More Stories

Informist, Friday, Aug. 29, 2025

 

--Govt Jul gross tax revenue INR 2.239 tln vs INR 2.534 tln year ago 
--Govt: Apr-Jul state tax devolution INR 4.285 tln vs INR 3.666 tln year ago 
--Govt Apr-Jul gross tax revenue INR 10.929 tln vs INR 10.842 tln year ago

 

NEW DELHI – The government's gross tax mop-up in the first four months of the financial year 2025-26 (Apr-Mar) was up 0.8% year on year at INR 10.929 trillion with income tax continuing to be the top contributor to the Centre's coffers, data released Friday by the Controller General of Accounts showed. The robust growth in tax collections, especially in direct taxes, seen over the last two years is fading, with July's tax mop-up falling 11.7% on year to INR 2.239 trillion.

 

Despite being the top contributor, income tax collections fell 35.2% on year in July to INR 694.86 billion, taking the total for Apr-Jul to INR 3.553 trillion, or 10% lower over last year. Corporate tax collections, however, more than doubled in July to INR 258.4 billion, taking the total collection under this head for Apr-Jul to INR 1.986 trillion, 7.6% higher on year.

 

On a month-on-month basis, income tax collections were down 26.1% in July while corporate tax collection fell 80% compared with June. "A contraction in the personal income tax collections in July 2025, owing to the extension of the deadline to file taxes and an adverse base, pulled down the performance of gross tax revenues in the month, even as devolution to states maintained a robust pace, further compressing the performance of net tax revenues."  said Aditi Nayar, chief economist, ICRA Ltd.

 

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 four months was aided by 3.7% rise in Central goods and services tax collections, which totalled INR 3.116 trillion in Apr-Jul. Integrated GST also aided the growth with a collection of INR 119.07 billion in Apr-Jul as against a negative balance of INR 106.59 billion in the corresponding period last year. 

 

The government's net tax collections during the first four months were down 7.5% to INR 6.618 trillion with July's net tax falling 26.6% on year to INR 1.215 trillion. The fall in net taxes was also down owing to a 17% rise in the Centre's devolution to states in the corresponding period. The government transferred INR 4.285 trillion to states in Apr-Jul. The total transfer to states so far translates to over 30% 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 falling for the former and growing for the latter during Apr-Jul, 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-Jul and Jul are as follows (in billion INR):

 

	Apr-Jul 2025	Apr-Jul 2024	Year on year % change
Corporation Tax	1,985.89	1,845.74	7.6
Income Tax	3,553.15	3,944.88	(-)9.9
Securities Transaction Tax	178.82	166.35	7.5
Other Receipts	0.05	0.04	25.0
Central GST	3,116.25	3,006.16	3.7
Union territory GST	11.15	9.34	19.4
Integrated GST	119.07	-106.59	0
GST compensation cess	503.05	505.47	-0.5
Customs	605.3	675.22	(-)10.4
Excise duty	839.63	768.12	9.3
Service Tax	-1.68	0.13	--
Other taxes	18.42	27.43	(-)32.8
Total	10,929.1	10,842.29	0.8

 

 

	Jul-25	Jun-25	Jul-24	Year-on-year % change
Corporation Tax	258.4	1,277.88	98	163.7
Income Tax	694.86	940.13	1071.52	(-)35.2
Securities Transaction Tax	48.67	49.29	50.29	(-)3.2
Other Receipts	0.01	0	0.03	0
Central GST	799.02	767.39	722.88	10.5
Union territory GST	3.36	2.88	0.57	489.5
Integrated GST	-154.05	-61.18	-4.83	0
GST compensation cess	119.8	133.19	127.79	(-)6.3
Customs	181.16	131.6	204.57	(-)11.4
Excise duty	283.58	292.06	254.55	11.4
Service Tax	-0.16	0.16	0.51	0
Other taxes	4.36	4.38	8.44	(-)48.3
Total	2239.01	3537.78	2534.32	(-)11.7

 

End

 

Reported by Sagar Sen

Edited by Akul Nishant Akhoury

 

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. 2025. All rights reserved.