Jammu, Feb 17: Jammu and Kashmir recorded a steady rise in GST collections, with total revenue amounting to Rs 24,080.79 crore over the past three financial years, reflecting improved compliance and a widening tax base, the UT government said on Tuesday.
Replying to a written question by National Conference MLA Pirzada Farooq Ahmed in the Assembly, Chief Minister Omar Abdullah said GST collections in J&K stood at Rs 7,272.15 crore in 2022–23, increased to Rs 8,128.44 crore in 2023–24 and further rose to Rs 8,680.20 crore in 2024–25.
The Chief Minister said that the Union Territory also received Rs 15,795.13 crore as its share of Integrated GST (IGST) from the Centre during the same three-year period. He said J&K received 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 as IGST settlement.
The government said that GST is a destination-based tax under which revenue accrues to the state where goods or services are consumed rather than where they are produced.
“The GST regime, implemented in 2017, replaced a multi-layered indirect tax system with a unified structure, reduced cascading of taxes and improved compliance through technology-driven processes such as online registration, return filing, refunds and e-way bill generation”.
The Chief Minister said that the single-tax system has eased compliance for taxpayers, strengthened tax administration and expanded the tax base, leading to a significant rise in monthly GST revenues in the Union Territory.
The steady growth in GST collections and IGST receipts indicates improved revenue mobilisation and more efficient tax administration in Jammu and Kashmir, he added.
He said that the implementation of the Goods and Services Tax (GST) in the Union Territory since July 2017 has simplified the indirect tax regime, improved compliance and widened the tax base.
He said that GST replaced the earlier multi-layered tax structure with a unified system, reduced cascading taxes and leveraged technology for registration, return filing, refunds and e-way bill generation. “The reforms have eased compliance for taxpayers and strengthened tax administration, leading to a significant rise in average monthly GST revenue”.
While the shift to an online compliance system initially posed challenges for small and rural businesses, these were largely addressed through measures such as the Composition Scheme, quarterly return options and the QRMP scheme, along with the establishment of GST Suvidha Kendras in every district, he said.
Abdullah said that GST reforms have particularly benefited the handicrafts sector through rate rationalisation, placing most handicraft items in the 5 per cent tax slab and easing interstate trade.
“In horticulture, farm income remains outside GST, with only value-added activities attracting tax, while concessional rates apply to key inputs. In the tourism sector, subsuming of entry tax and lower GST rates for hotels have made travel to J&K more affordable”, he said.
However, the chief minister acknowledged challenges for small, unorganised and home-based producers, including compliance burdens, delayed payments and IGST refunds, and said these issues are being addressed through continued simplification and support measures.
