Direct and Indirect Tax Collections Rise; Taxpayer Base Expands

The Government stated that net direct tax collections increased from Rs. 14,12,422 crore in FY 2021-22 to Rs. 23,40,373 crore in FY 2025-26, while net indirect tax collections increased from Rs. 12,89,662 crore to Rs. 16,71,867 crore during the same period. Revenue accrued to States through SGST (Gross), IGST Settled and compensation increased from Rs. 3,32,612 crore in 2017-18 to Rs. 10,36,108 crore in 2025-26. GST compensation released during the period totalled the amounts stated in Annexes B and C. To curb tax evasion, the Government cited mandatory PAN and PAN-Aadhaar linking, Annual Information Statement, NUDGE campaigns, prohibition of specified cash transactions, the Black Money Act and amended Benami law. For indirect taxes, measures include the Invoice Management System, special drives against fake registrations and fraudulent ITC, e-invoicing integration, biometric-based Aadhaar authentication for GST registration and sequential filing of GSTR-1 and GSTR-3B. Income-tax return filers increased from 6,96,35,446 in FY 2021-22 to 8,66,82,347 in FY 2025-26.

Government of India
Ministry of Finance
Department of Revenue

LOK SABHA
UNSTARREI) QUESTION NO. †3502
TO BE ANSWERED ON MONDAY, AUGUST 10, 2026/SHRAVANA 19, 1948 (SAKA)

INCREASE IN DIRECT AND INDIRECT TAX COLLECTIONS

†3502. SHRI SANJAY HARIBHAU JADHAV:

SHRI OMPRAKASH BHUPALSINH ALIAS PAVAN RAJENIMBALKAR:

Will the Minister of FINANCE be please to state:

a. the details of direct and indirect tax collections in the country during the last five years along with the categories thereof, year-wise;

b. the details of the changes observed in the revenue accrued to States following the implementation of Goods and Services Tax (GST) and whether it has been evaluated;

c. the details of the amount disbursed to States as GST compensation during the said period ;

d. the steps taken by the Government to curb tax evasion; and

e. the extent of increase in the number of taxpayers filing Income Tax Returns during the last five years along with the details thereof?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUI)HARY)

a. The details of direct and indirect tax collections in the country during the last five years along with the categories thereof, year-wise, are at Annex ‘A’.

b. The details of the changes observed in the revenue accrued to States following the implementation of Goods and Services Tax (GST) are at Annex ‘B’.

c. The details of GST compensation released during the last Five Years are at Annex ‘C’.

(d): The steps taken by the Government to curb tax evasion are as under:

Direct Taxes

i. Mandatory Quoting of PAN and linking of PAN Aadhaar– Quoting of PAN has been mandated for specified transactions and linking of PAN and Aadhaar has also been made compulsory.

ii. Annual Information Statement (AIS): It is a statement that provides complete information about a taxpayer for a particular financial year. It contains information about taxpayers’ incomes, financial transactions, tax details, etc. This transparency curbs evasion by making under-reporting or omission of income easily detectable.

iii. NUDGE Campaign– NUDGE stands for Non-Intrusive Usage of Data to Guide and Enable, which focuses on compliance and correcting filing of the ITRs and related Schedules. Taxpayers are nudged via SMS/email to self-correct, using the facility of revised returns, updated returns which allows reporting of earlier undisclosed income even after the due date of filing original.

iv. Prohibition of cash transactions– Cash receipt of rupees two lakh or more otherwise than by electronic modes has been prohibited under section 186 of the Income-tax Act, 2025.

v. Black Money Act– In order to curb the flow of black money stashed abroad, the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (the Black Money Act) has been enacted.

vi. Benami Law– The Benami Transactions (Prohibition) Act, 1988 was comprehensively amended by the Benami Transactions (Prohibition) Amendment Act, 2016 to enable confiscation of Benami Property and prosecution of benamidar and the beneficial owner.

Indirect Taxes

i. In order to further streamline auto-population of ITC data in returns, the Invoice Management System (IMS) facility has been introduced on the GST portal in late 2024, to help recipient taxpayers manage incoming invoices more effectively. It allows recipients to accept, reject, or mark invoices as pending when these are saved or filed by their supplier taxpayers. With the implementation of IMS, registered recipients can now cross-verify and reconcile invoices reported by suppliers in their GSTR-1, thereby streamlining and strengthening the ITC claim process.

ii. Two special drives, respectively for the period 16.05.2023 to 14.08.2023 and 16.08.2024 to 30.10.2024, were launched on all India basis, both by Central as well as State tax administrations, for a concerted and coordinated action against fake registrations and fraudulent passing of ITC. The drive against non-existent/ fake registrations involved physical verification of the business premises of the taxpayers by duly constituted teams of tax officials. The field verification was accompanied by preparation of necessary reports bringing out the outcome of the verification.

iii. E-invoicing integration is implemented to enable automatic invoice reporting, input tax credit (ITC) reconciliation, e-Way Bill generation, and real-time compliance validation.

iv. Biometric-based Aadhar authentication of GST registration applications has been extended on pan-India basis. Besides, it has been provided through amendment in rule 8(4A) of CGST Rules that an applicant who has not opted for Aadhaar authentication, will also be required to visit GST Suvidha Kendra for taking of photograph and for document verification.

v. Filing of GSTR-1 has been made mandatory before filing of GSTR-3B for a tax period with effect from 01.10.2022. Also, sequential filing of GSTR-1 has been mandated w.e.f. 01.10.2022. Thus, GSTR-1 as well as GSTR-3B has been made totally sequential tax period wise. This ensures that invoice details declared in GSTR-1 by the seller are used to auto-populate available ITC in GSTR-2B.

(e): The extent of increase in the number of taxpayers filing Income Tax Returns during last five years are as under:

Annex ‘A’

Net Direct Tax Collected During the last Five Years, Category wise

Amount in Rs.Crore

*Provisional Figures

@Figures of Non-Corporate Tax includes taxes paid by individuals, HUFs, Firms, AoPs, BoIs, Local Authorities, Artificial

Juridical person. It also includes Collections of Security Transaction Tax.

Net Indirect tax collections during the last five years, categories wise

Amount in Rs. Crore

Source: Receipt Budget, Pr.CCA (CBIC); P: Provisional, Above collection are net of refunds/settlement.

# With effect from FY 2025-26, HSNS (Health Security se National Security) Cess has also been included.

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