J&K records 32% increase in GST revenue collection in September

Srinagar: Jammu and Kashmir has recorded a remarkable 32 percent increase in Goods and Services Tax (GST) collection for September 2023 compared to the same period in 2022.

J&K collected taxes amounting to Rs 563 crore, surpassing the collection of Rs 428 crore in September 2022. This accomplishment also puts J&K ahead of the national average, showcasing its consistent financial performance.

The Union Ministry of Finance reported that in August 2023, Jammu and Kashmir’s GST revenue stood at Rs 523 crore, compared to Rs 434 crore in August 2022.

Additionally, the region experienced an extraordinary 58 percent year-on-year growth in GST collection in June, demonstrating the union territory’s growing economic prowess.

As per the official statement, for September 2023, the nation’s gross GST revenue amounted to a staggering Rs 1,62,712 crore.

Of this total, Central GST (CGST) contributed Rs 29,818 crore, State GST (SGST) stood at Rs 37,657 crore, Integrated GST (IGST) reached Rs 83,623 crore (including Rs 41,145 crore from imports), and the Compensation Cess (cess) amounted to Rs 11,613 crore (including Rs 881 crore from imports).

It said that the government had effectively settled Rs 33,736 crore for CGST and Rs 27,578 crore for SGST from IGST.

Consequently, the combined revenue for the Centre and the States in September 2023, after the regular settlement, was recorded at Rs 63,555 crore for CGST and Rs 65,235 crore for SGST.

The noteworthy aspect of this achievement is that September 2023 GST revenues are 10 percent higher than those of the same month in the previous year.

Particularly, revenues from domestic transactions, including import of services, have surged by an impressive 14 percent when compared to the previous year.

This marks the fourth occasion in the financial year 2023-24 when the gross GST collection has crossed the Rs 1.60 lakh crore milestone.

For the first half of the financial year 2023-24, which concluded in September 2023, the gross GST collection reached Rs 9,92,508 crore, marking an 11 percent increase from the first half of FY 2022-23, which amounted to Rs 8,93,334 crore.

The average monthly gross collection for FY 2023-24 was reported as Rs 1.65 lakh crore, reflecting an 11 percent increase compared to the average monthly gross collection in the first half of FY 2022-23, which stood at Rs 1.49 lakh crore.

With the consistent growth in Goods and Services Tax (GST) collection, the State Taxes Department in J&K has set an ambitious goal of collecting Rs 10,000 crore in SGST for the current fiscal year.

If achieved, this would mark the highest-ever GST collection in the region, indicating the positive impact of government development initiatives and an influx of visitors following years of unrest and turbulence.

A representative from the State Taxes Department attributed the increased GST collection to improved law and order conditions, a positive surge in tourism, and overall economic growth.

“In the last four years, the situation has improved considerably, which is evident by the figures of GST collection. The business was worst hit when, out of 12 months, 6 months Kashmir used to remain disturbed due to law and order issues,” he said.