Tax Net Widens: J&K's GST base expands threefold to 2 lakh dealers in 2024

Srinagar, Aug 13: The Union Territory of Jammu & Kashmir has reported substantial growth in tax revenue collection and a dramatic increase in GST registrations, according to recent government data.

The number of dealer registrations under GST has seen a remarkable surge, expanding from approximately 72,000 in 2018-19 to over 200,000 in 2023-24. This nearly threefold increase reflects a significant formalization of the economy and a broadening of the tax base.

According to the official document, the UT government has invested in capacity building for taxation staff, collaborating with the Institute of Chartered Accountants to support this growth. Additionally, new mechanisms have been implemented to track purchases and stem GST leakages. In a move to improve tax realization from capital works, GSTN verification has been linked with the bill payment system.

"The introduction of a new excise policy has brought transparency to the allotment of liquor vends through a system of auctions. This, coupled with the implementation of an e-stamping system for document registration, has led to a significant boost in revenue. Stamps and registration revenues have more than tripled, rising from Rs190 crore in 2018-19 to Rs 678 crore in 2023-24."

"The e-Abgari platform is being strengthened to enhance tracking of the supply chain and further increase excise revenue. These measures have contributed to healthy growth in revenue from GST, Excise, and Stamps."

Specific revenue figures for the 2023-24 fiscal year (up to December 2023) show impressive growth. GST collection reached Rs 6,018 crore, a 10.60% increase over the same period in 2022-23. Motor spirit taxes generated Rs 1,240 crore, up from Rs 1,185 crore in the previous year. Stamp revenue increased to Rs 416 crore, showing 9.7% growth, while excise collection touched Rs 1,758 crore, registering a substantial 26% growth. The implementation of the e-stamping system has been particularly successful, with stamp and registration revenues rising from Rs 190 crore in 2018-19 to Rs 486 crore in 2022-23.

These figures demonstrate the effectiveness of the UT government's efforts to streamline tax collection, increase transparency, and broaden the tax base. The substantial growth in revenue collection across various sectors indicates a positive trend in Jammu & Kashmir's economic development and fiscal management.