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Informist, Friday, Nov. 28, 2025

 

--Govt Oct gross tax revenue INR 2.490 tln vs INR 2.188 tln year ago

--Govt Apr-Oct gross tax revenue INR 21.144 tln vs INR 20.326 tln year ago

--Govt: Apr-Oct state tax devolution INR 8.350 tln vs INR 7.230 tln year ago

 

NEW DELHI – The government's gross tax collections in Apr-Oct rose 4% year-on-year to INR 21.144 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 consistently robust growth in tax collections, especially in direct taxes, seen over the past two years, is fading. However, the data for October constitute a positive surprise, with corporation tax soaring 76.4% on year and income tax collections jumping 26.9% on year.

 

Month on month, the gross tax collections more than halved, primarily on account of extension of the last date for filing income tax returns this year. The government had extended the deadline to file returns to Sept. 15 from Jul. 31 last year.

 

The income tax collection rose 6.9% on year in Apr-Oct to INR 6.696 trillion, with October's collection at INR 786.17 billion. Month on month, the income tax collection in October was down 48%.

 

The corporation tax collection in October was stellar at INR 465.03 billion, bringing the total collection in the first seven months of the financial year 2025-26 (Apr-Mar) to INR 5.131 trillion, up 5.2% on year. Month on month, the corporation tax collection tumbled 80.4%.

 

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

 

The growth in tax collections during the first seven months of FY26, albeit muted, was aided by a 6.1% rise in central goods and services tax collections to INR 5.536 trillion. In October, central GST collections grew 8.1% on year to INR 868.71 billion. October was the first full month after the GST rate changes announced in September played out.

 

The GST Council had in September overhauled the indirect tax regime by collapsing the four-slab GST structure of 5%, 12%, 18%, and 28% to a two-slab structure of 5% and 18%. The council also introduced a new GST rate of 40% on sin and luxury goods. All new rates, except for those on tobacco products, took effect from Sept. 22. The GST Council anchored the tax changes and the overall implication of the move based on FY24 consumption data, which is the last available full year bifurcated data on item-wise GST spent by consumers. 

 

The government's net tax collections during the first seven months were down 2.4% at INR 12.743 trillion, with October's net tax rising 12.9% on year to INR 449.31 billion. The fall in net taxes was also owing to a 15.5% rise in the Centre's devolution to states during the period. The government transferred INR 8.350 trillion to states in Apr-Oct. The total transfer to states so far translates to nearly 59% of the full year's aim of INR 14.224 trillion. The Budget has projected India's net tax collections for FY26 at INR 28.374 trillion.

 

On the indirect tax front, customs and excise duty showed divergent performance with the collection of the former falling and that of the latter rising in Apr-Oct. The Budget has projected India's central GST collections to grow 11.3% in FY26, customs and excise duty to grow 2.1% and 3.9%, respectively. Based on the actual data for FY25, to meet the government's projections, central GST, customs, and excise duty collections will need to grow 11.2%, 3.1%, and 5.8%, respectively. As per current data, customs duty collections are down 2.5% on year in Apr-Oct while excise duty collections are up 7.9% on year.

 

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

 

	Apr-Oct 2025	Apr-Oct 2024	Year on year % change
Corporation Tax	5,131.37	4,878.62	5.2
Income Tax	6,696.31	6,264.54	6.9
Securities Transaction Tax	309.35	306.87	0.8
Other Receipts	0.08	0.05	60.0
Central GST	5,536.07	5,215.99	6.1
Union territory GST	25.38	19.47	30.4
Integrated GST	(-)298.06	(-)104.48	--
GST Compensation Cess	805.03	864.82	(-)6.9
Customs	1,288.21	1,321.12	(-)2.5
Excise Duty	1,632.06	1,511.9	7.9
Service Tax	(-)11.37	0.87	--
Other taxes	29.47	46.57	(-)36.7
Total	21,143.9	20,326.34	4.0

 

	Oct 2025	Oct 2024	Sept 2025	Year-on-year % change
Corporation Tax	465.03	263.56	2,373.39	76.4
Income Tax	786.17	619.37	1,500.01	26.9
Securities Transaction Tax	46.26	45.31	39.3	2.1
Other Receipts	0	0	0.02	0.0
Central GST	868.71	803.79	762.34	8.1
Union territory GST	5.22	3.23	5.29	61.6
Integrated GST	(-)209.68	(-)96.02	(-)92.08	--
GST Compensation Cess	73.31	121.59	112.12	(-)39.7
Customs	217.21	191.53	240.38	13.4
Excise Duty	242.88	227.24	269.91	6.9
Service Tax	(-)8.68	(-)0.07	(-)0.28	--
Other taxes	3.93	8.39	3.51	(-)53.2
Total	2,490.36	2,187.92	5,213.91	13.8

 

End

 

Reported by Priyasmita Dutta

Edited by Rajeev Pai

 

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