The registration of dealers under the Goods and Services Tax (GST) regime has witnessed a remarkable surge in Jammu and Kashmir over the past five years, according to official data.
From approximately 72,000 GST-registered dealers in 2018, the number has surged to 1,97,000 in 2023, representing a staggering expansion of over 170% in the GST dealer base within the Union Territory during this period. This significant rise underscores the increased participation of businesses from J&K in the nationwide indirect tax system.
The widening GST dealer base is anticipated to enhance tax compliance within the UT, with analysts suggesting that the addition of over 1.25 lakh GST-registered dealers reflects positively on industry sentiment and the perception of GST among businesses in the region.
A senior official from the State Taxes Department highlighted that the burgeoning GST dealer base bodes well for Jammu and Kashmir and is expected to bolster GST revenues for the UT administration.
According to official documents, revenue collection under the Goods and Services Tax reached Rs 6018 crore in 2023-24 (up to December 2023), showcasing a growth rate of 10.60% over the corresponding period in 2022-23. Similarly, revenue from motor spirit taxes climbed to Rs 1240 crore in 2023-24 (till December 2023), compared to Rs 1185 crore in the same period of 2022-23.
Stamp revenue also saw an uptick, reaching Rs 416 crore up to December 2023, compared to Rs 379 crore during 2022-23, marking a growth of 9.7%. Furthermore, excise collection surged to Rs 1758 crore by December 2023, up from Rs 1392 crore in the same period of 2022-23, representing a growth rate of 26%.
The implementation of the e-stamping system for document registration, establishment of a transparent system for liquor vend allotment, and strengthening of the e-Abgari platform for supply chain tracking have been cited as contributing factors to the healthy growth in revenue from GST, excise, and stamps, according to J&K government officials.
QUOTE: The burgeoning GST dealer base bodes well for J&K and is expected to bolster GST revenues for the UT administration