New Delhi:
The Government of India has slightly exceeded its indirect tax collection targets for fiscal year 2025-26, according to an official statement. The total indirect tax collection, encompassing customs, excise, and GST, was pegged at over Rs 15.52 lakh crore as per Revised Estimates (RE). Customs duty contributed Rs 2.58 lakh crore, excise duty Rs 3.38 lakh crore, and Central Goods and Services Tax (CGST) Rs 9.58 lakh crore.
Revenues from customs duty came in at 102% of RE, while excise duty collection reached 101% of RE. The CGST collection stood at 100.8% of RE, resulting in an overall GST plus non-GST revenue of 101.2% of the RE. This performance indicates modest but steady growth in indirect tax receipts, reflecting the resilience of consumption-driven revenue streams.
However, collections from the Health and National Security Cess, imposed on pan masala manufacturing, fell short of expectations. While the RE had anticipated Rs 2,330 crore, actual collections reached only 63% of this target. The cess, effective from February 1, 2026, is levied over and above the highest 40% GST rate on pan masala units.
Officials expect cess revenues to improve in the current fiscal year as the levy becomes more established. For FY27, the government has budgeted Rs 14,000 crore from the Health and National Security Cess. Overall, while indirect tax performance has slightly surpassed targets, targeted cesses such as the health levy remain an area for further growth, highlighting the importance of structured implementation and compliance monitoring for new tax measures.
