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Informist, Monday, Jun. 30, 2025

--Govt Apr-May gross tax revenue INR 5.152 tln vs INR 4.596 tln year ago 

--Govt: Apr-May state tax devolution INR 1.635 tln vs INR 1.398 tln year ago 

--Govt May gross tax revenue INR 2.438 tln vs INR 2.046 tln year ago 

NEW DELHI – The government's gross tax mop-up in the first two months of the financial year 2025-26 (Apr-Mar) was up 12.1% year on year at INR 5.152 trillion as income tax collections continued to be the top contributor to the Centre's coffers, data released Monday by the Controller General of Accounts showed.

In May, however, income tax collections grew just 1% to INR 821.90 billion, taking the total for Apr-May to INR 1.918 trillion, or 6.4% higher over last year. On other hand, corporate tax collections in May was to the tune of INR 235 billion, nearly triple of INR 91.24 billion collected in May last year, taking the total collection under this head for Apr-May to INR 449.61 billion, slightly lower on year by 0.8%.

The sharply higher corporate tax collections during May, coupled with a 13.4% rise in Central goods and services tax collections pushed May's tax collection 19.1% higher on year to INR 2.438 trillion. Central GST collections grew 13.4% on year to INR 767.44 billion in May.

On a month-on-month basis, income tax collections were sharply down by 25% in May, while corporate tax collection rose a steady 9.5%.

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

Tax collections in May were robust despite the government's devolution to states during the month rising 17% on year. In Apr-May, the Centre transferred INR 1.635 trillion to states, translating to 11.5% of the full year's aim of INR 14.22 trillion. Net tax collections in May was INR 1.612 trillion, up 10%. The Budget has projected India's net tax collections at INR 28.374 trillion.

On the indirect tax front, collection from Central GST fell 2.4% on year to INR 1.550 trillion in Apr-May. Customs and excise duty collections also fell during the period, data showed. The Budget has projected India's central GST collections to grow 11.3% in FY26, customs and excise to grow 2.1% and 3.9%, respectively. Based on FY25 data, in order to meet the government's projections, central GST and customs and excise collections will have to grow 11.2%, 3.1% and 5.8%, respectively.

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

End

Reported by Priyasmita Dutta

Edited by Ashish Shirke

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