Nikhil Khajuria
The Goods and Services Tax (GST) implementation in India marked a significant milestone in the country’s economic reforms. Launched on July 1, 2017, GST aimed to simplify the complex tax structure and establish a unified tax regime across the nation. Jammu and Kashmir’s integration with the GST regime was unique due to its erstwhile special constitutional status. The state was initially granted certain exemptions and allowed to implement its own tax regime.
However, on July 8, 2017, the Jammu and Kashmir Legislative Assembly passed the Jammu and Kashmir Goods and Services Tax Act, formally aligning the state with the GST framework.The GST implementation in Jammu and Kashmir has steadily evolved, contributing to the state’s economic growth and development. As businesses and the government continue to adapt to the new tax regime, further reforms and enhancements are expected to enhance the efficiency and effectiveness of GST in the state.
The GST in Jammu and Kashmir did not have an easy time implementing because there were so many obstacles.The transition to the GST regime presented some teething issues, including technological glitches and the need for businesses to adapt to the new tax framework. The government took proactive measures to address these challenges, such as extending deadlines and providing extensive support through training and awareness programs. The erstwhile state also faced unique challenges due to its geographical location and political situation. The government introduced specific measures to address these concerns, including provisions for refunds and incentives to promote industrial growth in the region.
So far, the journey of GST in Jammu and Kashmir has been nothing short of remarkable, bringing numerous benefits to the state in a significant way. Since its implementation, GST has revolutionized the tax landscape, simplifying the taxation system and fostering economic growth.
The unified tax regime has replaced multiple indirect taxes, eliminating the complexities associated with the previous tax structure.
This has led to a more efficient and transparent tax system, reducing compliance burdens for businesses and promoting a conducive environment for economic activities.The implementation of GST has also resulted in increased revenue generation for the UT of J&K. By expanding the tax base and enhancing tax collection mechanisms, GST has helped Jammu and Kashmir strengthen its financial position.
The SGST revenue realisation in J&K for 2022-23 amounted to Rs 7300 crores and is projected to reach Rs 10000 crores for the current financial year. The centralized system has minimized tax evasion and improved the efficiency of tax collection, leading to a boost in revenue for the state government.Furthermore, GST has played a vital role in facilitating interstate trade. The removal of barriers and the introduction of the Integrated Goods and Services Tax (IGST) have streamlined the movement of goods and services between the UT of Jammu and Kashmir and other states. This has not only enhanced market access for businesses but has also stimulated economic growth by promoting a more seamless flow of trade and commerce.
Looking ahead, the future of GST in Jammu and Kashmir appears promising. As businesses and the government continue to adapt to the new tax regime, further reforms and enhancements are expected to be implemented. This will further improve the efficiency and effectiveness of GST, ensuring sustained economic growth and development for the state.
(The writer is Academician and Research Scholar Udhampur Campus, University of Jammu).
