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 year 2017-18, only 72000 dealers were registered under GST in 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 only with 80403 are active.
In Jammu division, 8276 new taxpayers registered with the department in year 2024-25 due to massive outreach awareness and campaign.
The revenue growth also shown a promising progress as the estimated monthly revenue collection of Jammu and Kashmir was around 200 crores with collection of Rs 2402.22 in year 2017-18. The monthly revenue of Jammu and Kashmir is now raised to Rs 723 crores with collection of Rs 8673.81 GST in 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 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 vigor and determination.
In her message, Additional Commissioner Administration and Enforcement Jammu, Namrita Dogra said that 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 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.
GST reshaped India’s economic landscape: PM
By: IANS
New Delhi, July 1: Prime Minister Narendra Modi on Tuesday said that eight years have passed since GST was introduced, and it stands out as a landmark reform that has reshaped India’s economic landscape.
“By reducing the compliance burden, it has greatly improved the Ease of Doing Business, particularly for small and medium enterprises”, PM Modi stated.
“GST has also served as a powerful engine for economic growth, while fostering true cooperative federalism by making states equal partners in this journey to integrate India’s market,” the Prime Minister said in a statement on X.
PM Modi had called GST “a path-breaking legislation for New India” at the launch on July 1, 2017. Eight years on, the numbers speak for themselves with GST collections soaring to a record Rs 22.08 lakh crore in 2024-25, marking a year-on-year growth of 9.4 per cent. The number of taxpayers has more than doubled from 60 lakh to over 1.51 crore under the GST regime.
The average monthly collection stood at Rs 1.84 lakh crore in 2024-25, a blockbuster year. In 2020–21, the total collection was Rs 11.37 lakh crore, with a monthly average of Rs 95,000 crore. The following year, it rose to Rs 14.83 lakh crore, and then to Rs 18.08 lakh crore in 2022–23. In 2023–24, GST collections reached Rs 20.18 lakh crore, showing consistent growth in compliance and economic activity.
The One-Nation One-Tax made tax compliance easier, reduced costs for businesses, and allowed goods to move freely across states. It brought together a wide range of indirect taxes under one umbrella by replacing levies like excise duty, service tax, VAT and others. This helped remove the cascading effect of taxes and brought consistency in the tax system across the country.
According to a Deloitte survey, 85 per cent of taxpayers have reported “a positive experience with GST” and view it as a more simplified and transparent tax process that facilitated the ease of doing business. This marks the fourth year in a row where sentiment has improved.
GST is seen as a consumer-friendly reform that has resulted in the removal of multiple taxes and improved compliance, and the average tax rates have come down. Goods like cereals, edible oils, sugar, snacks and sweets now carry lower tax rates. A study by the Finance Ministry noted that GST helped households save at least four per cent on monthly expenses in total. Consumers now spend less on daily necessities.
GST has also transformed the logistics industry. Long queues of trucks at state borders and corruption-prone checkpoints have become a thing of the past. Goods now move faster and more freely across state lines.
Transport time has improved by over 33 per cent, according to several studies. Companies have cut down on fuel costs, and major highways are less congested.
