Polls, higher expenditure may boost GST mop-up in Q1 FY25
General elections are set to boost collection from Goods & Services Tax (GST) during first three months – April to June – of next fiscal year 2024-25 starting April 1. Impact of election was observed in 2019, first general election after introduction of GST.
Number of factors can be attributed to possible rise in GST collection. First is increase in candidate’s expenses limit. During the forthcoming election per candidate limit would be Rs.95 lakh for all States expect Arunachal Pradesh, Goa and Sikkim. For these three States, the limit would be Rs.75 lakh. In 2019 general elections, limits were Rs.70 lakh and Rs.54 lakh. Similarly for all Union Territories, except Delhi, the limit has been enhanced to Rs.75 lakh from Rs.54 lakhs. For NCT of Delhi, the limit is Rs.95 lakh as against Rs.70 lakh.
Along with general elections, there are polls for legislative assemblies in four States – Andra Pradesh, Odisha, Arunachal Pradesh and Sikkim. Also, there are bye-election to 26 Assembly Constituencies of Bihar, Haryana, Gujarat, Jharkhand, Maharashtra, Telangana, Tripura, Uttar Pradesh and West Bengal. Per candidate expenditure limit for Assembly seats have also been enhanced to Rs.40 lakh from Rs.28 lakh in bigger States and NTC of Delhi and Rs.28 lakh from Rs.20 lakh in Goa, Arunachal Pradesh, Manipur, Mehgahlaya, Mizoram, Nagaland, Sikkim and Tripura.
