Srinagar, Dec 1: The decline in Goods and Services Tax (GST) collections for Jammu & Kashmir, have registered a further back-to-back decline logging a fall by 14 per cent. In terms of a year-on-year comparison, J&K witnessed Rs 677 crore GST collections in November, 2025 which is a sizeable decrease compared to Rs 789 crore GST revenue in November, 2024.
In October this year, J&K’s Goods and Services Tax collections dropped to Rs 551 crore, a considerable 9 per cent decrease from Rs 608 crore during the same month last year.
The first nosedive in GST collections was recorded in May this year, which saw a steep fall, slipping to Rs 422 crore, a drop of over Rs 360 crore compared to April’s Rs 789 crore mop-up.
Notably, all-India Goods and Services Tax collections slipped to a year-low of Rs 1.70 lakh crore in November, 2025 growing at a meagre 0.7 per cent year-on-year on a base lowered by the exclusion of proceeds from cess on sin and luxury goods, the official data released on Monday showed.
Government officials have attributed the fall in GST collections in J&K to an overall subdued economic sentiment and a tepid trade and commerce activity, especially in sectors such as tourism and retail.
A senior central government official, wishing anonymity, told Greater Kashmir that as far all-India GST collection is concerned, “growth has especially been strong in sectors where rate rationalisation was implemented, such as FMCG, pharma, foods products, automobiles, medical devices, textiles etc.” Notably, in a FICCI event held in Srinagar during October, Chief Minister Omar Abdullah had said that the revision of rates undertaken earlier this year, was likely to reduce J&K’s overall fiscal earnings by Rs 900 to Rs 1000 crore.
Commenting on the country-wide collections trend, the government official said in the sectors, that have seen growth, taxable value of supplies has seen significantly higher growth, confirming that lower GST rates translated directly into higher consumer spending.
“This growth is in value terms. Since GST rates were lower, the growth in volume terms will be even higher. It is clearly visible that while the Next Gen Reforms resulted in increased consumption, industry has been very proactive in passing on of the GST savings to the final consumers and ensuring that there is no supply side deficiency,” he said.
However, he highlighted that as we move closer to the new financial year, the year-on-year margin in fall of GST collections in J&K is seen its widening.
Pertinently, in September this year, GST collections in J&K touched Rs 699 crore from Rs 599 crore in September 2024, while as the tax mop-up had reached Rs 582 crore in August 2025, a modest 2 per cent rise from Rs 569 crore in the same month last year.
As the Centre has been upbeat about the GST reforms, the government official said that following the implementation of the reforms, the impact of these measures is clearly visible in the all-India data. “Taxable value of all supplies under GST grew by 15 per cent during the 2-month period of September–October 2025, compared to the same period in 2024. Growth in the same period last year was 8.6%. He said this surge in taxable value demonstrates strong consumption uplift, stimulated by reduced rates and improved compliance behaviour. “It vindicates the Centres strategy that reducing rates on essentials and mass-use sectors would create demand-side buoyancy – a Laffer Curve–type demand uplift. These trends confirm that GST Next-Gen Reforms have not disrupted revenue stability, and that consumption-side buoyancy has begun to translate into higher taxable value in key sectors,” he added.
