The Rajya Sabha Unstarred Question No. 2641, answered on August 11, 2026, on “Revenue Collected through Indirect Taxes” was answered by the Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary. The Question sought year-wise details of revenue collected through GST, Union Excise Duties, Customs Duties and various cesses during the last five years, besides the Government’s assessment of the impact of indirect taxation on low-income households and measures to reduce the tax burden on economically weaker sections.
The Government informed the Rajya Sabha that net Central indirect tax collections increased from ₹12,89,662 crore in FY 2021-22 to ₹16,71,867 crore in FY 2025-26, with the latest figure being provisional. Collections stood at ₹13,81,935 crore in FY 2022-23, ₹14,96,114 crore in FY 2023-24 and ₹15,60,480 crore in FY 2024-25.
Of the total, GST collections comprising CGST, residual IGST and Compensation Cess increased from ₹6,98,114 crore in FY 2021-22 to ₹10,65,335 crore in FY 2025-26. GST collections were ₹8,49,132 crore in FY 2022-23, ₹9,57,208 crore in FY 2023-24 and ₹10,27,041 crore in FY 2024-25.
The Government stated that Customs collections rose from ₹1,99,728 crore in FY 2021-22 to ₹2,64,394 crore in FY 2025-26. Customs revenue stood at ₹2,13,372 crore in FY 2022-23, ₹2,33,119 crore in FY 2023-24 and ₹2,33,201 crore in FY 2024-25.
Union Excise collections amounted to ₹3,41,851 crore in FY 2025-26, compared with ₹3,90,808 crore in FY 2021-22. The corresponding collections were ₹3,19,000 crore in FY 2022-23, ₹3,05,362 crore in FY 2023-24 and ₹3,00,253 crore in FY 2024-25.
The non-GST component of Central indirect taxes, comprising Customs, Union Excise, Service Tax and the applicable cess, stood at ₹6,06,531 crore in FY 2025-26, against ₹5,91,548 crore in FY 2021-22. The Health Security se National Security (HSNS) Cess, amounting to ₹2,061 crore, was introduced in FY 2025-26.
The Government clarified that these collection figures are net of refunds and drawback and, in the case of CGST and IGST, net of settlement.
On the distributive impact of indirect taxes, the Government stated that GST rates and exemptions are prescribed on the recommendations of the GST Council, a constitutional body comprising representatives of the Union, States and Union Territories. While recommending tax rates and exemptions, the Council considers various factors, including their impact on the common man, persons below the poverty line and other economic criteria.
The Government said that essential goods and services forming a major part of the consumption basket of lower-income households have traditionally been kept at lower GST rates, while aspirational and luxury goods and services are generally subjected to higher rates.
The GST Council, at its 56th meeting held on September 3, 2025, undertook a comprehensive GST rate rationalisation exercise aimed, among other things, at reducing the tax burden on commodities and services commonly consumed by middle- and lower-income households. The Government stated that GST rates have been reduced on more than 350 commodities and services.
As part of the rationalisation measures, the list of nil-rated goods was expanded to include essential food items, exercise books/notebooks and 36 life-saving drugs. The GST Council also recommended full exemption from GST on all individual life insurance policies and health insurance policies.
At the same time, a special demerit GST rate of 40 per cent applies to selected luxury and sin goods and services, including luxury cars, motorcycles above 350cc, yachts, aircraft for personal use, pan masala and entry to casinos and race clubs.
The Government stated that these measures are aligned with the objective of reducing the indirect tax burden on items commonly consumed by the general public while imposing higher tax rates on luxury and sin goods and services.
The Answer can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/08/RS-Revenue-collected-through-indirect-taxes-11.08.2026.pdf
