More Stories

Informist, Friday, Nov. 29, 2024

 

--Govt Apr-Oct gross tax revenue INR 20.326 tln vs INR 18.345 tln year ago 

--Govt: Apr-Oct tax devolution to states INR 7.23 tln vs INR 5.28 tln yr ago 

--Govt Oct gross tax revenue INR 2.188 tln vs INR 2.152 tln year ago 

 

NEW DELHI – The central government's tax collections in the first seven months of 2024-25 (Apr-Mar) rose 10.8% on year at INR 20.326 trillion on the back of a 20.2% increase in income tax collections, data released Friday by the Controller General of Accounts showed. However, corporate tax collections rose a paltry 1.2% on year in Apr-Oct.

 

As per the latest data, income tax and corporate tax collections in Apr-Oct were INR 6.265 trillion and INR 4.879 trillion, respectively. October, however, was a particularly bad month for direct tax mop-up, with income tax collections falling 11% on year to INR 619.37 billion and corporate tax collections declining 14.1% to INR 263.56 billion. 

 

The Union Budget for FY25 has projected gross tax revenue at INR 38.402 trillion, up 10.8% from a year ago. The budgeted growth in income tax and corporate tax collections is 17.4% and 12.0%, respectively. Despite the mixed performance, Central Board of Direct Taxes Chairman Ravi Agrawal said earlier this month that the government is hopeful of exceeding the direct tax collection target in FY25.  

Meanwhile, overall tax collection in October was the lowest in five months.

 

The Centre's net tax collections in Apr-Oct were INR 13.050 trillion, up 0.2% on year, and in October it was a whopping 71.9% lower on year at INR 398.14 billion. The Budget has projected a growth of 11.0% in net tax revenue to the Centre.

 

The sharp fall in net tax collections in October is due to higher devolution to states in October. Tax devolution to states in Apr-Oct was INR 7.230 trillion, up 36.8% on year. States are budgeted to get INR 12.472 from the central government this year. With a double instalment in October, the total amount transferred to states was 58.0% of the full-year amount. The Centre must transfer INR 1.048 trillion on average in each of the final five months of FY25 to meet the Budget estimate.

 

The government releases tax devolution to states in 14 equal instalments every year. 

 

On the indirect tax side, the picture continues to be mixed, except for Central Goods and Services Tax collections, which grew broadly as projected in the Budget for FY25. In Apr-Oct, Central GST rose 11.3% on year against the budgeted growth of 11.0%. Customs duty collections during Apr-Oct, on the other hand, did better than the Budget growth projection of 2% by growing at 6.2%. Excise duty mop-up, however, was up only 0.6% in Apr-Oct compared to the target of 4.5% for the whole year. 

 

In October, the central GST mop-up was 14% higher and customs were 5.2% higher on year. On the other hand, excise collections were lower by 10.7%, the data showed.

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

 

	Oct-24	Sep-24	Oct-23	Year-on-year % change
Corporation Tax	263.56	2368.67	306.86	(-)14.1
Income Tax	619.37	1,122.31	695.83	(-)11.0
Central GST	803.79	699.98	705.1	14.0
Union territory GST	3.23	3.38	11.22	(-)71.2
Integrated GST	(-)96.02	16	-158.88	--
GST compensation cess	121.59	118.61	118.98	2.2
Customs	191.53	186.3	182	5.2
Excise duty	227.24	244.6	254.57	(-)10.7
Service Tax	(-)0.07	0.62	-0.43	--
Other taxes	53.7	50.73	37.22	44.3
Total	2,187.92	3,688.89	2,152.47	1.6

 

 

	Apr-Oct 2024	Apr-Oct 2023	Year on year % change
Corporation Tax	4,878.62	4,819.69	1.2
Income Tax	6,264.54	5,212.11	20.2
Central GST	5,215.99	4,685.74	11.3
Union territory GST	19.47	27.91	(-)30.2
Integrated GST	(-)104.48	(-)170.96	--
GST compensation cess	864.82	810.29	6.7
Customs	1,321.12	1,243.84	6.2
Excise duty	1,511.9	1,502.15	0.6
Service Tax	0.87	4.33	(-)79.9
Other taxes	353.49	210.08	68.3
Total	20,326.34	18,345.18	10.8

 

End

 

Reported by Priyasmita Dutta

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.