India Tax Revenue 2026-27
Tax Revenue
28.67 lakh crore
India's net tax revenue to the Centre for FY 2026-27 stands at Rs 28.67 lakh crore. This is after sharing with states as mandated by the Finance Commission. Gross tax revenue includes income tax, corporate tax, GST (central share), customs duty, and union excise duty.
FY 2026-27
28.67 lakh crore
FY 2025-26
26.7 lakh crore
Components of Tax Revenue
Gross Tax Revenue comprises Direct Taxes (income tax and corporate tax, contributing ~55%) and Indirect Taxes (GST central share, customs duty, union excise, contributing ~45%). After deducting states' share as recommended by the Finance Commission (currently 41% of divisible pool), the Centre retains the "net to Centre" amount for its own expenditure.
Tax-to-GDP Ratio
India's tax-to-GDP ratio has been gradually improving, reaching about 11.7% in recent years. However, this remains below the OECD average of 34% and emerging market average of 21%. Widening the tax base through GST rationalisation, digital payment tracking, and reducing exemptions are key strategies to improve collection.
GST and Its Impact
The Goods and Services Tax (introduced July 2017) unified India's fragmented indirect tax structure. Monthly GST collections have consistently exceeded Rs 1.5 lakh crore, reflecting formalisation of the economy and improved compliance. GST revenue is shared equally between Centre and states (CGST and SGST).
Related Budget Data
Source: Union Budget Documents, Ministry of Finance, Government of India. All figures in Indian Rupees. Data provided by GovtBudget.com.