Jammu, Aug 2: Jammu and Kashmir has registered a zero percent growth in the Goods and Services Tax (GST) revenue collection for July 2022 as compared to the same month in 2021.
The Union Territory has recorded a slump of Rs 1 crore in its revenue collection in the previous month when compared to the same period during the last year.
Ironically, this happened when the Union Finance Ministry posted its statistics displaying a very high buoyant growth of 35 percent in GST revenue till July 2022 over the same period last year.
According to these statistics, Rs 1,48,995 crore gross GST revenue has been collected in July 2022. This GST revenue collection for July is the second highest ever and 28 percent higher than the revenues in the same month last year.
Out of Rs 1,48,995 crore, Rs 25,751 crore is CGST; Rs 32,807 crore is SGST and IGST is Rs 79,518 crore (including Rs 41,420 crore collected on import of goods) and cess is Rs 10,920 crore (including Rs 995 crore collected on import of goods).
However, as per the statistics shared by the Union Ministry of Finance vis-a-vis State/UT-wise growth of GST revenues during July 2022 as compared to July 2021 on Monday, J&K has collected Rs 432 crore in the previous month i.e., July, with a zero percent growth. As this figure was Rs 431 crore in July 2021.
Generally, the slump is perceived as an indication of the economy going into recession due to a contraction in consumption. However, there may be other reasons as well.
While J&K has recorded static growth, its twin Union Territory Ladakh has registered 54 percent growth in GST revenue collection in July 2022. Ladakh has collected Rs 20 crore in July 2022, against Rs 13 crore in July 2021.
It (Ladakh) shared the second slot along with Puducherry and (unspecified) Other Territory in the list of States and the Union Territories with only Lakshadweep ahead of them by registering 69 per cent growth.
J&K’s neighbouring state Himachal Pradesh achieved 12 percent growth in GST revenue collection by settling at Rs 746 crore in July 2022 against Rs 667 crore during the same period last year.
Another hilly state Uttarakhand achieved 26 percent growth with Rs 1390 crore GST revenue collection in the previous month against Rs 1106 crore in July 2021.
Behind J&K, there are only three States and UTs i.e., Bihar (-1 percent), Tripura (-3 percent) and Daman & Diu (-66 percent) GST revenue collection growth.
The Union Finance ministry statement said that the government has settled Rs 32,365 cr to CGST and Rs 26,774 cr to SGST from IGST. The total revenue of the Centre and the States in July 2022 after the regular settlement is Rs 58,116 cr for CGST and Rs 59,581 cr for the SGST.
“The revenues for July 2022 are 28 percent higher than the GST revenues in the same month last year of Rs 1,16,393 cr. During the month, revenues from import of goods were 48 percent higher and the revenues from domestic transactions (including import of services) are 22 percent higher than the revenues from these sources during the same month last year,” it added.
As per the statement, for five months in a row now, the monthly GST revenues have been more than Rs 1.4 lakh crore, showing a steady increase every month.
“The growth in GST revenue till July 2022 over the same period last year is 35 percent and displays a very high buoyancy. This is a clear impact of various measures taken by the GST Council in the past to ensure better compliance. Better reporting coupled with economic recovery has been having a positive impact on the GST revenues consistently. During June 2022, 7.45 cr e-way bills were generated, which was marginally higher than 7.36 cr in May 2022,” it mentioned.