JAMMU — Jammu and Kashmir recorded a steady rise in GST collections over the past three financial years, with total revenue amounting Rs 24,080.79 crore, reflecting improved compliance and a widening tax base, the Union Territory government informed the Assembly on Tuesday.
Replying to a written question by National Conference MLA Pirzada Farooq Ahmed, Chief Minister Omar Abdullah said GST collections stood at 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 said the UT also received Rs 15,795.13 crore as its share of Integrated GST (IGST) from the Centre during the same period — 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.
Abdullah said GST is a destination-based tax under which revenue accrues to the state where goods or services are consumed, adding that the unified tax regime introduced in 2017 replaced the earlier multi-layered indirect tax system, reduced cascading of taxes and improved compliance through technology-driven processes such as online registration, return filing, refunds and e-way bill generation.
He said 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 revenues in the Union Territory.
While acknowledging that the shift to online compliance initially posed challenges for small and rural businesses, Abdullah said 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.
The chief minister said GST reforms have benefited sectors such as handicrafts through rate rationalisation, with most items placed in the five per cent tax slab, 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 tourism, the subsuming of entry tax and lower GST rates for hotels have made travel to J&K more affordable, he said.
However, Abdullah acknowledged challenges for small, unorganised and home-based producers, including compliance burdens, delayed payments and IGST refunds, adding that these issues are being addressed through continued simplification and support measures. — (PTI)