New Delhi: Good news is flowing for the government on the tax front with net indirect tax collections (GST & non-GST) registering a 12.3 per cent increase in FY21 largely on account of increased excise collections from petroleum products and improved GST inflows.
As per provisional figures, net indirect tax collections for FY21 stood at Rs 10.71 lakh crore as compared to Rs 9.54 lakh crore for previous fiscal (FY20). Net Indirect Tax Collection for the last year shows that 108.2 per cent of the Revised Estimates (RE) of indirect taxes for FY21 has been achieved.
The improved performance of indirect tax collections weighs heavily on central excise collections. Net Tax collections on account of Central Excise and Service Tax (Arrears) during Financial Year 2020-21 stood at Rs 3.91 lakh crore as compared to Rs 2.45 lakh crore in the previous Financial Year, thereby registering a growth of more than 59 per cent. Excise collections had been higher and government substantially increased excise duty on petrol and diesel last year in May to mobilise resources for Covid relief and economic stimulus measures.
The customs collections also saw an increase last year with net tax collections standing at Rs 1.32 lakh crore as compared to Rs 1.09 lakh crore during the previous Financial Year, thereby registering a growth of around 21 per cent.
Net Tax collections on account of GST of Centre (CGST+IGST+ Compensation Cess) during Financial Year 2020-21 stood at Rs 5.48 lakh crore as compared to Rs 5.99 lakh crore in the previous Financial Year. Revised estimates of Net GST collection including CGST and Compensation Cess for FY 2020-21 was Rs 5.15 Lakh Crore. Thus, the actual net GST collections is 106 per cent of the total targeted collection, though these are 8 per cent lower than the last FYs collection.
The GST collections were severely affected in the first half of the Financial year on account of Covid. However, in the second half, the GST collections registered a good growth and collections exceeded Rs 1 lakh crore in each of the last six months. March saw an all-time high of GST collection at Rs 1.24 lakh crore after very good figures in the month of January and February.
The indirect tax numbers are provisional and subject to change pending reconciliation.