Jammu & Kashmir sees 3x rise in GST taxpayers: What it means
Jammu & Kashmir has marked 8 years since the rollout of Goods and Services Tax (GST) with a remarkable milestone—a threefold increase in the number of registered taxpayers. This sharp rise highlights the growing formalisation of trade in the region and showcases the success of GST implementation post-2017.
Let’s break down what this means for businesses, consultants, and the broader economy.
Keyphrase Focus: GST growth in J&K
GST growth in J&K: The Numbers Behind the Surge
According to official data from the J&K GST Department and CBIC:
- 2017: ~72,000 registered taxpayers at GST launch
- 2024: Over 2.1 lakh active GST taxpayers
- Growth: Nearly 3x rise in just 8 years
- Collections: Monthly GST revenue has crossed ₹1,500 crore in 2024 (including SGST + IGST share)
The surge is not just in numbers—compliance, digital adoption, and invoicing behaviour have also improved across sectors.
What Enabled This Transformation?
The increase in GST registration and revenue in J&K is backed by:
- Simplified GST registration via Aadhaar authentication
- GST Suvidha Kendras and helpdesks launched across districts
- Infra push: Digitisation of tax admin, road and logistics upgrades
- Inclusion of small traders through QRMP and composition schemes
- Post-Article 370 reforms that ensured full GSTN integration with national systems
🧾 CBDT & CBIC jointly enhanced backend connectivity and refund processing mechanisms in the UT, especially post-2020.
Legal and Policy Anchors
- Article 370 abrogation (2019) led to full integration of CGST & SGST Acts in J&K
- State GST Act of J&K was aligned with national framework post-2019
- Notification No. 2/2017–SGST (Jammu and Kashmir) laid the original legal framework
- Regular compliance drives and GST audit enforcement contributed to widening the tax net
Expert Insight: Why This Matters
“The taxpayer surge in J&K is not just a number—it reflects confidence in the system. As compliance improves, businesses get better access to credit, and states receive more fiscal space to invest in infrastructure,” says CA Rohit Sethi, GST advisor at Efiletax.
Business Impact in J&K
| Aspect | 2017 | 2024 |
|---|---|---|
| GST Registered Taxpayers | ~72,000 | 2.1+ lakh |
| Filing Compliance Rate | Below 60% | Above 85% |
| Refund Timelines | Avg 120+ days | Within 45 days |
| MSME Formalisation | Minimal | Widespread under QRMP/Composition |
Practical Tips for New Businesses in J&K
If you’re registering under GST in J&K:
- Use Aadhaar-based OTP verification for instant approval
- Choose Composition Scheme if turnover < ₹1.5 crore
- Claim input tax credit only after supplier uploads invoice (GSTR-1 vs 2B match)
- File GSTR-3B monthly or quarterly (QRMP), depending on your scheme
- Use E-Invoice if turnover exceeds ₹5 crore
Related Resource
Read our blog on 👉 QRMP Scheme Benefits for Small Businesses
FAQ: GST Growth in J&K
Q1: Is GST registration now mandatory in J&K for small traders?
Yes, if your turnover crosses ₹20 lakh (₹10 lakh in some cases), registration is mandatory. Composition is available for eligible small traders.
Q2: Are J&K businesses eligible for input tax credit (ITC)?
Absolutely. Once registered, all provisions of ITC under CGST and SGST apply equally to J&K.
Q3: Has GST compliance improved in rural J&K?
Yes, thanks to GST facilitation centres, helplines, and mobile-based filing support.
Final Word
The GST growth in J&K proves that tax reforms work when digital infrastructure, legal clarity, and outreach align. Whether you’re a local trader, CA, or startup, this shift opens up more opportunities for formal finance, expansion, and trust-building.
Want help with GST registration or filing in J&K or beyond?
👉 Get started with Efiletax now
Summary
GST growth in J&K has tripled the taxpayer base in just 8 years. From 72,000 in 2017 to over 2.1 lakh in 2024, this surge reflects post-Article 370 reforms, better compliance, and digital push. Learn how it impacts businesses and registration norms in the UT.