 19.8%, rising from Rs 17,414 crore to Rs 20,862 crore.The trend continued in Aug. LTU taxpayers contributed Rs 1,733 crore, up from Rs 1,550 crore in Aug 2025. Telangana’s GST collections increased from Rs 3,641 crore to Rs 4,341 crore during the same period, a rise of Rs 700 crore or 19.22%.SCCL big contributorWhile Hyderabad dominates the LTU landscape, a small number of major taxpayers operate outside the city. Singareni Collieries is among the prominent contributors in this category.Commercial taxes officials said LTU-covered entities also drive VAT revenues, accounting for more than 95% of VAT collections both in Aug and during the April-Aug period.Much of this VAT revenue comes from oil companies and the Telangana Beverages Corporation Limited, both of which fall under the LTU framework.Telangana’s VAT collections rose from Rs 2,712 crore in Aug 2025 to Rs 3,193 crore in Aug 2026, an increase of Rs 481 crore or 17.73%. During April-Aug, VAT collections climbed from Rs 14,063 crore to Rs 15,774 crore, registering growth of 12.16%.Strong growth in both GST and VAT helped push overall commercial taxes collections from Rs 6,431 crore in Aug 2025 to Rs 7,610 crore in Aug 2026, a jump of Rs 1,179 crore or 18.33%.For the April-Aug period, combined GST and VAT collections increased from Rs 31,898 crore to Rs 37,036 crore, reflecting an additional Rs 5,138 crore and a growth rate of 16.10%.
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