Jammu and Kashmir GST Collections Rise to Rs 24,080.79 Crore in Three Years, Signals Stronger Compliance

Jammu, February 17: Jammu and Kashmir has recorded steady growth in Goods and Services Tax collections over the past three financial years, with total GST revenue touching Rs 24,080.79 crore, reflecting improved compliance and an expanding tax base in the Union Territory.

The details were shared in the Assembly in response to a written question by National Conference MLA Pirzada Farooq Ahmed. Chief Minister Omar Abdullah outlined the year-wise performance, highlighting consistent growth in GST collections.

Year-Wise GST Collections in Jammu and Kashmir​

According to the data presented, GST collections in Jammu and Kashmir have shown a steady upward trend:

• 2022–23: Rs 7,272.15 crore
• 2023–24: Rs 8,128.44 crore
• 2024–25: Rs 8,680.20 crore

This takes the cumulative GST collection for the three-year period to Rs 24,080.79 crore.

The Chief Minister stated that the sustained rise in revenues reflects better tax administration and increased compliance under the GST framework.

IGST Settlement from the Centre Crosses Rs 15,795 Crore​

In addition to GST collections, Jammu and Kashmir received Rs 15,795.13 crore as its share of Integrated GST from the Centre during the same period.

The IGST settlement details are as follows:

• 2022–23: Rs 4,922.57 crore
• 2023–24: Rs 5,183.62 crore
• 2024–25: Rs 5,688.94 crore

The government said that GST is a destination-based tax system, under which revenue accrues to the state where goods or services are consumed rather than where they are produced.

GST Implementation Strengthens Revenue Base​

The Chief Minister said the GST regime, implemented in 2017, replaced the earlier multi-layered indirect tax structure with a unified system. The reform reduced cascading of taxes and improved compliance through technology-driven processes such as online registration, return filing, refunds, and e-way bill generation.

He added that the single-tax system has eased compliance for taxpayers, strengthened tax administration, and expanded the tax base, leading to a significant rise in average monthly GST revenue in the Union Territory.

Support Measures for Small and Rural Businesses​

While the transition to an online compliance system initially posed challenges for small and rural businesses, the government introduced several support mechanisms. These included:

• The Composition Scheme
• Quarterly return options
• QRMP scheme
• Establishment of GST Suvidha Kendras in every district

These measures helped address early compliance issues and encouraged wider participation in the formal tax system.

Sector-Wise Impact: Handicrafts, Horticulture and Tourism​

The Chief Minister highlighted sector-specific benefits under GST reforms.

In the handicrafts sector, rate rationalisation placed most handicraft items in the 5 per cent tax slab and eased interstate trade.

In horticulture, farm income remains outside GST, with only value-added activities attracting tax. Concessional rates apply to key inputs.

In the tourism sector, the subsuming of entry tax and lower GST rates for hotels have made travel to Jammu and Kashmir more affordable.

Ongoing Challenges and Reform Efforts​

Despite improvements, the Chief Minister acknowledged challenges faced by small, unorganised and home-based producers. These include compliance burdens, delayed payments, and issues related to IGST refunds.

He said the government is continuing efforts to simplify procedures and provide support measures to address these concerns.

The steady rise in GST collections and IGST receipts underscores improved revenue mobilisation and a more efficient tax administration framework in Jammu and Kashmir.