Hyderabad: Telangana’s own tax collections have registered a 22% growth in Oct, with goods and services tax (GST) and value-added tax (VAT) revenues rising sharply, even as the state faces concerns over the economic fallout of El Niño and rainfall deficit.The state collected Rs 7,735 crore through GST, VAT and the profession tax in Oct, compared with Rs 6,332 crore in Oct 2025, an increase of Rs 1,403 crore. VAT collections recorded the highest growth of 31%, rising to Rs 3,065 crore from Rs 2,342 crore, an increase of Rs 723 crore. GST revenue grew 17% to Rs 4,590 crore from Rs 3,914 crore, adding Rs 676 crore. Profession tax collections increased 5% to Rs 80 crore from Rs 76 crore, a rise of Rs 4 crore.Sources said the festive season might have contributed to stronger collections, as spending on goods and services generally picks up during this period. However, the extent of this boost cannot be established from tax figures alone.Cumulative performance during the first seven months of 2026-27 also remained strong. Collections under the three tax heads rose 17% to Rs 52,110 crore during April-Oct 2026, from Rs 44,598 crore in the corresponding period last year, an increase of Rs 7,512 crore.GST collections increased 19% to Rs 29,627 crore from Rs 24,974 crore, adding Rs 4,653 crore. VAT revenue grew 15% to Rs 21,893 crore from Rs 19,049 crore, an increase of Rs 2,844 crore. Profession tax collections rose 3% to Rs 590 crore from Rs 575 crore, adding Rs 15 crore.Robust collections come against the backdrop of an expert committee warning that El Niño-related rainfall deficiency could affect farm output, rural incomes, consumption and tax revenues. The committee estimated that Telangana’s GSDP growth, projected at 10% to 10.7% for the current financial year, could be lower by 1.5 to 2 percentage points. It also warned that weaker rural demand could put pressure on the state’s GST collections.Oct numbers offer a snapshot of current revenue buoyancy but might not fully reflect the impact of the monsoon shortfall. The effect on consumption and business activity could become clearer in the coming months as lower farm incomes feed through the wider economy.
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