The Centre has provisionally collected 101.2% of its revised indirect tax target for the FY26, a senior finance ministry official said on Thursday.
The total indirect tax mop-up, encompassing customs duties, union excise duties and the Centre’s share of Goods and Services Tax (GST), marginally exceeded the revised estimate of over Rs 15.53 lakh crore.
The official remarked that the government is well placed to meet the FY26 targets. However, the absolute numbers were not shared.
According to the official, customs duty collections stood at 102% of the revised estimate of Rs 2.58 lakh crore, while union excise duty reached 101% of its revised target of Rs 3.38 lakh crore. Central GST (CGST) mop-up was at 100.8% of the revised target of Rs 9.58 lakh crore.
GST Growth Story
This provisional performance on indirect taxes, driven largely by steady customs and excise inflows along with a late surge in GST, signals resilient compliance and economic activity in the closing months of FY26. The government increased excise duty on tobacco products by multi-folds in February, which, according to officials, also contributed in the steady excise flow. The modest overachievement in CGST comes after the rate rationalisation measures were implemented last September.
A strong performance in March, with gross GST collections crossing Rs 2 lakh crore, marking an 8.8% y-o-y rise and the highest in 10 months, helped lift the full-year gross GST to Rs 22.27 lakh crore, reflecting 8.3% growth. Net GST collections after refunds stood at about Rs 19.34 lakh crore, up 7.1%.
Implementation Hurdles
However, collections from the newly introduced Health and National Security Cess, imposed on pan masala and any other goods as notified, reached only around 63% of the assumed target in the last two months of the last fiscal. The revised estimate had pegged revenue from this cess at Rs 2,330 crore for FY26. Levied over and above the 40% GST rate and calculated on the basis of manufacturing capacity, per machine installed or per unit of manual production, the cess is payable by owners or controllers of the production process. The lower realisation may stem from initial implementation challenges and adjustments by manufacturers.
The official refrained from commenting in detail on the outlook for FY27, stating that it was too early to determine whether the government would stick to the forthcoming Budget targets or rework them in view of the ongoing geopolitical uncertainties that could affect trade flows, commodity prices and overall revenue buoyancy.