Government Exceeds FY26 Indirect Tax Collection Estimates by Rs 15.52 Lakh Crore

Government Exceeds Indirect Tax Collection Target for FY26

The government has marginally exceeded the indirect tax collection target for fiscal 2025-26, an official announced on Thursday. According to the Revised Estimates (RE), the total indirect tax collection, which includes customs, excise, and GST, was pegged at over Rs 15.52 lakh crore for FY26. This includes Rs 2.58 lakh crore from customs duty, Rs 3.38 lakh crore from excise duty, and Rs 9.58 lakh crore from Central Goods and Services Tax (CGST).

The collections from customs duty came in at 102 per cent of the RE, while excise duty collections reached 101 per cent of the RE. The Central GST collection came in at 100.8 per cent of the RE for FY26. Overall, GST plus non-GST collection came in at 101.2 per cent of the RE.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

However, the collection from health and national security cess, which is levied on pan masala manufacturing, has missed the target. The RE had pegged collections from the health and national security cess at Rs 2,330 crore for FY26. However, actual collections fell short, reaching only 63 per cent of the RE.

The Health and National Security Cess Act levies a cess on the manufacturing capacity of pan masala units, effective February 1, 2026. The cess is levied over and above the highest 40 per cent GST rate. The official stated that the collections from the cess are expected to improve in the current fiscal as the levy settles in. The government has budgeted to collect Rs 14,000 crore from the cess in the current fiscal.