The State government recorded its highest-ever monthly commercial tax collections in July 2026, with the Commercial Taxes Department mobilising ₹7,865 crore through Goods and Services Tax (GST), Value Added Tax (VAT) and Professional Tax, registering a 19% increase over the ₹6,624 crore collected in the corresponding month last year.The July collections were ₹1,241 crore higher than those recorded in July 2025 and surpassed the previous highest monthly collection of ₹7,598 crore achieved in April 2026.In a press release on Saturday, Commissioner of Commercial Taxes M. Raghunandan Rao, attributed the record collections to sustained economic activity, improved tax compliance and the department’s continued focus on enforcement and taxpayer facilitation.GST alone contributed ₹4,452 crore during July 2026, compared to ₹3,638 crore in the same month last year, an increase of ₹814 crore or 22% year-on-year. He noted that the 22% growth in July came on top of the 19% GST growth recorded during the first quarter of the current financial year.The total GST collections from taxpayers registered in Telangana, including Integrated GST (IGST), Central GST (CGST) and State GST (SGST), stood at ₹5,819 crore in July 2026, reflecting a 19% year-on-year growth. According to the department, this was the second-highest growth rate among States, behind Haryana, while the all-India GST collection growth for July stood at 10%.Mr. Rao said the robust revenue performance reflected strong economic momentum, increased investments and expanding business activity, which boosted employment, consumer spending and tax collections. They also attributed the growth to technology-enabled monitoring, data-driven enforcement and action against tax evasion.As part of a special enforcement drive undertaken during July, the department identified taxpayers reportedly involved in generating and passing on fraudulent Input Tax Credit (ITC) without actual supply of goods or services. Using detailed data analytics and time-bound field verification, the department initiated statutory action, including suspension of registrations of 165 taxpayers.The action is expected to prevent the fraudulent passing on of nearly ₹300 crore worth of ineligible input tax credit, he said, adding that they will use data analytics to identify taxpayers who are seeking opportunities to evade, and nudge them to comply. “We will not hesitate to utilise the punitive provisions in the GST Act against taxpayers indulging in deliberate and intentional tax evasion,” he warned. Published - August 01, 2026 07:09 pm IST