India’s Net Indirect Tax Collections Rise 12% In FY21
India’s indirect tax collection rose in the fiscal ended March even as goods and services tax revenue fell because of Covid-19.
Net indirect tax collection increased 12.3% over the previous fiscal to Rs 10.71 lakh crore in FY21, according to the provisional figures released by the Finance Ministry on Tuesday. That compares with Rs 9.54 lakh crore in FY20.
“Net indirect tax collection for the financial year 2020-21 shows that 108.2% of the revised estimates has been achieved,” the ministry said in a statement.
But the increase was mainly led by non-GST revenues. The net GST collection fell 8% over the previous fiscal Rs 5.48 lakh crore. This amount includes central and integrated GST, and the compensation cess.
The government said the GST collections were “severely” affected in the first half of the fiscal on account of the pandemic. But they rebounded in the second half, exceeding Rs 1 lakh crore in each of the six months.
In March, the GST revenues collected for the month of February rose to a record of Rs 1.24 lakh crore. That helped the government exceed the revised GST target for FY21.
Non-GST indirect tax revenue rose.
- Net custom collections stood at Rs 1.32 lakh crore in FY21, up around 21% from Rs 1.09 lakh crore in the previous fiscal, according to the provisional data.
- Net central excise and service tax (arrears) jumped 59% to Rs 3.91 lakh crore from Rs 2.45 lakh crore.