How much will GST impact Budget math?

The government will likely collect more Goods and Services Tax (GST) this financial year than it expected to, with a continuous rise in the monthly mop-up suggesting the Budget estimate for 2023-24 could be revised upwards when Finance Minister Nirmala Sitharaman presents the Interim Budget for 2024-25 on February 1, 2024.

In the first eight months of 2023-24, total GST collections have amounted to Rs 13.32 lakh crore, 12 percent more than what was collected in April-November 2022. Monthly collections have also been going up steadily ever since the new indirect tax regime was rolled out on July 1, 2017, as Sitharaman has told Parliament.

"GST collection rose to a record high of Rs 1.87 lakh crore in April 2023. Further, monthly GST collection during current financial year has crossed the Rs 1.50 lakh crore-mark each time till now," the finance minister said in response to a question in the Lok Sabha on December 4.

A total of Rs 13.7 lakh crore worth direct taxes (net) have been collected so far in the current financial year 2023-24, representing a 20.66 per cent increase on a yearly basis, according to provisional figures put out by the government on December 18.

Impact on Budget
High GST boosts government revenue, aiding fiscal health, infrastructure, and social programs, enhancing economic stability and investor confidence.