Strong GST Growth in J&K 

The steady rise in Goods and Services Tax collections in Jammu and Kashmir over the past three financial years reflects a gradual strengthening of the Union Territory’s fiscal framework and improved tax compliance. Official data presented in the Legislative Assembly indicates that total GST collections between 2022 and 2025 reached Rs 24,080.79 crore. The figures show a consistent upward trend, with revenue increasing from Rs 7,272.15 crore in 2022–23 to Rs 8,128.44 crore in 2023–24 and further to Rs 8,680.20 crore in 2024–25.

This growth has been accompanied by a steady rise in the Union Territory’s share of Integrated GST from the Centre. During the same three-year period, Jammu and Kashmir received Rs 15,795.13 crore as IGST settlement. The annual distribution stood at 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. These figures suggest improved interstate trade reporting and greater alignment with the national tax framework. GST, introduced in 2017, replaced a complex, multi-layered indirect tax system with a unified and destination-based structure, under which revenue accrues to the state where goods or services are consumed. For a region like Jammu and Kashmir, where sectors such as tourism, trade, and services contribute significantly to consumption patterns, this structure holds particular relevance. The consistent rise in collections indicates that economic activity is being captured more effectively within the formal tax system. Technology has played a crucial role in this transformation. Processes such as online registration, digital return filing, automated refunds, and e-way bill generation have enhanced transparency and streamlined compliance. The gradual increase in average monthly collections over the past three years reflects growing familiarity among taxpayers with digital systems and a more responsive tax administration. The widening tax base is another notable development. As more businesses integrate into the GST network, formalization of the economy gains momentum. This not only strengthens revenue mobilization but also improves access to institutional credit and market linkages for enterprises. Measures such as the Composition Scheme, the Quarterly Return Monthly Payment option, and the establishment of GST Suvidha Kendras in every district have helped small traders and rural businesses adapt to the digital compliance framework. Sector-specific impacts are also visible. The handicrafts sector, an important cultural and economic pillar of Jammu and Kashmir, has benefited from rate rationalization, with most handicraft items placed in the 5 percent slab. This has eased interstate trade and supported artisans in accessing wider markets. In horticulture, while primary farm income remains outside GST, value-added activities attract tax at concessional rates, balancing revenue objectives with support to growers. The tourism sector has gained from the subsuming of earlier entry taxes and rationalized GST rates for hotels and hospitality services, which has improved cost transparency and enhanced the visitor experience. At the same time, certain challenges remain. Small and unorganized producers have occasionally faced compliance burdens, delayed payments, and issues related to IGST refunds. Continued simplification of procedures, awareness campaigns, and responsive grievance redressal mechanisms will be essential to ensure that growth in collections does not come at the cost of smaller enterprises. The overall trajectory of GST and IGST receipts in Jammu and Kashmir points towards improved fiscal stability and administrative efficiency. Rising collections provide greater financial space for public investment in infrastructure, healthcare, education, and employment generation. As the tax system continues to mature, a balanced approach that combines revenue growth with sectoral support and inclusive compliance will help consolidate these gains. The data over the past three years suggests cautious optimism. With sustained reforms, technological strengthening, and continued engagement with taxpayers, Jammu and Kashmir can further deepen its fiscal resilience while fostering a more transparent and integrated economic environment.

The encouraging growth in GST collections presents an opportunity to further strengthen development efforts across Jammu and Kashmir. It would be meaningful if this increased revenue is carefully channeled into infrastructure, employment generation, digital empowerment, and support for small and emerging enterprises. Continued simplification of procedures, timely refunds, and transparent compliance systems can help build greater trust, broaden participation, and ensure that fiscal progress remains inclusive and sustainable.