Goods And Services Tax

The government has projected a modest 5 per cent growth in customs revenue for FY2026-27 after taking into account the impact of free trade pacts, duty exemptions on capital goods imports and tapering of edible oil imports, a top official said on Monday. Goods and Services Tax (GST) revenues in FY27 are projected to grow at 6.3 per cent, with a buoyancy of 0.94 even after a reduction in tax rates on about 375 items with effect from September 22, 2025, Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Chaturvedi said in a post-Budget interview to PTI. The FY'27 tax revenue targets are realistic and achievable, the CBIC chief added. The Budget has projected a 5 per cent growth in Customs revenue at Rs 2.71 lakh crore in FY'27. In GST, the collection is estimated at Rs 10.19 lakh crore, which would be a 6.3 per cent growth YoY after excluding the compensation cess which ended in January. Chaturvedi said modest growth projections in Customs are based on the assumption t

Gross GST collections rose 6.2 per cent to over Rs 1.93 lakh crore in January, mainly on higher revenues from imports, sources said on Sunday. Total refunds declined 3.1 per cent to Rs 22,665 crore. Net Goods and Services Tax (GST) revenues, however, grew 7.6 per cent to about Rs 1.71 lakh crore in January. Cess collection (from tobacco products) in January stood at Rs 5,768 crore. This compares to Rs 13,009 crore in collections in January last year when a cess was levied on luxury, sin and demerit goods such as cars, and tobacco products. Effective September 22, 2025, GST rates on about 375 items were slashed, making goods cheaper. Also, a compensation cess is levied only on tobacco and related products, as opposed to luxury, sin and demerit goods earlier. The lowering of GST rates has impacted revenue collections. Gross tax collections from domestic transactions grew 4.8 per cent to Rs 1.41 lakh crore, while import revenues were up 10.1 per cent to Rs 52,253 crore in January.

The survey proposes policy designs relying on trust-based models, such as a "trusted dealer" framework, where taxpayers with strong compliance records face minimal physical checks

Crisil expects India's cigarette volumes to fall 6-8% next fiscal as higher excise duty and GST from February squeeze demand, especially in the mass segment

In a relief for taxpayers, the GST Appellate Tribunal has asked registries to take a lenient view on procedural defects in appeals during the initial six months

India's revamped quarterly GDP series will use GST, e-Vahan and gas consumption data, adopting IMF-recommended methods to improve accuracy and reduce volatility

EPFO may empanel 'Suvidha Providers' to help members resolve grievances for a small fee, with the proposal set for approval at the CBT meeting in February

The upstream sector wants a reduction in cess on crude oil, restoration of tax holidays for new blocks and exemption of exploration activities from GST

December saw the highest-ever e-way bill generation, signalling strong goods movement, improved consumption, and the impact of GST 2.0 rate rationalisation

Auto sector saw record annual retail volume at 2.82 mn units

Emkay Research points out that GST cuts have boosted consumer sentiment, and growth benefits are likely to be visible going ahead

The Centre projected a net revenue loss of about ₹47,000 crore due to GST rate rationalisation, even as higher taxation on select goods was expected to partly offset the impact

Market participants said the decision to double the VRR amount was due to outflows due to advance tax and goods and services tax (GST) collections, expected to be Rs 2 trillion

Life insurers have formed committee to discuss the capping of distributor commission

The rollout of GST appellate tribunal benches is likely to miss the December deadline as staffing gaps and infrastructure delays stall operations, leaving lakhs of tax disputes unresolved

Parliament clears the Manipur GST amendment, aligning the state with national GST reforms, including track-and-trace, simplified voucher rules, clarified definitions and uniform appeal procedures

The headline HSBC purchasing managers index (PMI) figure, compiled by S&P Global, for November fell sharply to 56.6 from 59.2 in October

Other macro indicators give mixed signals; car sales stay strong

Finance Minister Nirmala Sitharaman is expected to introduce two Bills to replace the GST compensation cess on tobacco and pan masala with new levies designed to fund national security

The government is likely to introduce two bills in the Lok Sabha to replace GST compensation cess with another levy, to ensure that the tax incidence remains the same on tobacco, pan masala and other sin goods after discontinuation of the cess. The Central Excise Amendment Bill, 2025, and The Health Security se National Security Cess Bill, 2025, are listed for introduction on Monday by Finance Minister Nirmala Sitharaman. According to sources, the Central Excise Amendment Bill, 2025, will replace GST compensation cess on tobacco by levying excise duty on tobacco. The 'Health Security se National Security Cess Bill, 2025', will replace the compensation cess on pan masala. It seeks to "augment the resources for meeting Security expenditure on national security and for public health, and levy a cess for the said purposes on the machines installed or other processes undertaken by which specified goods are manufactured or produced". Currently, Goods and Services Tax (GST) at 28 per cent