The Lok Sabha Unstarred Question No. 3502, to be answered on Monday, August 10, 2026/Shravana 19, 1948 (Saka), on “Increase in Direct and Indirect Tax Collections” was answered by the Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary. The Question sought details of direct and indirect tax collections during the last five years, changes in revenue accrued to States following implementation of GST, GST compensation released to States, measures taken to curb tax evasion and the increase in the number of taxpayers filing Income Tax Returns.
The Government informed the Lok Sabha that net direct tax collections increased from ₹14,12,422 crore in FY 2021-22 to ₹23,40,373 crore in FY 2025-26, with the figure for FY 2025-26 being provisional. During the period, collections stood at ₹16,63,686 crore in FY 2022-23, ₹19,60,166 crore in FY 2023-24 and ₹22,26,375 crore in FY 2024-25.
Within direct taxes, Corporate Tax collections increased from ₹7,12,037 crore in FY 2021-22 to ₹10,99,130 crore in FY 2025-26, while Non-Corporate Tax collections rose from ₹6,96,604 crore to ₹12,40,920 crore during the same period. Non-Corporate Tax includes taxes paid by individuals, Hindu Undivided Families, firms, Associations of Persons, Bodies of Individuals, local authorities and artificial juridical persons, besides Securities Transaction Tax collections.
The Government further stated that net indirect tax collections rose from ₹12,89,662 crore in FY 2021-22 to ₹16,71,867 crore in FY 2025-26, according to provisional figures. Indirect tax collections comprise Customs duty, Union Excise Duty, Service Tax, Health Security se National Security Cess and GST collections.
Total GST collections reflected in the indirect tax data increased from ₹6,98,114 crore in FY 2021-22 to ₹10,65,335 crore in FY 2025-26. The Government stated that the collection figures are net of refunds and settlement. Health Security se National Security Cess has also been included in the non-GST indirect tax figures with effect from FY 2025-26.
On revenue accrued to States following implementation of GST, Government data showed an increase in the total comprising gross SGST, IGST settlement and compensation to States from ₹3,32,612 crore in FY 2017-18 to ₹10,36,108 crore in FY 2025-26. The corresponding total was ₹8,96,215 crore in FY 2021-22, ₹9,19,915 crore in FY 2022-23, ₹9,19,169 crore in FY 2023-24 and ₹9,80,841 crore in FY 2024-25.
For FY 2025-26, the revenue accrued to States included ₹5,51,302 crore as gross SGST, ₹4,77,829 crore as IGST settled and ₹6,978 crore as compensation to States, taking the overall amount to ₹10,36,108 crore.
The Government also provided State/UT-wise details of GST compensation released over the years. According to the annexure, the aggregate GST compensation and related surplus cess distribution reflected in the statement amounted to about ₹9.43 lakh crore, covering releases from FY 2017-18 onwards and distribution of surplus cess during FY 2025-26.
On measures to curb direct tax evasion, the Government said quoting of PAN has been made mandatory for specified transactions and PAN-Aadhaar linking has also been made compulsory. The Annual Information Statement (AIS) provides comprehensive information relating to taxpayers’ incomes, financial transactions and tax details, helping detect under-reporting or omission of income.
The Government also highlighted the NUDGE — Non-Intrusive Usage of Data to Guide and Enable — campaign, under which taxpayers are encouraged through SMS and email communications to correct Income Tax Returns and related schedules, including through revised and updated returns. It also referred to restrictions on high-value cash transactions, the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, and provisions dealing with Benami transactions as part of its anti-evasion framework.
On the indirect tax side, the Government said the Invoice Management System (IMS) was introduced on the GST portal in late 2024 to enable recipient taxpayers to accept, reject or keep invoices pending and to cross-check invoices reported by suppliers in GSTR-1, thereby strengthening the Input Tax Credit claim and reconciliation process.
The Government also referred to two nationwide special drives conducted jointly by Central and State tax administrations against fake GST registrations and fraudulent passing of Input Tax Credit, covering the periods May 16-August 14, 2023 and August 16-October 30, 2024. These drives included physical verification of business premises to identify non-existent and fake registrations.
Other anti-evasion measures include e-invoicing integration for automatic invoice reporting, ITC reconciliation, e-Way Bill generation and real-time compliance validation, besides extension of biometric-based Aadhaar authentication for GST registration applications on a pan-India basis. Applicants not opting for Aadhaar authentication are also required, subject to the applicable rules, to visit a GST Suvidha Kendra for photograph capture and document verification.
The Government further stated that filing of GSTR-1 before GSTR-3B and sequential filing of returns have been mandated from October 1, 2022. The measure ensures that invoice details declared by sellers in GSTR-1 are used for auto-population of available ITC in GSTR-2B, strengthening reconciliation and compliance.
The number of persons filing Income Tax Returns has also registered a sustained increase over the last five years. Income Tax Return filers increased from 6.96 crore in FY 2021-22 to 8.67 crore in FY 2025-26. The number stood at 7.40 crore in FY 2022-23, 8.09 crore in FY 2023-24 and 8.56 crore in FY 2024-25.
The data presented in Parliament thus indicates a sustained expansion in both direct and indirect tax collections, along with an increase in the Income Tax Return filing base and continued use of technology-driven measures by the Government to strengthen tax compliance, improve invoice matching and curb tax evasion.
The Answer can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/08/LS-Increase-in-Direct-and-Indirect-Tax-Collections-10.08.2026.pdf
