Jammu and Kashmir has achieved significant success in revenue augmentation through a series of strategic reforms, resulting in a 13% year-over-year increase in tax collections.
According to the Economic Survey, tax revenues rose from Rs 12,335.47 crores in FY23 to Rs 13,903.22 crores in FY24.
The positive trend has continued into the current fiscal year, with Rs 10,624.09 crores already collected by the end of Q3 FY25, representing 76% of the previous year’s total collection. This puts the UT on track to exceed last year’s revenue figures.
The Goods and Services Tax (GST) has emerged as the primary revenue generator, contributing Rs 6,527.62 crores, or 61% of the tax revenue realised in the first three-quarters of FY25. Other significant revenue sources include excise duty (14%), sales tax (12%), vehicle tax (6.5%), and stamps and land registration (4.9%).
One of the most notable achievements has been the substantial expansion of the GST dealer base. Official data indicates that dealer registrations under GST have grown from 115,894 in 2019-20 to 216,033 by January 2025, representing an 86% increase over five years.
More importantly, active registrations have more than doubled during this period, rising from approximately 72,000 in 2019-20 to 151,288 by January 2025. This expansion reflects both improved compliance and the formalization of previously unregistered businesses, according to economic survey report.
To combat GST evasion and ensure compliance, the UT government has implemented several technological and procedural innovations, including mechanisms for tracking GST deductions on capital works, risk-based e-way bill verification systems, and scrutiny of red-flag cases using inputs from the Business Intelligence Unit (BIU) and the GST Network (GSTN).
These measures have contributed to an 8.5% growth in GST collections, with total collections expected to reach Rs 8,700 crores by the end of FY25.
The UT government has also modernized its excise administration through strengthening the e-Abgari platform to track the liquor supply chain, notifying a new excise policy, and conducting transparent auctions for liquor vend allotments. These reforms have yielded a 4% increase in excise revenue, which is projected to reach Rs 2,000 crores in the 2024-25 fiscal year, the report stated.
The introduction of an e-Stamping system has been another key component of the UT’s revenue augmentation strategy. This digital approach has streamlined land registration processes while ensuring accurate revenue collection.
“The comprehensive approach to revenue enhancement, combining technological innovation with policy reforms, has yielded substantial dividends,” said a senior finance department official who requested anonymity. “The performance in the first three quarters of the current fiscal year indicates that we are well-positioned to exceed our revenue targets.”
Economists note that the increased tax collection will provide the UT government with greater fiscal space to fund development projects and welfare schemes without excessive dependence on central grants or borrowings.
