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Informist, Friday, Jul. 31, 2026

 

NEW DELHI – The central government's tax collections in Apr-Jun rose 3.7% on year to INR 9.009 trillion, mainly due to a sharp fall in the integrated goods and services tax, compensation cess, and excise duty collections, data released by the Controller General of Accounts on Friday showed. Tax collections in June showed an improved recovery from May and grew 6.4% year-on-year to INR 3.763 trillion.

 

The tax collection in Apr-Jun accounted for nearly 20.5% of the Budget target of INR 44.041 trillion for the current financial year. In the first three months of 2026-27 (Apr-Mar), the central government had an outflow of INR 68.53 billion under the integrated GST, compared with an inflow of INR 273.12 billion a year ago. The government collected a little under INR 2 billion in GST compensation cess, down from INR 383.25 billion a year ago, reflecting the discontinuation of the compensation cess from Feb. 1. Excise duty collections, on other hand, were down 22.4% on year to INR 431.49 billion.

 

These three items pulled down the government's overall tax collection for the first three months. The government's net tax collection during the period, however, was up 17.8% on year to INR 6.366 trillion on the back of lower tax devolution to states.

 

The government devolved INR 2.633 trillion to states in Apr-Jun, down 19.5% on year. In June, the government devolved only one tranche of monthly devolution to states worth INR 877.79 billion compared to two instalments of INR 1.634 trillion in June last year. Therefore, the government's net tax collection for June jumped INR 52.2% on year to INR 2.884 trillion. The 16th Finance Commission has recommended sharing 41% of central taxes with states. Typically, the devolution is released to states in 14 equal instalments.

 

Income tax collections continued to be the top contributor to the Centre's coffers, growing 6.9% in June to INR 1.005 trillion, bringing the total for Apr-Jun to INR 3.054 trillion, up 6.8% from last year. On other hand, corporate tax collections in June were to the tune of INR 1.501 trillion, up 17.5% on year, taking the total collection under the head in Apr-Jun to INR 2.068 trillion, up 19.7% on year.

 

The government's central GST revenue maintained its steady pace of growth in June and Apr-Jun. It grew 5% on year in June to INR 806.14 billion. In Apr-Jun, the government collected INR 2.710 trillion from central GST, up 16.9% on year. Customs duty collection also grew at a robust pace, reflecting the change in duties announced in May. It grew 33.1% in June to INR 175.21 billion, taking the total for the first quarter to INR 577.41 billion, up 36.1% on year. 

 

The Budget has projected total tax collections for FY27 at INR 44.041 trillion, up 8% from last year's revised estimate. The government had missed the revised target for FY26 by INR 534 billion. 

 

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

	Apr-June 2026	Apr-June 2025	Year-on-year % change
Corporation Tax	2,068.27	1,727.49	19.7
Income Tax	3,053.95	2,858.29	6.8
Securities Transaction Tax	188.56	130.15	44.9
Other Receipts	(-)0.06	0.04	--
Central GST	2,709.5	2317.23	16.9
Union territory GST	11.94	7.79	53.3
Integrated GST	(-)68.53	273.12	--
GST compensation cess	1.93	383.25	(-)99.5
Customs	577.41	424.14	36.1
Excise duty	431.49	556.05	(-)22.4
Service Tax	(-)3.75	(-)1.52	--
Other taxes	38.51	14.06	173.9
Total	9,009.22	8,690.09	3.7

 

	Jun-26	May-26	Jun-25	YoY % change
Corporation Tax	1,501.46	314.87	1277.88	17.5
Income Tax	1,004.93	877.95	940.13	6.9
Securities Transaction Tax	73.2	74.31	49.29	48.5
Other Receipts	(-)0.02	(-)0.02	0	--
Central GST	806.14	825.89	767.39	5.0
Union territory GST	5.61	1.95	2.88	94.8
Integrated GST	(-)35.39	35.27	(-)61.18	--
GST compensation cess	0.07	3.73	133.19	(-)99.9
Customs	175.21	227.96	131.6	33.1
Excise duty	219.51	207.51	292.06	(-)24.8
Service Tax	(-)2.05	(-)0.86	0.16	--
Other taxes	14.72	13.88	4.38	236.1
Total	3,763.39	2,582.44	3,537.78	6.4

 

End

 

Reported by Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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