Jammu and Kashmir Records Steady Rise in GST Collections
The Union Territory of Jammu and Kashmir has seen a consistent increase in Goods and Services Tax (GST) collections over the past three financial years, totaling Rs 24,080.79 crore. This growth reflects improved compliance and an expanding tax base, as highlighted by the UT government on Tuesday.
In response to a query posed by National Conference MLA Pirzada Farooq Ahmed in the Assembly, Chief Minister Omar Abdullah revealed that GST collections in J&K amounted to Rs 7,272.15 crore in 2022–23. This figure rose to Rs 8,128.44 crore in 2023–24 and further increased to Rs 8,680.20 crore in 2024–25.
Additionally, Jammu and Kashmir received Rs 15,795.13 crore as its share of Integrated GST (IGST) from the Centre during the same three-year period. The UT obtained Rs 4,922.57 crore in 2022–23, Rs 5,183.62 crore in 2023–24, and Rs 5,688.94 crore in 2024–25 through IGST settlement.
It was noted that under the GST regime, revenue is attributed to the state where goods or services are consumed, rather than where they are produced. This system has replaced a complex multi-layered indirect tax structure with a unified framework, reducing tax cascading and enhancing compliance through technology-driven processes like online registration, return filing, refunds, and e-way bill generation.
Chief Minister Abdullah emphasized that the single-tax system has simplified compliance for taxpayers, strengthened tax administration, and broadened the tax base, resulting in a significant increase in monthly GST revenues in Jammu and Kashmir.
The consistent growth in GST collections and IGST receipts indicates enhanced revenue mobilization and more effective tax administration in the region. Since the implementation of GST in July 2017, the indirect tax regime has been streamlined, compliance has improved, and the tax base has expanded.
Although transitioning to an online compliance system initially posed challenges for small and rural businesses, these were largely mitigated through measures such as the Composition Scheme, quarterly return options, and the QRMP scheme. Furthermore, GST Suvidha Kendras were established in every district to assist businesses in complying with the new system.
Abdullah highlighted that GST reforms have particularly benefited the handicrafts sector by rationalizing tax rates, placing most handicraft items in the 5% tax slab, and facilitating interstate trade. In horticulture, farm income remains exempt from GST, with only value-added activities being taxed at concessional rates. The tourism sector has also witnessed positive changes, with the subsuming of entry tax and lower GST rates for hotels making travel to Jammu and Kashmir more affordable.
Despite the progress, challenges persist for small, unorganized, and home-based producers. Issues such as compliance burdens, delayed payments, and IGST refunds are being addressed through ongoing simplification and support measures.
