Lok Sabha Question No. 4364 (UNSTARRED), answered on 2023-03-27
Subject: Collection of Revenues from Cess and Surcharge
Ministry: FINANCE
Asked by: P. Velusamy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 4364

ANSWERED ON Monday, THE 27 th  MARCH, 2023/ Chaitra 6, 1945 (Saka)

## Collection of Revenues from Cess and Surcharge

4364. SHRI VELUSAMY P:

## Will the Minister of Finance be pleased to state:

- a) the percentage and the details of cess and surcharge in gross revenue collected by the Government during each of the last three years;
- b) whether  the  15 th Finance  Commission    has  recommended  for  the  cess  and surcharge  collected  to  become  part  of  the  divisible  pool  and  if  so,  the  details thereof; and
- c) the amount of cess and surcharge shared with all the States including the State of Tamil Nadu?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

***

- a) The details of Cess and Surcharge and their percentage in gross revenue collected by the Government during each of the last three years are given in Annexure 'A';
- b) No, Sir;
- c) Receipts  from  levy  of  cesses  are  for  meeting  specific  expenditure  of  Union Government such as education, health, transport, infrastructure, etc. and are not shareable  with  States  as  part  of  central  taxes  assigned  to  States.    However, Centrally Sponsored schemes like Samagra Shiksha and Mid-day Meal scheme are implemented through State Governments and financed through Prarambhik Shiksa Kosh,  a  reserve  fund  financed  through  'Health  and  Education  Cess'.    Therefore, cesses allocated to Centrally Sponsored Schemes are used to finance development/welfare  measures  in  the  States.  The  amount  of  Cess  utilized  for transfer to State Governments for implementation of Centrally Sponsored Schemes through dedicated reserve funds is given in Annexure 'B'. However, in the case of GST Compensation Cess, the proceeds of the Cess leviable is initially credited to the Consolidated Fund of India, in terms of Article 266 of the Constitution of India, and the funds are provided to the States/UTs through GST Compensation Fund created in Public Account of India as per provisions of the GST Compensation Act, 2017. In the year 2022-23, despite the collection of ₹ 1,15,650 crore (till February 2022), a total amount of ₹ 1,49,168 was released to the states/UTs. Further, during the FY(s) 2020-21 and 2021-22, the Union Government decided to borrow an amount of ₹ 1.1 lakh crore and ₹ 1.59 lakh crore to meet the shortfall in GST Compensation Cess collections  and  transferred  the  amount  to  the  States  as  back-to-back  loan  to strengthen the States' resources.

****

| Statement showing details of surcharge and cesses estimated as part of principal taxes Annexure 'A'   | Statement showing details of surcharge and cesses estimated as part of principal taxes Annexure 'A'   | Statement showing details of surcharge and cesses estimated as part of principal taxes Annexure 'A'   | Statement showing details of surcharge and cesses estimated as part of principal taxes Annexure 'A'   | Statement showing details of surcharge and cesses estimated as part of principal taxes Annexure 'A'   | Statement showing details of surcharge and cesses estimated as part of principal taxes Annexure 'A'   | Statement showing details of surcharge and cesses estimated as part of principal taxes Annexure 'A'   | Statement showing details of surcharge and cesses estimated as part of principal taxes Annexure 'A'   | Statement showing details of surcharge and cesses estimated as part of principal taxes Annexure 'A'   | Statement showing details of surcharge and cesses estimated as part of principal taxes Annexure 'A'   |
|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|
| ( ₹ crore )                                                                                           | ( ₹ crore )                                                                                           | ( ₹ crore )                                                                                           | ( ₹ crore )                                                                                           | ( ₹ crore )                                                                                           | ( ₹ crore )                                                                                           | ( ₹ crore )                                                                                           | ( ₹ crore )                                                                                           | ( ₹ crore )                                                                                           | ( ₹ crore )                                                                                           |
| Sl. No.                                                                                               | Name of the levy                                                                                      | Actuals 2019-20                                                                                       | %of Actuals 2019-20 w.r.t GTR                                                                         | Actuals 2020-21                                                                                       | %of Actuals 2020-21 w.r.t GTR                                                                         | Actuals 2021-22                                                                                       | %of Actuals 2021- 22 w.r.t GTR                                                                        | Revised Estimate 2022-23                                                                              | %of RE 2022- 23 w.r.t GTR                                                                             |
| SURCHARGE                                                                                             |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |
| 1                                                                                                     | Surcharge under Corporation Tax                                                                       | 19053.92                                                                                              | 0.95                                                                                                  | 14078.57                                                                                              | 0.69                                                                                                  | 15890.31                                                                                              | 0.59                                                                                                  | 80288.46                                                                                              | 2.64                                                                                                  |
| 2                                                                                                     | Surcharge under Taxes on Income                                                                       | 5236.92                                                                                               | 0.26                                                                                                  | 5537.78                                                                                               | 0.27                                                                                                  | 7922.88                                                                                               | 0.29                                                                                                  | 75961.53                                                                                              | 2.50                                                                                                  |
| 3                                                                                                     | Surcharge under Fringe Benefit Tax                                                                    | 0.00                                                                                                  | 0.00                                                                                                  | 0.33                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  |
| 4                                                                                                     | Social Welfare Surcharge under Customs                                                                | 8796.12                                                                                               | 0.44                                                                                                  | 13447.39                                                                                              | 0.66                                                                                                  | 16945.06                                                                                              | 0.63                                                                                                  | 17000.00                                                                                              | 0.56                                                                                                  |
| Total                                                                                                 | Surcharge (1 to 4)                                                                                    | 33086.96                                                                                              | 1.65                                                                                                  | 33064.07                                                                                              | 1.63                                                                                                  | 40758.25                                                                                              | 1.50                                                                                                  | 173249.99                                                                                             | 5.69                                                                                                  |
| CESSES                                                                                                |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |
| A.                                                                                                    | GST Compensation Cess                                                                                 | 95553.09                                                                                              | 4.75                                                                                                  | 85191.91                                                                                              | 4.20                                                                                                  | 104768.66                                                                                             | 3.87                                                                                                  | 130000.00                                                                                             | 4.27                                                                                                  |
| B.                                                                                                    | Other Cesses (excluding GST Compensation Cess)                                                        |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |                                                                                                       |
| 1                                                                                                     | Health and Education Cess                                                                             | 39131.10                                                                                              | 1.95                                                                                                  | 35821.55                                                                                              | 1.77                                                                                                  | 52732.33                                                                                              | 1.95                                                                                                  | 62500.01                                                                                              | 2.05                                                                                                  |
| 2                                                                                                     | Krishi Kalyan Cess                                                                                    | 40.13                                                                                                 | 0.00                                                                                                  | 10.61                                                                                                 | 0.00                                                                                                  | 7.24                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  |
| 3                                                                                                     | National Calamity Contingent Duty                                                                     | 2380.40                                                                                               | 0.12                                                                                                  | 5098.81                                                                                               | 0.25                                                                                                  | 7074.87                                                                                               | 0.26                                                                                                  | 8000.00                                                                                               | 0.26                                                                                                  |
| 4                                                                                                     | Primary Education Cess                                                                                | 81.48                                                                                                 | 0.00                                                                                                  | 61.85                                                                                                 | 0.00                                                                                                  | 15.44                                                                                                 | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  |
| 5                                                                                                     | Secondary & Higher Educatio Cess                                                                      | 27.97                                                                                                 | 0.00                                                                                                  | 11.42                                                                                                 | 0.00                                                                                                  | 2.50                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  |
| 6                                                                                                     | Health Cess                                                                                           | 0.00                                                                                                  | 0.00                                                                                                  | -13.52                                                                                                | 0.00                                                                                                  | 31.02                                                                                                 | 0.00                                                                                                  | 20.00                                                                                                 | 0.00                                                                                                  |
| 7                                                                                                     | Agriculture Infrastructure and Development Cess                                                       | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 76950.68                                                                                              | 2.84                                                                                                  | 73500.00                                                                                              | 2.42                                                                                                  |
| 8                                                                                                     | Cesses on Exports                                                                                     | 5759.14                                                                                               | 0.29                                                                                                  | 9214.64                                                                                               | 0.45                                                                                                  | 1457.10                                                                                               | 0.05                                                                                                  | 2100.00                                                                                               | 0.07                                                                                                  |
| 9                                                                                                     | Road and Infrastructure Cess*                                                                         | 122424.32                                                                                             | 6.09                                                                                                  | 235782.55                                                                                             | 11.63                                                                                                 | 195986.96                                                                                             | 7.23                                                                                                  | 58200.00                                                                                              | 1.91                                                                                                  |
| 10                                                                                                    | Infrastructure Cess                                                                                   | 0.94                                                                                                  | 0.00                                                                                                  | -0.07                                                                                                 | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  |
| 11                                                                                                    | Cess on Crude Oil                                                                                     | 14062.49                                                                                              | 0.70                                                                                                  | 10894.44                                                                                              | 0.54                                                                                                  | 19353.84                                                                                              | 0.71                                                                                                  | 21000.00                                                                                              | 0.69                                                                                                  |
| 12                                                                                                    | Cess on Bidi                                                                                          | 0.02                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 0.01                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  |
| 13                                                                                                    | Cess on Sugar                                                                                         | 3.50                                                                                                  | 0.00                                                                                                  | 0.35                                                                                                  | 0.00                                                                                                  | 0.02                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  |
| 14                                                                                                    | Cess on Automobiles                                                                                   | 1.08                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 0.01                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  |
| 15                                                                                                    | Others                                                                                                | 14.98                                                                                                 | 0.00                                                                                                  | 0.03                                                                                                  | 0.00                                                                                                  | -0.16                                                                                                 | 0.00                                                                                                  | 0.00                                                                                                  | 0.00                                                                                                  |

| 16   | Clean Environment Cess                           |     24.56 |   0.00 |      0.01 |   0.00 |     23.86 |   0.00 |   0.00 |   0.00 |
|------|--------------------------------------------------|-----------|--------|-----------|--------|-----------|--------|--------|--------|
| 17   | Cess on Jute                                     |      2.18 |   0    |      0.06 |   0    |      0.04 |   0    |      0 |   0    |
| 18   | Cess on Tobacco                                  |      0.03 |   0    |      0.01 |   0    |      0.07 |   0    |      0 |   0    |
| 19   | Cess on Salt                                     |      0    |   0    |      0    |   0    |     -0.2  |   0    |      0 |   0    |
| 20   | Swachh Bharat Cess                               |     46.63 |   0    |     17.34 |   0    |      9.63 |   0    |      0 |   0    |
| 21   | Water Cess                                       |     11.16 |   0    |      6.82 |   0    |      2.78 |   0    |      0 |   0    |
| 22   | R & D Cess                                       |     14.68 |   0    |     16.77 |   0    |     16.42 |   0    |      0 |   0    |
| 23   | Other Cess                                       |      0    |   0    |      0    |   0    |      0    |   0    |      0 |   0    |
| B.   | Other Cesses (excluding GST Compensation Cess)   | 184027    |   9.16 | 296924    |  14.65 | 353664    |  13.05 | 225320 |   7.4  |
| C.   | Total Cess including GST Compensation Cess (A+B) | 279580    |  13.91 | 382116    |  18.85 | 458433    |  16.92 | 355320 |  11.68 |

| Annexure 'B'                                                                             | Annexure 'B'                                                                             | Annexure 'B'                                                                             | Annexure 'B'                                                                             | Annexure 'B'                                                                             | Annexure 'B'                                                                             |
|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
| Amount Spent/allocated for Centrally Sponsored Scheme through cess related Reserve Funds | Amount Spent/allocated for Centrally Sponsored Scheme through cess related Reserve Funds | Amount Spent/allocated for Centrally Sponsored Scheme through cess related Reserve Funds | Amount Spent/allocated for Centrally Sponsored Scheme through cess related Reserve Funds | Amount Spent/allocated for Centrally Sponsored Scheme through cess related Reserve Funds | Amount Spent/allocated for Centrally Sponsored Scheme through cess related Reserve Funds |
| S.No                                                                                     | Centrally Sponsored Scheme financed from CESS                                            | 2019-20                                                                                  | 2020-21                                                                                  | 2021-22                                                                                  | (₹ crore) RE 2022-23                                                                     |
| 1                                                                                        | Central Road and Infrastructure Fund                                                     | 18392.22                                                                                 | 33762.88                                                                                 | 33802.85                                                                                 | 26919.29                                                                                 |
| 2                                                                                        | Prarambhik Shiksha Kosh                                                                  | 26848.35                                                                                 | 30168.34                                                                                 | 31788.25                                                                                 | 38000.00                                                                                 |
| 3                                                                                        | Pradhan Mantri Swasthya Suraksha Nidhi                                                   | …                                                                                        | 14899.86                                                                                 | 15783.80                                                                                 | 13701.97                                                                                 |
| 4                                                                                        | Madhyamik and Uchchtar Shiksha Kosh                                                      | 5510.00                                                                                  | 2911.28                                                                                  | 3750.00                                                                                  | 4000.00                                                                                  |
|                                                                                          | Total                                                                                    | 50750.57                                                                                 | 81742.36                                                                                 | 85124.90                                                                                 | 82621.26                                                                                 |