Lok Sabha Question No. 4268 (UNSTARRED), answered on 2023-03-27
Subject: Rise in the Collection of Cess and Surcharges
Ministry: FINANCE
Asked by: Vellalath Kochukrishnan Nair. Sreekandan

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

## LOK SABHA UNSTARRED QUESTION NO. 4268

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

## Rise in the Collection of Cess and Surcharges

4268. SHRI V.K. SREEKANDAN:

## Will the Minister of FINANCE be pleased to state

- a) Whether there has been a rise in the collection of cess and surcharges levied by the Government of various products during the five-year period between 2017-18 and 2022-23 and if so, the details thereof;
- b) the  details  of  the  amount  spent/allocated  for  financing  of  centrally  sponsored schemes out of the cess collected during the said period; and
- c) the details of the amount spent/allocated out of the surcharge collected and spent during the said period?

## ANSWER

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

- a) The details of collection of Cess and Surcharges levied by the Government during the five-year period from 2017-18 to 2022-23 are given in Annexure 'A'. The total amount of Cess and Surcharge grew by 63.74% from 2017-18 to 2022-23 (RE). It may  be  mentioned  that  the  collections  under  GST  Compensation  Cess  grew  by 107.6%  from  2017-18  to  2022-23  (RE).  The  GST  Compensation  Cess  is  fully transferred to the Stats/UTs;
- b) The  details  of  the  amount  spent/allocated  for  financing  of  Centrally  Sponsored Schemes out of the Cess collected during the said period are 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;
- c) The Surcharges levied by the Government are not meant for any specific purpose. These are used, in general, for various activities of the Government including public health, subsidies, education, interest payments, defence etc.

***

Annexure 'A'

| Details of collection of Cess and Surcharge levied by the Government   | Details of collection of Cess and Surcharge levied by the Government   | Details of collection of Cess and Surcharge levied by the Government   | Details of collection of Cess and Surcharge levied by the Government   | Details of collection of Cess and Surcharge levied by the Government   | Details of collection of Cess and Surcharge levied by the Government   | Details of collection of Cess and Surcharge levied by the Government   | Details of collection of Cess and Surcharge levied by the Government   |
|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|
| Sl. No.                                                                | Name of the levy                                                       | Actuals 2017-18                                                        | Actuals 2018-19                                                        | Actuals 2019-20                                                        | Actuals 2020-21                                                        | Actuals 2021-22                                                        | ( ₹ crore ) Revised Estimates 2022-23                                  |
| SURCHARGE                                                              |                                                                        |                                                                        |                                                                        |                                                                        |                                                                        |                                                                        |                                                                        |
| 1                                                                      | Surcharge under Corporation Tax                                        | 21439.48                                                               | 25448.59                                                               | 19053.92                                                               | 14078.57                                                               | 15890.31                                                               | 80288.46                                                               |
| 2                                                                      | Surcharge under Taxes on Income                                        | 3211.77                                                                | 4291.69                                                                | 5236.92                                                                | 5537.78                                                                | 7922.88                                                                | 75961.53                                                               |
| 3                                                                      | Surcharge under Fringe Benefit Tax                                     | 0.00                                                                   | 0.01                                                                   | 0.00                                                                   | 0.33                                                                   | 0.00                                                                   | 0.00                                                                   |
| 4                                                                      | Social Welfare Surcharge under Customs                                 | 1221.88                                                                | 8871.19                                                                | 8796.12                                                                | 13447.39                                                               | 16945.06                                                               | 17000.00                                                               |
|                                                                        | Total Surcharge (1 to 4)                                               | 25873.13                                                               | 38611.48                                                               | 33086.96                                                               | 33064.07                                                               | 40758.25                                                               | 173249.99                                                              |
| CESSES                                                                 |                                                                        |                                                                        |                                                                        |                                                                        |                                                                        |                                                                        |                                                                        |
| A.                                                                     | GST Compensation Cess                                                  | 62611.59                                                               | 95080.71                                                               | 95553.09                                                               | 85191.91                                                               | 104768.66                                                              | 130000.00                                                              |
| B.                                                                     | Other Cesses (excluding GST Compensation Cess)                         |                                                                        |                                                                        |                                                                        |                                                                        |                                                                        |                                                                        |
| 1                                                                      | Health and Education Cess                                              | 0.00                                                                   | 41177.44                                                               | 39131.10                                                               | 35821.55                                                               | 52732.33                                                               | 62500.01                                                               |
| 2                                                                      | Krishi Kalyan Cess                                                     | 4266.84                                                                | 168.89                                                                 | 40.13                                                                  | 10.61                                                                  | 7.24                                                                   | 0.00                                                                   |
| 3                                                                      | National Calamity Contingent Duty                                      | 2938.44                                                                | 1797.80                                                                | 2380.40                                                                | 5098.81                                                                | 7074.87                                                                | 8000.00                                                                |
| 4                                                                      | Primary Education Cess                                                 | 21117.31                                                               | 97.40                                                                  | 81.48                                                                  | 61.85                                                                  | 15.44                                                                  | 0.00                                                                   |
| 5                                                                      | Secondary& Higher Educatio Cess                                        | 10538.80                                                               | 34.24                                                                  | 27.97                                                                  | 11.42                                                                  | 2.50                                                                   | 0.00                                                                   |
| 6                                                                      | Health Cess                                                            | 0.00                                                                   | 0.00                                                                   | 0.00                                                                   | -13.52                                                                 | 31.02                                                                  | 20.00                                                                  |
| 7                                                                      | Agriculture Infrastructure and Development Cess                        | 0.00                                                                   | 0.00                                                                   | 0.00                                                                   | 0.00                                                                   | 76950.68                                                               | 73500.00                                                               |
| 8                                                                      | Cesses on Exports                                                      | 384.56                                                                 | 1690.23                                                                | 5759.14                                                                | 9214.64                                                                | 1457.10                                                                | 2100.00                                                                |
| 9                                                                      | Road and Infrastructure Cess*                                          | 83132.29                                                               | 110847.16                                                              | 122424.32                                                              | 235782.55                                                              | 195986.96                                                              | 58200.00                                                               |
| 10                                                                     | Infrastructure Cess                                                    | 903.90                                                                 | 6.36                                                                   | 0.94                                                                   | -0.07                                                                  | 0.00                                                                   | 0.00                                                                   |
| 11                                                                     | Cess on Crude Oil                                                      | 13579.21                                                               | 17814.23                                                               | 14062.49                                                               | 10894.44                                                               | 19353.84                                                               | 21000.00                                                               |
| 12                                                                     | Cess on Bidi                                                           | 32.60                                                                  | -0.03                                                                  | 0.02                                                                   | 0.00                                                                   | 0.01                                                                   | 0.00                                                                   |

| 13                                                | Cess on Sugar                                                                                                                                   | 793.40                                                                                                                                          | 13.40                                                                                                                                           | 3.50                                                                                                                                            | 0.35                                                                                                                                            | 0.02                                                                                                                                            | 0.00                                                                                                                                            |
|---------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| 14                                                | Cess on Automobiles                                                                                                                             | 96.42                                                                                                                                           | 0.08                                                                                                                                            | 1.08                                                                                                                                            | 0.00                                                                                                                                            | 0.01                                                                                                                                            | 0.00                                                                                                                                            |
| 15                                                | Others                                                                                                                                          | 451.82                                                                                                                                          | -21.52                                                                                                                                          | 14.98                                                                                                                                           | 0.03                                                                                                                                            | -0.16                                                                                                                                           | 0.00                                                                                                                                            |
| 16                                                | Clean Environment Cess                                                                                                                          | 11463.43                                                                                                                                        | 4.88                                                                                                                                            | 24.56                                                                                                                                           | 0.01                                                                                                                                            | 23.86                                                                                                                                           | 0.00                                                                                                                                            |
| 17                                                | Cess on Jute                                                                                                                                    | 22.71                                                                                                                                           | 0.16                                                                                                                                            | 2.18                                                                                                                                            | 0.06                                                                                                                                            | 0.04                                                                                                                                            | 0.00                                                                                                                                            |
| 18                                                | Cess on Tobacco                                                                                                                                 | 0.33                                                                                                                                            | 0.07                                                                                                                                            | 0.03                                                                                                                                            | 0.01                                                                                                                                            | 0.07                                                                                                                                            | 0.00                                                                                                                                            |
| 19                                                | Cess on Salt                                                                                                                                    | 0.00                                                                                                                                            | 0.00                                                                                                                                            | 0.00                                                                                                                                            | 0.00                                                                                                                                            | -0.20                                                                                                                                           | 0.00                                                                                                                                            |
| 20                                                | Swachh Bharat Cess                                                                                                                              | 4289.63                                                                                                                                         | 216.40                                                                                                                                          | 46.63                                                                                                                                           | 17.34                                                                                                                                           | 9.63                                                                                                                                            | 0.00                                                                                                                                            |
| 21                                                | Water Cess                                                                                                                                      | 188.90                                                                                                                                          | 6.76                                                                                                                                            | 11.16                                                                                                                                           | 6.82                                                                                                                                            | 2.78                                                                                                                                            | 0.00                                                                                                                                            |
| 22                                                | R & D Cess                                                                                                                                      | 191.41                                                                                                                                          | 45.34                                                                                                                                           | 14.68                                                                                                                                           | 16.77                                                                                                                                           | 16.42                                                                                                                                           | 0.00                                                                                                                                            |
| 23                                                | Other Cess                                                                                                                                      | 0.00                                                                                                                                            | 0.00                                                                                                                                            | 0.00                                                                                                                                            | 0.00                                                                                                                                            | 0.00                                                                                                                                            | 0.00                                                                                                                                            |
| B. Other Cesses (excluding GST Compensation Cess) | B. Other Cesses (excluding GST Compensation Cess)                                                                                               | 154392.00                                                                                                                                       | 173899.29                                                                                                                                       | 184026.79                                                                                                                                       | 296923.67                                                                                                                                       | 353664.46                                                                                                                                       | 225320.01                                                                                                                                       |
| Total Cess including GST Compensation Cess        | (A+B)                                                                                                                                           | 217003.59                                                                                                                                       | 268980.00                                                                                                                                       | 279579.88                                                                                                                                       | 382115.58                                                                                                                                       | 458433.12                                                                                                                                       | 355320.01                                                                                                                                       |
| *                                                 | Includes additional duty of excise on petrol and diesel, which were known as 'road cess' before introduction of 'road and infrastructure cess'. | Includes additional duty of excise on petrol and diesel, which were known as 'road cess' before introduction of 'road and infrastructure cess'. | Includes additional duty of excise on petrol and diesel, which were known as 'road cess' before introduction of 'road and infrastructure cess'. | Includes additional duty of excise on petrol and diesel, which were known as 'road cess' before introduction of 'road and infrastructure cess'. | Includes additional duty of excise on petrol and diesel, which were known as 'road cess' before introduction of 'road and infrastructure cess'. | Includes additional duty of excise on petrol and diesel, which were known as 'road cess' before introduction of 'road and infrastructure cess'. | Includes additional duty of excise on petrol and diesel, which were known as 'road cess' before introduction of 'road and infrastructure cess'. |

| Annexure 'B'                                                                             | Annexure 'B'                                                                             | 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 | Amount Spent/allocated for Centrally Sponsored Scheme through Cess Related Reserve Funds | Amount Spent/allocated for Centrally Sponsored Scheme through Cess Related Reserve Funds |
|                                                                                          |                                                                                          |                                                                                          |                                                                                          |                                                                                          |                                                                                          |                                                                                          | (₹ crore)                                                                                |
| S.No                                                                                     | Centrally Sponsored Scheme financed from CESS                                            | 2017-18                                                                                  | 2018-19                                                                                  | 2019-20                                                                                  | 2020-21                                                                                  | 2021-22                                                                                  | RE 2022-23                                                                               |
| 1                                                                                        | Central Road and Infrastructure Fund                                                     | 14819.36                                                                                 | 16477.45                                                                                 | 18745.72                                                                                 | 35609.37                                                                                 | 36396.44                                                                                 | 42239.52                                                                                 |
| 2                                                                                        | Prarambhik Shiksha Kosh                                                                  | 19091.94                                                                                 | 24850.99                                                                                 | 26848.35                                                                                 | 30168.34                                                                                 | 31788.25                                                                                 | 38000.00                                                                                 |
| 3                                                                                        | Pradhan Mantri Swasthya Suraksha Nidhi                                                   | 0.00                                                                                     | …                                                                                        | …                                                                                        | 15505.24                                                                                 | 16244.08                                                                                 | 13721.97                                                                                 |
| 4                                                                                        | Rashtriya Swahhata Kosh                                                                  | 3068.00                                                                                  | ….                                                                                       | ….                                                                                       | …                                                                                        | …                                                                                        | …..                                                                                      |
| 5                                                                                        | Madhyamik and Uchchtar Shiksha Kosh                                                      | …                                                                                        | 4946.05                                                                                  | 5510.00                                                                                  | 2911.28                                                                                  | 3750.00                                                                                  | 4000.00                                                                                  |
|                                                                                          | Total                                                                                    | 36979.30                                                                                 | 46274.49                                                                                 | 51104.07                                                                                 | 84194.23                                                                                 | 88178.77                                                                                 | 97961.49                                                                                 |