Hyderabad is facing financial challenges as Telangana struggles with declining revenue despite efforts to boost it. A key issue is the drop in GST collections in September.
Across India, Telangana was notably the only state with a significant decrease in GST revenue last month. The revenue in September was Rs 4,998 crore, a decline from Rs 5,267 crore during the same period last year, marking a 5% decrease. Other states like Himachal Pradesh saw a 4% drop, while Manipur and Delhi experienced a 1% decline.
Telangana officials are working on strategies to improve the situation. They are intensifying inspections to tackle tax evasion by traders. The state’s Commercial Taxes Department is closely monitoring each circle’s performance, particularly at the Assistant Commercial Tax Officer level, to better understand GST revenue patterns. Some traders avoided paying GST in September due to a nationwide GST rate change effective from September 22. Authorities are now examining invoices, and defaulters will soon receive notices.
Trading activities in parts of Hyderabad and Telangana have slowed for various reasons. A comprehensive report on GST collections and the rate changes is underway. October’s GST impact will likely reflect increased business during the Dasara festival in Hyderabad. Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka plans to meet with Commercial Taxes officials next week to discuss GST revenue expectations for the next two quarters.
