The governments indirect tax revenue has fallen by 28% in the April-July period due due to a cut in the indirect tax rates, Finance Minister Pranab Mukherjee said, adding that mop-up was expected to improve from October.

"We are, however, hopeful of meeting the indirect tax targets for the current fiscal."

Revenues from customs duty also fell due to a decline in imports, the finance minister said.

Mukherjee said the government would soon release the contours of the fast-tracked goods and services tax (GST) which the government had promised to implement by April 2010. The next round of the GST meet takes place on September 16.