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Informist, Thursday, Jul. 31, 2025

 

--Govt Apr-Jun gross tax revenue INR 8.690 tln vs INR 8.308 tln year ago 

--Govt: Apr-Jun state tax devolution INR 3.269 tln vs INR 2.795 tln year ago 

--Govt Jun gross tax revenue INR 3.538 tln vs INR 3.712 tln year ago 

 

NEW DELHI – The government's gross tax mop-up in the first three months of the financial year 2025-26 (Apr-Mar) was up just 4.6% year on year at INR 8.690 trillion with income tax continuing to be the top contributor to the Centre's coffers, data released Thursday by the Controller General of Accounts showed. The exuberance in tax collections, especially in direct taxes, seen over the last two years is likely fading, with June's tax mop-up falling 4.7% on year to INR 3.538 trillion.

 

Irrespective of being the top contributor, income tax collections fell 12.2% on year in June to INR 940.13 billion, taking the total for Apr-Jun to INR 2.858 trillion, or 0.5% lower over last year. Corporate tax collections, as well, fell 1.3% in June to INR 1.278 trillion, taking the total collection under this head for Apr-Jun to INR 1.727 trillion, 1.2% lower on year.

 

On a month-on-month basis, income tax collections were up 14.4% in June, while corporate tax collection rose over fivefold compared to May. The sharply higher collections in June were owing to advanced taxes which are paid in instalments 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 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%.

Albeit muted, the growth in tax collections during the first three months was aided by 1.5% rise in Central Goods and Services Tax collections, which totalled INR 2.317 trillion in Apr-Jun. Integrated GST also aided the growth with a collection of INR 273.12 billion in Apr-Jun as against a negative balance of INR 101.76 billion in the corresponding period last year. 

 

The government's net tax collections during the first three months were down 1.7% to INR 5.403 trillion with June's net tax falling 17.8% on year to INR 1.895 trillion. The fall in net taxes was also down owing to 17% rise in Centre's devolution to states in the corresponding period. The government transferred INR 3.269 trillion to states in Apr-Jun. The total transfer to states so far translates to 23% of the full year's aim of INR 14.224 trillion. The Budget has projected India's net tax collections at INR 28.374 trillion in FY26.

 

On the indirect tax front, customs and excise duty showed divergent performance with collections growing for the former and falling for the latter during Apr-Jun, 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-Jun and Jun are as follows (in billion INR):

 

	Apr-Jun 2025	Apr-Jun 2024	Year on year % change
Corporation Tax	1,727.49	1,747.74	(-)1.2
Income Tax	2,858.29	2,873.36	(-)0.5
Securities Transaction Tax	130.15	116.06	12.1
Other Receipts	0.04	0.01	300.0
Central GST	2,317.23	2,283.28	1.5
Union territory GST	7.79	8.77	(-)11.2
Integrated GST	273.12	-101.76	--
GST compensation cess	383.25	377.68	1.5
Customs	424.14	470.65	(-)9.9
Excise duty	556.05	513.57	8.3
Service Tax	-1.52	-0.38	--
Other taxes	14.06	18.99	(-)26.0
Total	8,690.09	8,307.97	4.6

 

	Jun-25	May-25	Jun-24	Year-on-year % change
Corporation Tax	1,277.88	235	1,294.61	(-)1.3
Income Tax	940.13	821.9	1,070.45	(-)12.2
Securities Transaction Tax	49.29	43	43.71	12.8
Other Receipts	0	0.02	0	0.0
Central GST	767.39	767.44	694.87	10.4
Union territory GST	2.88	3.72	2.79	3.2
Integrated GST	(-)61.18	23.33	7.07	--
GST compensation cess	133.19	123.1	129.4	2.9
Customs	131.6	153.2	189.75	(-)30.6
Excise duty	292.06	264.38	270.4	8.0
Service Tax	0.16	-1.29	0.49	--
Other taxes	4.38	3.73	8.14	(-)46.2
Total	3,537.78	2,437.53	3,711.68	(-)4.7

 

End

 

Reported by Priyasmita Dutta

Edited by Deepshikha Bhardwaj

 

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