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Informist, Friday, Jan. 30, 2026

 

--Govt Apr-Dec gross tax revenue INR 29.843 tln vs INR 27.504 tln year ago 

--Govt: Apr-Dec state tax devolution INR 10.382 tln vs INR 9.012 tln year ago 

--Govt Dec gross tax revenue INR 6.478 tln vs INR 4.895 tln year ago 

 

NEW DELHI – The government's gross tax collections surged 32.4% on year to INR 6.478 trillion in December, as integrated goods and services tax collections shot up after staying in negative for seven consecutive months. Corporate tax collections also contributed to the sharp rise in overall collections in December, data released Friday by the Controller General of Accounts showed. Interestingly, after tepid collections throughout the year, customs duty mop-up also jumped during December, data showed. 

 

The government's total tax collections in the first 10 months of 2025-26 (Apr-Mar) rose 8.5% on year to INR 29.843 trillion. 

 

Gross tax collections nearly tripled month-on-month in December. IGST collections surged to INR 761.61 billion in December from a negative INR 37.36 billion in December last year. During Apr-Dec, IGST totalled INR 156.41 billion, against a negative INR 315.90 billion in the corresponding period last year.

 

IGST, which applies on inter-state supply of goods, is shared between the Centre and the states. The government ran a negative IGST balance during Apr-Nov, possibly due to higher settlements to the states or the Centre. The huge collection under it in December could also be due to the lack of IGST settlement during the month. To be sure, IGST collections were not unusually high in December, as per data from the GST Portal.

 

Corporate tax collections also contributed to the buoyancy in December, growing 22.7% on year to INR 2.813 trillion. The government's total corporate tax collections in the first 10 months of the year totalled INR 8.328 trillion, up 12.4% on year. The pace of growth in corporate tax collections during Apr-Dec is higher than the 9.6% on-year growth assumed in the Budget for FY26. On a monthly basis, December corporate tax collections were over seven times November's figure, driven by advance taxes. The government collects advance taxes in four tranches during the year in June, September, December, and March. 

 

The Budget has projected total tax collections for FY26 at INR 42.702 trillion, up 10.8% from the revised estimate for last year. Data for FY25 showed the government had missed the revised aim by INR 582 billion. This means that for the government to meet its target this year, collections will have to grow 12.5%. 

 

While corporate tax collections improved significantly, income tax collections remain lacklustre. Income tax collections in Apr-Dec were INR 8.727 trillion, up 4.2% on year. In December, the collections were INR 1.244 trillion, down 9.2% on year. The Budget projected income tax collections at INR 14.38 trillion in FY26. 

 

Central goods and services tax collection in Apr-Dec rose 5.5% to INR 7.106 trillion. In December, central GST collections grew 6.9% on year to INR 741.42 billion. December was the second full month after the GST rate changes announced in September played out. On a month-on-month basis, CGST collections in December fell 10.5%.  

 

The GST Council had, in September, overhauled the indirect tax regime by collapsing the four-slab GST structure of 5%, 12%, 18%, and 28% to a two-slab structure of 5% and 18%. The council also introduced a new GST rate of 40% on sin and luxury goods. All new rates, except those for tobacco products, took effect on Sept. 22.

 

As part of the rate changes, the GST Council also removed compensation cess on all products from Sept. 22, barring tobacco-related products. The cess was introduced to bring states on board to adopt the GST regime. Initially set to expire in June 2022, the cess was extended until March 2026 to repay INR 2.69 trillion in loans taken by the Centre to partly bridge the revenue shortfall of states during the COVID-19 pandemic. These loans are expected to be repaid soon, meaning tobacco and related products will no longer attract them. 

 

Because of the change, GST compensation cess collection dipped 19.5% on year during Apr-Dec to INR 897.77 billion. In December, it tumbled 55.1% on year to INR 53.73 billion.

 

The government's net tax collections during the first 10 months rose 5.2% to INR 19.393 trillion, with December's net tax rising 36.5% on year to INR 5.453 trillion. The rise in net taxes was despite a 15.2% increase in the Centre's devolution to states during the period. The government transferred INR 10.382 trillion to states in Apr-Dec. The total transfer to states so far amounts to nearly 73% of the full-year target of INR 14.224 trillion. The Budget has projected India's net tax collections for FY26 at INR 28.374 trillion.

 

On the indirect tax front, customs and excise duty collections performed well in Apr-Dec. The Budget has projected central GST collections to grow by 11.3% in FY26, and customs and excise duties to grow by 2.1% and 3.9%, respectively. To meet the Budget projections, central GST, customs, and excise duty collections will need to grow 11.2%, 3.1%, and 5.8%, respectively. As per current data, customs duty collections are up 15% on year in Apr-Dec, while excise duty collections are up 9.9% on year.

 

The details for the central government's tax collections for Apr-Dec and Dec are as follows (in billion INR):

	Apr-Dec 2025	Apr-Dec 2024	Year on year % change
Corporation Tax	8,327.66	7,409.26	12.4
Income Tax	8,726.96	8,378.17	4.2
Securities Transaction Tax	402.2	401.36	0.2
Other Receipts	0.09	0.06	50.0
Central GST	7,106.15	6,732.56	5.5
Union territory GST	46.98	26.96	74.3
Integrated GST	156.41	(-)315.9	--
GST compensation cess	897.77	1,115.56	(-)19.5
Customs	1,957.19	1,701.75	15.0
Excise duty	2,194.1	1,996.3	9.9
Service Tax	(-)11.86	0.36	--
Other taxes	39.02	57.84	(-)32.5
Total	29,842.67	27,504.28	8.5

 

	Dec-25	Nov-25	Dec-24	Year-on-year % change
Corporation Tax	2,812.98	383.31	2,292.9	22.7
Income Tax	1,243.97	786.68	1,370.42	(-)9.2
Securities Transaction Tax	45.02	47.83	42.04	7.1
Other Receipts	0.01	0	0.01	0.0
Central GST	741.42	828.66	693.83	6.9
Union territory GST	4.63	16.97	2.69	72.1
Integrated GST	761.61	(-)307.14	(-)37.36	--
GST compensation cess	53.73	39.01	119.58	(-)55.1
Customs	528.55	140.43	160.33	229.7
Excise duty	281.13	280.91	245.3	14.6
Service Tax	(-)0.29	(-)0.2	(-)0.6	--
Other taxes	5.61	3.94	5.39	4.1
Total	6,478.37	2,220.4	4,894.53	32.4

 

End

 

Reported by Priyasmita Dutta

Edited by Saji George Titus

 

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