Telangana slips to bottom in GST growth

Telangana’s GST collections dropped by -5 per cent in September, the lowest in India. Economists warn of declining demand, while BRS accuses Congress of mishandling the State’s economy under Revanth Reddy.

Hyderabad: The GST collection for September has delivered a grim reminder of Telangana’s worsening financial health. The State recorded a negative growth rate of -5 per cent compared to the corresponding month last year, the lowest in the country. The national average stood at a positive 7 per cent.

Himachal Pradesh, also Congress-ruled, was the only other State in negative territory at -4 per cent.

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The decline is stark when compared to the previous regime. Under the BRS government, Telangana clocked 33 per cent GST growth in September 2023, topping the national charts. In contrast, the Congress government managed just 1 per cent growth in September 2024, before slipping into a -5 per cent crash this year.

Month-wise trends also pointed to a clear downward spiral. Collections grew 12 per cent in April, 6 per cent in May, 8 per cent in June, 10 per cent in July, and 12 per cent in August, before plunging into negative growth in September. Officials insisted the new GST tariff, introduced only in the last week of September, had negligible impact on revenues.

Economists say such contraction in a consumption-heavy State like Telangana is alarming, particularly when all other major States are expanding. It signals weakening business confidence and shrinking consumer demand, they warned.

Reacting to the GST numbers, BRS working president and former Minister KT Rama Rao hit out sharply at the Congress government. He termed the negative growth as another symptom of Telangana’s economic destruction under Chief Minister Revanth Reddy.

“It is a matter of deep shame for Telangana. Just two years ago, we were number one in GST growth; today, we are at the bottom. This sharp decline is proof of how badly the economy is being mishandled under Revanth Reddy,” he said.

He pointed out that during the BRS regime, every sector from agriculture to IT had flourished and set new benchmarks. But under Congress rule, he said, every sector from farming to real estate is collapsing. “Revanth’s regime, marked by chaos, corruption, and inexperience, is leading to the economic destruction of the State,” he remarked.