Indirect tax collection exceeds FY26 estimates
The government has marginally exceeded its indirect tax collection target for FY26, with revenues from customs, excise and GST surpassing Revised Estimates (RE), an official said on Thursday.
Total indirect tax collections were pegged at over Rs15.52 lakh crore in FY26 RE, including Rs2.58 lakh crore from customs duty, Rs3.38 lakh crore from excise duty, and Rs9.58 lakh crore from Central GST (CGST).
Actual collections outperformed projections across categories. Customs duty collections reached 102 per cent of RE, while excise duty stood at 101 per cent. CGST collections came in at 100.8 per cent of RE.
“Overall, GST plus non-GST collections came in at 101.2 per cent of RE,” the official said, indicating steady tax buoyancy despite global uncertainties.
However, receipts from the health and national security cess fell short of expectations. Against an RE target of Rs2,330 crore for FY26, actual collections reached only 63 per cent. The cess, imposed on pan masala manufacturing units based on capacity, came into effect from February 1, 2026, and is levied over and above the highest GST slab of 40 per cent.
Officials expect collections from the cess to improve in the current fiscal as implementation stabilises. For FY27, the government has budgeted Rs14,000 crore from the levy, signalling confidence in higher compliance and enforcement.
