Jammu, Feb 18: Jammu and Kashmir has witnessed consistent growth in GST collections over the past three financial years, with total revenue reaching Rs 24,080.79 crore, reflecting better compliance and an expanding tax base, the UT government informed the Assembly on Tuesday.
Replying to a written question by National Conference MLA Pirzada Farooq Ahmed, Omar Abdullah said GST collections in J&K were Rs 7,272.15 crore in 2022–23, rose to Rs 8,128.44 crore in 2023–24, and further increased to Rs 8,680.20 crore in 2024–25.
He also stated that the Union Territory received Rs 15,795.13 crore as its share of Integrated GST (IGST) from the Centre during the same three-year period. The IGST settlement 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.
The government explained 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.
Implemented in 2017, the GST regime replaced the earlier multi-layered indirect tax structure with a unified system. It reduced cascading taxes and strengthened compliance through technology-driven processes such as online registration, return filing, refunds and e-way bill generation.
The Chief Minister said the single-tax system has simplified procedures for taxpayers, improved tax administration and broadened the tax base, resulting in a steady rise in average monthly GST revenue in the Union Territory.
He noted that while the transition to an online compliance system initially posed difficulties for small and rural businesses, these challenges were largely addressed through measures such as the Composition Scheme, quarterly return filing options, the QRMP scheme and the establishment of GST Suvidha Kendras in every district.
Abdullah highlighted that GST reforms have particularly benefited the handicrafts sector through rate rationalisation, with most handicraft items placed in the 5 per cent tax slab, easing interstate trade.
In the horticulture sector, he said farm income remains outside GST, with tax applicable only on value-added activities and concessional rates on key inputs. In tourism, the subsuming of entry tax and rationalised GST rates for hotels have made travel to J&K more affordable.
However, he acknowledged that small, unorganised and home-based producers continue to face challenges such as compliance burdens, delayed payments and IGST refund issues, adding that the government is working towards further simplification and support measures to address these concerns. (Agency)
