The government has marginally exceeded the indirect tax collection target for fiscal 2025-26, according to an official statement on Thursday. The total indirect tax collection, which includes customs, excise and GST, as per Revised Estimates (RE) was pegged at over ₹15.52 lakh crore for FY26. This comprehensive target encompassed ₹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).
According to the official statement, revenues from customs duty came in at 102% of RE, while excise duty collections achieved 101% of RE. The Central GST collection came in at 100.8% of RE for FY26. The official noted that "Overall, GST plus non-GST collection came in at 101.2% of RE," demonstrating strong performance across all indirect tax categories. Without giving actual figures, the official confirmed that customs duty revenues reached 102% of RE and excise duty collections achieved 101% of RE targets.
Despite strong overall performance, the collection from health and national security cess, which is levied on pan masala manufacturing, missed the target significantly. The Revised Estimates had pegged ₹2,330 crore from health and national security cess collection in FY26, but actual collections for FY26 came in lower at 63% of RE. This represents a substantial shortfall in this specific tax category, with actual collections falling short of the revised estimates.
The official indicated that collections from the health and national security cess are expected to improve in the current fiscal as the levy settles in. For the current fiscal year, the government has budgeted to collect ₹14,000 crore from the cess. The Health and National Security Cess Act levies a cess on the manufacturing capacity of pan masala units effective February 1, 2026, over and above the highest 40% GST rate. Under the current framework, the cess is levied on the manufacturing capacity of pan masala units, creating additional revenue streams beyond the standard GST structure.
