While India’s Goods and Services Tax (GST) collections touched Rs 1.96 lakh crore in July, marking a 7.5 percent increase over the same month last year, Jammu and Kashmir registered a contrasting picture, with a 5 percent decline in collections, signalling deepening economic stress in the region.
According to official data released by the GST Council, J&K recorded Rs 599 crore in GST collection for July, down from Rs 629 crore in July 2024.
This decline positions J&K among a handful of states and union territories, including Manipur, Mizoram, and Chandigarh, that reported a year-on-year fall in collections.
The overall national trend tells a different story.
Between April and July this year, India’s gross GST revenue stood at Rs 8.18 lakh crore, up 10.7 percent from Rs 7.39 lakh crore in the same period last year.
This surge was driven by steady domestic consumption and strong import revenues.
July marked the seventh consecutive month where the country’s GST collections stayed above Rs 1.8 lakh crore, though the figure was slightly below the Rs 2.1 lakh crore monthly average seen in Q1 of FY26.
President of the Kashmir Chamber of Commerce and Industry (KCCI), attributed the decline in J&K’s tax revenue to a weakening local economy that has been under pressure for several months.
“The economic condition in Kashmir is deteriorating. The figures indicate a slowdown in business activity. Several sectors, particularly retail, trade, and services, are witnessing contraction. We have been urging the government to announce a region-specific One-Time Settlement (OTS) scheme and fiscal support, but no concrete measures have been taken yet,” he said.
The dip in tax collection follows a series of incidents that have dented business sentiment in Kashmir.
Many traders have pointed to the chilling effect caused by high-profile arrests in April related to alleged terror financing, which they say have disrupted supply chains and investor confidence.
“Business transactions have slowed, and consumer footfall has dropped. Even tourism, which usually cushions the market in peak months, hasn’t delivered this season,” said a Srinagar-based hotelier.
The national GST performance showed strong state-wise variations.
Smaller northeastern states led the growth chart with Tripura recording a 41 percent rise, followed by Meghalaya at 26 percent, Sikkim at 23 percent, and Nagaland at 22 percent.
Among major states, Madhya Pradesh, Bihar, and Andhra Pradesh posted double-digit increases.
Maharashtra, India’s top GST contributor, collected Rs 30,590 crore in July, up 6 percent year-on-year. Karnataka grew by 7 percent and Tamil Nadu 8 percent, while Gujarat recorded a more modest 3 percent rise.
On the other hand, Manipur saw the steepest 36 percent drop, followed by Mizoram at 21 percent, and J&K and Chandigarh at 5 percent each.
Despite the uneven tax growth, India’s manufacturing activity remained robust, with output in July reaching a 16-month high of 59.1 on the Purchasing Managers’ Index, signalling steady momentum in economic activity, though not uniformly distributed across the country.
Source from: https://www.greaterkashmir.com/front-page-2/business-slowdown-drags-jk-gst-below-rs-600-cr-in-july/
