Jammu and Kashmir collected ₹566 crore in Goods and Services Tax (GST) during the month of June 2025, reflecting a marginal increase of 2 percent compared to ₹555 crore collected in June last year.
The data was released by the Ministry of Finance in its monthly GST revenue report. While the numbers show a positive trend, the growth is significantly lower than the national average of 4.6 percent recorded for the same period.
The GST collection for the month includes revenue from Central GST, State GST, Integrated GST, and cess.
Although the monthly numbers show a modest gain, the quarterly settlement figures reveal a worrying trend. For the April to June quarter of the financial year 2025–26, the post-settlement SGST revenue stood at ₹1,979 crore, down 12 percent from ₹2,254 crore during the same quarter last year. This means the funds that actually reach the UT’s account, including its share from IGST, have declined even though the gross monthly collection increased slightly.
When compared with other states and Union Territories, Jammu and Kashmir’s 2 percent growth appears slow. Smaller states like Tripura and Sikkim registered 18 and 15 percent growth respectively, while Ladakh’s GST revenue rose by 22 percent. Nagaland recorded the highest jump at 71 percent. Several major states also posted stronger performances, including Karnataka and Tamil Nadu, while a few like Uttar Pradesh and Punjab witnessed a decline.
Experts say that if the government wants to improve revenue in the Union Territory, it must focus on strengthening local industries, encouraging digital billing practices, and creating a more business-friendly environment. They add that the current GST numbers, though slightly better than last year, point to the need for policy-level reforms to boost the region’s tax base and economic activity.
The overall trend shows that Jammu and Kashmir is on the path to recovery, but the pace remains slow. A combination of administrative reforms, economic incentives, and greater business support will be key to seeing stronger growth in the coming quarters.
After showing stellar rise in April and May, the growth in GST revenue dropped to low single digit in June primarily due to low mop-up from domestic transactions, indicating moderation in economic activities.
The gross GST collection showed a growth of 6.2% to Rs 1.85 lakh crore in June 2025 compared to Rs 1.74 lakh crore a year ago. Gross collections from domestic transactions – which account for 75% of the monthly collections – grew by only 4.6% during the month. Collections from imports/exports rose by 11.4%, bringing some semblance of respectability. The net GST collection during the month was even worse, growing at a paltry 3.3% to Rs 1.59 lakh crore, as refunds grew by 28.5%.
The slump in June comes after two back-to-back months of over Rs 2 lakh crore collection in April and May.
Gross GST collections in May rose by 16.5% to Rs 2.01 lakh crore – only the third time since GST came into force in July 2017. In April, gross GST collections hit an all-time high of Rs 2.36 lakh crore in April 2025, 12.6% higher than the collection of Rs 2.10 lakh crore in April 2024. Net GST revenues in May showed even better buoyancy as the same increased by 20.4% to Rs 1.74 lakh crore.
Source from: https://www.greaterkashmir.com/business/jks-june-gst-collection-sees-modest-2-rise-to-566-cr/
