"In other words it is felt that any shocks to tax collections due to the introduction of GST will be absorbed in the current financial year and hence the tax-GDP ratio will remain at the level of 2016-17," it said.

The government has budgeted for over Rs 19.06 lakh crore from taxes in the current fiscal, a growth of about 15 per cent over the last fiscal.

As per the statement, going forward "in the years 2018-19 and 2019-20 the gains from expansion of the tax base due to the introduction of GST and the increased surveillance post demonetisation will ensure that tax-GDP ratio will increase by 30 basis points".

The tax-GDP ratios are projected to be 11.6 per cent in 2018-19 and 11.9 per cent in 2019-20 respectively, it said.

Goods and Services Tax (GST) was rolled out from July 1 and it is estimated that the new indirect tax regime would add to revenues and boost GDP by about 2 per cent.

Besides, the demonetisation of Rs 500 and Rs 1,000 notes have brought an additional over 1 crore people in the tax net. The tax department has launched operation clean money to detect people whose cash deposits post demonetisation does not match their tax profile.