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Informist, Monday, Mar. 30, 2026

 

--Govt Apr-Feb gross tax revenue INR 34.195 tln vs INR 32.042 tln year ago 

--Govt Feb gross tax revenue INR 1.777 tln vs INR 2.199 tln year ago 

 

NEW DELHI – The government's gross tax collections fell 19.2% on year to INR 1.777 trillion in February because of a sharp decline in corporate tax and income tax collections, data released Monday by the Controller General of Accounts showed. At INR 1.777 trillion, the gross tax mop-up in February was the lowest since November 2022.

 

Corporate tax collections in February fell 96% on year to INR 5.98 billion, the lowest since February 2024. Sequentially, February corporate tax collections were down 98% from January. Income tax collections also fell 45% on year to INR 431.17 billion in February. 

 

The government's total tax collections in the 11 months to February rose 6.7% on year to INR 34.195 trillion. Corporate tax collections in the first 11 months of 2025-26 (Apr-Mar) totalled INR 8.626 trillion, up 12.4% on year. The pace of growth in corporate tax collections during Apr-Feb was on par with the 12.4% on-year growth projected in the revised Budget Estimate for FY26.

 

As per revised estimates, the government projected total tax collections in FY26 at INR 40.78 trillion, up 7.4% on year. The revised estimate for total tax collections is INR 1.9 trillion below the Budget estimate for FY26.

 

Income tax collections during Apr-Feb were similar to the year-ago period, at INR 10.00 trillion. Income tax mop-up was up just 0.9% in Apr-Feb, much lower than 6.2% on-year growth assumed in the Budget. The Budget for FY26 projected the revised corporate tax and income tax collections at INR 11.09 trillion and INR 13.12 trillion, respectively, in FY26.

 

Central goods and services tax collections in Apr-Feb were up 6.1% at INR 8.805 trillion. In February, central GST collections grew 5.9% on year to INR 821 billion. GST compensation cess collection dipped 28% on year in Apr-Feb to INR 1.00 trillion, following the overhaul of the GST in September.

 

The GST Council revamped 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%, with effect from Sept. 22. The council also introduced a new GST rate of 40% on sin and luxury goods. 

 

The council also removed the compensation cess on all items, including tobacco products, for which the levy ended on Jan. 31. The government has instead imposed an excise duty on cigarettes in the range of INR 2,050-INR 8,500 per thousand sticks based on the length and type of product.

 

On the indirect tax front, customs and excise duty collections performed well in Apr-Feb. The Budget has projected customs and excise duties to grow 10.8% and 12.1%, respectively, in FY26. As per the latest data, customs duty collections were up 18% on year and excise duty collections were up 11.3% in Apr-Feb.

 

The government has cut the excise duty on petrol and diesel, which is expected to result in a revenue loss of INR 1.0 trillion-INR 1.2 trillion in FY27, ICRA Chief Economist Aditi Nayar said in a note. "However, this is likely to be partly offset by the amount allocated towards the Economic Stabilisation Fund."

 

The government's net tax collections during the 11 months to February rose 6.4% on year to INR 21.452 trillion, with February's net tax down 55% on year at INR 510 billion. The government transferred INR 12.664 trillion to states as tax devolution in Apr-Feb. The total transfer to states so far amounts to nearly 91% of the full-year revised target of INR 13.930 trillion. As per revised estimates, India's net tax collections for FY26 are projected at INR 26.747 trillion.

 

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

 

	Apr-Feb FY26	Apr-Feb FY25	Year-on-year % change
Corporation Tax	8,625.52	7,671.53	12.4
Income Tax	10,002.26	9,914.89	0.9
Securities Transaction Tax	502.83	492.27	2.1
Other Receipts	0.09	0.09	0.0
Central GST	8,804.87	8,301.37	6.1
Union territory GST	64.1	38.64	65.9
Integrated GST	(-)44.86	(-)376.08	--
GST compensation cess	1,003.43	1,383.27	(-)27.5
Customs	2,414.50	2,046.12	18.0
Excise duty	2,785.12	2,501.94	11.3
Service Tax	(-)14.98	0.09	--
Other taxes	52.26	68.13	(-)23.3
Total	34,195.14	32,042.26	6.7

 

	February 2026	January 2026	February 2025	Year-on-year % change
Corporation Tax	5.98	291.88	158.34	(-)96.2
Income Tax	431.17	844.13	786.97	(-)45.2
Securities Transaction Tax	54.12	46.51	46.86	15.5
Other Receipts	(-)0.01	0.01	0.01	--
Central GST	821.82	876.8	776.23	5.9
Union territory GST	5.78	11.34	3.04	90.1
Integrated GST	(-)113.77	(-)87.5	(-)99.98	--
GST compensation cess	48.7	56.96	133.56	(-)63.5
Customs	217.85	239.46	144.36	50.9
Excise duty	299.68	291.34	242.92	23.4
Service Tax	(-)3.15	0.03	0.02	--
Other taxes	8.88	4.36	6.37	39.4
Total	1,777.15	2,575.32	2,198.70	(-)19.2

 

Source: Controller General of Accounts

 

End

 

Reported by Shubham Rana

Edited by Tanima Banerjee and Vandana Hingorani

 

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