JAMMU: The Goods and Services Tax (GST), introduced across India on July 1, 2017, marked a transformative shift in the country’s indirect tax regime, replacing a complex web of central and state taxes with a unified, consumption-based tax system.
In Jammu and Kashmir, the implementation of GST faced distinct challenges but has since played a pivotal role in fostering economic integration and growth.
Unlike other states, J&K required specific legislative measures to adopt the Central Goods and Services Tax (CGST) and Integrated Goods and Services Tax (IGST) laws. The state legislature passed the Jammu and Kashmir Goods and Services Tax Act, 2017 (Act No. V of 2017) on July 7, 2017, with the law coming into effect on July 8, 2017.
Over the past eight years, GST has significantly reshaped J&K’s economic landscape, aligning it with the national market and fostering growth in several areas. In the year 2017-18, only 72000 dealers were registered under GST in the entire Jammu and Kashmir. However, currently over 2,20 lakh dealers are registered with the department, out of which 114475 dealers are registered Jammu division, which only 80403 are active.
In the Jammu division, 8276 new taxpayers registered with the department in the year 2024-25 due to a massive outreach awareness and campaign.
The revenue growth also shows promising progress as the estimated monthly revenue collection of Jammu and Kashmir was around 200 crores, with a collection of Rs 2402.22 in the year 2017-18. The monthly revenue of Jammu and Kashmir has now risen to Rs 723 crores with the collection of Rs 8673.81 GST in the year 2024-25, which is a trend that has continued with improvements in tax collection efficiency.
The GST also provided Economic Integration of J&K into India’s unified tax regime, reducing tax barriers and enabling seamless trade with other states. The removal of multiple indirect taxes has simplified compliance for businesses, allowing them to claim input tax credits and reduce the tax burden on final products.
The introduction of GST Suvidha Kendras and e-way bill systems has further enhanced compliance efficiency. The State Taxes Department, supported by the National Informatics Centre, has developed digital platforms to assist taxpayers in filing returns and obtaining registrations.
As J&K marks eight years of GST, the focus is on further enhancing compliance, expanding the tax base and leveraging technology. The State Taxes Department’s ongoing efforts to improve digital infrastructure, coupled with initiatives like GST Suvidha Kendras, aim to make tax administration more accessible.
The region’s transition to Union Territory status has also opened opportunities for deeper integration with national economic policies, potentially attracting more investment.
On completing 8 years of GST in J&K, Commissioner State Taxes, P K Bhat, commended the efforts of officers and officials of the department for their dedication, resilience, and innovative spirit to ensure smooth tax administration in Jammu and Kashmir, ensuring robust revenue collection while fostering a taxpayer-friendly environment.
He said that with teamwork, we have made significant strides in enhancing compliance, streamlining processes and leveraging technology to improve efficiency. The adoption of advanced data analytics, coupled with rigorous enforcement measures, has led to an increase in tax revenue, contributing to the socio-economic development of our Union Territory.
He further said our focus will be on achieving sustainable growth in revenue while ensuring ease of compliance for taxpayers. He urged that team to embrace the opportunities ahead with renewed vigour and determination.
In her message, Additional Commissioner of Administration and Enforcement, Jammu, Namrita Dogra, said that the State Taxes Department remains committed to its mission of enhancing compliance, improving service delivery and fostering transparency in the tax ecosystem. She said actions included targeted scrutiny of ITC claims, detection of fraudulent transactions, and a crackdown on fake GST registrations, all of which strengthened fiscal controls.
Raina, Additional Commissioner State Taxes Adm & Enforcement Kashmir, Parveez Ahmad in his message extended heartfelt gratitude to all taxpayers, stakeholders, and department officials for their unwavering support in this transformative journey. “GST has streamlined taxation, boosted economic integration, and fostered transparency in our region. Let us continue to work together to ensure compliance and drive growth for a prosperous J&K”, he said.
