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Informist, Tuesday, Jun. 30, 2026

 

--Govt May gross tax revenue INR 2.582 tln vs INR 2.438 tln year ago 

--Govt Apr-May gross tax revenue INR 5.246 tln vs INR 5.152 tln year ago 

--Govt: Apr-May state tax devolution INR 1.756 tln vs INR 1.635 tln yr ago 

 

NEW DELHI – The central government's tax collections in Apr-May rose just 1.8% on year to INR 5.246 trillion, mainly due to a sharp fall in the integrated goods and services tax and compensation cess mop-up, data released by the Controller General of Accounts on Tuesday showed. Tax collections in May, however, showed a recovery from April and grew 5.9% year-on-year to INR 2.582 trillion. 

 

The tax collection in Apr-May accounted for nearly 12% of the Budget target of INR 44.041 trillion for the current financial year. In the first two months of 2026-27 (Apr-Mar), the central government had an outflow of INR 33 billion under the integrated GST, compared with an inflow of INR 334 billion a year ago. The government collected a little under INR 2 billion in GST compensation cess, down from INR 250 billion a year ago, reflecting the discontinuation of the compensation cess from Feb. 1. These two items pulled down the government's overall tax collection for the first two months.

 

Income tax collections continued to be the top contributor to the Centre's coffers, growing 6.8% in May to INR 878 billion, bringing the total for Apr-May to INR 2.049 trillion, up 6.8% from last year. On the other hand, corporate tax collections in May were to the tune of INR 315 billion, up 34% from INR 235 billion collected a year ago, taking the total collection under the head in Apr-May to INR 567 billion, up 26.1% on year.

 

Net tax collections in May rose 5.2% on year to INR 1.696 trillion. The Budget has projected India's net tax collections at INR 28.669 trillion and has collected 12% of that amount in the first two months of the fiscal year, at INR 3.481 trillion. The government's devolution to states in Apr-May rose 7.4% on year to INR 1.756 trillion. 

 

On the indirect tax side, central GST revenue remained steady, while customs and excise duty collections showed divergent trends, primarily due to the change in duty rates. The government's customs duty collections grew 37.5% in the first two months, while excise duty collections fell 19.7%. 

 

The Budget has projected total tax collections for FY26 at INR 44.041 trillion, up 8% from last year's revised estimate. The government had missed the revised target for 2025-26 by INR 534 billion. 

 

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

	Apr-May 2026	Apr-May 2025	Year-on-year % change
Corporation Tax	566.81	449.61	26.1
Income Tax	2,049.02	1,918.16	6.8
Securities Transaction Tax	115.36	80.86	42.7
Other Receipts	(-)0.04	0.04	--
Central GST	1,903.36	1,549.84	22.8
Union territory GST	6.33	4.91	28.9
Integrated GST	(-)33.14	334.3	--
GST compensation cess	1.86	250.06	-99.3
Customs	402.2	292.54	37.5
Excise duty	211.98	263.99	-19.7
Service Tax	(-)1.7	(-)1.68	--
Other taxes	23.79	9.68	145.8
Total	5,245.83	5,152.31	1.8

 

	May-26	Apr-26	May-25	Year-on-year % change
Corporation Tax	314.87	251.94	235	34.0
Income Tax	877.95	1,171.07	821.9	6.8
Securities Transaction Tax	74.31	41.05	43	72.8
Other Receipts	(-)0.02	(-)0.02	0.02	--
Central GST	825.89	1,077.47	767.44	7.6
Union territory GST	1.95	4.38	3.72	(-)47.6
Integrated GST	35.27	(-)68.41	23.33	51.2
GST compensation cess	3.73	(-)1.87	123.1	(-)97.0
Customs	227.96	174.24	153.2	48.8
Excise duty	207.51	4.47	264.38	(-)21.5
Service Tax	(-)0.86	(-)0.84	(-)1.29	--
Other taxes	13.88	9.91	3.73	272.1
Total	2,582.44	2,663.39	2,437.53	5.9

 

Source: Controller General of Accounts

 

End

 

Reported by Priyasmita Dutta

Edited by Saji George Titus

 

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