J&K GST Collections Cross Rs 24,000 Crore in Three Years, IGST Share Nears Rs 16,000 Crore

• Steady Rise in GST Revenue Reflects Expanding Tax Base in J&K, Says CM Omar Abdullah

JAMMU, February 17: Jammu and Kashmir has witnessed a consistent upward trend in Goods and Services Tax collections over the past three financial years, with total revenue reaching Rs 24,080.79 crore between 2022–23 and 2024–25. The figures were shared by Chief Minister Omar Abdullah in the Legislative Assembly while responding to a written query from National Conference MLA Pirzada Farooq Ahmed.

According to the data placed before the House, GST collections in the Union Territory stood at Rs 7,272.15 crore in 2022–23. This rose to Rs 8,128.44 crore in 2023–24 and further increased to Rs 8,680.20 crore in 2024–25, reflecting steady growth in revenue mobilisation and improved compliance levels.

In addition to its own GST collections, Jammu and Kashmir received Rs 15,795.13 crore as its share of Integrated GST settlement from the Centre during the same period. The IGST share amounted to 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. The Chief Minister noted that the destination based nature of GST ensures that revenue accrues to the state or Union Territory where goods and services are consumed, rather than where they are produced.

The GST regime, introduced nationwide in July 2017, replaced a complex and multi layered indirect tax structure with a unified system. It subsumed several central and state taxes, reduced the cascading effect of taxation and strengthened compliance through technology enabled processes. Online registration, electronic return filing, automated refunds and e way bill generation have streamlined tax administration and enhanced transparency.

The Chief Minister stated that the unified tax framework has simplified procedures for taxpayers and broadened the tax base in Jammu and Kashmir. The shift to digital compliance initially posed challenges, particularly for small and rural businesses unfamiliar with online systems. However, the government introduced measures such as the Composition Scheme, quarterly return filing options and the QRMP scheme to ease the compliance burden. GST Suvidha Kendras were also established across districts to provide assistance and handholding to traders and entrepreneurs.

Sector specific benefits were also highlighted during the discussion. In the handicrafts sector, rate rationalisation placed most products in the five percent tax slab, facilitating smoother interstate trade and supporting artisans. In horticulture, primary farm income remains outside the GST ambit, while only value added activities attract tax. Concessional rates have been applied to essential inputs, providing relief to growers. In the tourism sector, subsuming of entry tax and rationalised GST rates for hotels and services have contributed to making travel to Jammu and Kashmir more affordable.

While acknowledging the positive revenue trend, the Chief Minister also pointed out challenges faced by small, unorganised and home based producers. Issues such as compliance complexity, working capital pressures and delays in IGST refunds have affected some segments. He assured the House that these concerns are being addressed through ongoing simplification of procedures and support mechanisms.

The steady rise in GST collections, coupled with increasing IGST settlements, indicates improved fiscal capacity and more efficient tax administration in the Union Territory. The data reflects not only stronger compliance but also broader economic activity and formalisation. As Jammu and Kashmir continues to integrate technology driven systems into governance, revenue mobilisation appears to be strengthening in tandem with structural reforms.