Indian Govt Beats FY26 Indirect Tax Target, Collects ₹15.52 Lakh Crore Plus from GST, Customs, and Excise

The Indian government has surpassed its FY26 target for indirect tax collections, achieving 101.2% of the revised estimates (RE) pegged at ₹15.52 lakh crore. This encompasses customs, excise, and GST revenues. 

Indirect Tax Collections Breakdown 

As per the RE, the government aimed to collect over ₹15.52 lakh crore in indirect taxes for FY26. This included ₹2.58 lakh crore from customs duty, ₹3.38 lakh crore from excise duty, and ₹9.58 lakh crore from Central Goods and Services Tax (CGST). 

The government achieved collections exceeding 100% of the RE for customs and excise duties. While customs duty collections came in at 102% of RE, excise duty collections were at 101%. Central GST collections reached 100.8% of the RE, contributing to the overall success. 

Shortfall in Health and Security Cess 

Despite overall success, collections from health and national security cess missed the target, achieving only 63% of the expected ₹2,330 crore.  

The cess, levied on pan masala manufacturing, took effect from February 1, 2026, with an additional levy over the GST rate of 40%.  

The government has projected improvements in cess collections for the current fiscal year, with a budget of ₹14,000 crore. 

Cess Collection and Future Projections 

The lower-than-expected collection from the health and security cess indicates challenges in implementing new levies.  

However, the government anticipates improved collections as compliance and enforcement measures take hold. 

Read More: April 1 Tax Changes 2026: Will New Income Tax Rules Impact Your ITR This Year? 

Conclusion 

The government’s success in surpassing indirect tax collection estimates for FY26 highlights effective fiscal strategies, although challenges remain with the health and national security cess. These figures reflect both achievements and areas for improvement in tax administration. 

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