The Centre’s indirect tax collection rose by more than 12% to Rs. 10.71 trillion in FY21 compared to Rs. 9.54 trillion in the previous year, even as Goods And Services Tax mop-up declined by 8%. Experts attributed it to the hikes in customs duties as well as petrol and diesel taxes, coupled with some recovery in consumption during the second half.
The collection was also 8.2% higher than the revised estimate of Rs. 9.89 trillion, showed the preliminary figures released by the Ministry of Finance. This helped the overall tax collection reach Rs. 20.16 trillion in FY21, slightly higher than the Rs. 20.05-trillion mop-up in the previous financial year. This was achieved despite a 10% decline in direct tax collection.
Indirect tax comprises GST, excise duty, and customs. Customs duty collection stood at Rs. 1.32 trillion during FY21, representing around 21% growth year-on-year. The collection from central excise duty and service tax (arrears) was up more than 58% at Rs. 3.91 trillion during 2020-21, as against Rs. 2.45 trillion in FY20.