Customs, Excise Indirect Tax Increase in COVID-Hit Year

Customs, Excise Indirect Tax Increase in COVID-Hit Year

According to the Finance Ministry’s Tuesday data, the net indirect tax collection increased by 12.3% to ₹ 10.71 lakh crore in FY15 due to a surge in excise revenue.

The Goods and Services Tax (GST) collection for the full year fell from ₹ 5.99 lakh crore to ₹ 5.48 lakh crore in FY15, but there was a sharp jump in the overall kitty in excise.

“Net tax collections due to Central Excise and Service Tax (arrears) during FY 2020-21 were 3.91 lakh crores as compared to ₹ 2.45 lakh crores in the previous financial year, registering an increase of over 59%, The ministry said in a statement. The collection of customs duty also increased 21% to ₹ 1.32 lakh crore, benefiting the government exchequer.

Saket Patwari, executive director of financial consultancy Nexidigm, said, “The 59% increase in net central excise and service tax (arrears) collection is due to the Sabbath Biswas scheme to resolve legacy disputes.” “In addition, the increase in customs has increased,” he said. The net direct tax collection for FY 21, which has been hit by the epidemic, rose by almost 5% to 9.45 lakh crore, provisional data showed last week.

Under cohesion

Both direct and indirect tax numbers are subject to reconciliation.

“GST collections were severely affected in the first half of the financial year,” the ministry said. However, in the second half, GST collections registered a good growth and collections in the last six months exceeded ₹ 1 lakh crore each.

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