The government of India has collected Rs 650 crore GST in the month of September, which is the highest from the previous months, sourced from news agency Kashmir In-depth News Service (KINS) about GST Collection.
It is also the second-highest GST collection across the country from the previous month, which indicates that the business is restoring to the normal state.
GST collection in Jammu and Kashmir:
After months of downfall in the business sector triggered due to the global pandemic of Covid-19 induced lockdown, the business in J&K has started showing improvement since the previous month.
The State Taxes Department has collected Rs 564 crore in state GST (SGST cash and credit) during the month of September. With the resumption of business activities, the GST collections are showing positive growth.
The total SGST collections stood at Rs 359.84 crore, and Rs 435.39 crore for the month of August and September respectively.
The continuous increase in GST collections is a pristine indication of the growth in business activities and taxable transactions.
Similarly, the revenue collections under Motor Spirit and Diesel Oil Tax (MST) stood at Rs 141 crore for the month of October and it is expected to grow at Rs 150 crore for the month of November.
As far as the total GST cash (CGST, SGST, and IGST) growth percentage under GST is concerned, the Union Territory of J&K stood at 2nd, 3rd, and 8th in all India Ranking for the month of August, September, and October 2020.
What local people have to say:
A hotel owner Bilal Ahmad said tourism was suffering.
“This sector has been almost shut since August 5 last year. We can only make our earning once tourists visit Kashmir,” tourism is said to be the backbone of Kashmir’s economy where more than 20 percent of people depend.
In 2018, Kashmir received 3,16,434 tourists between August and December. In 2019, the number fell to 43,0,59 for an identical period.
“This indicates business operations have started in Jammu and Kashmir. Kashmir’s economy has been badly affected since August 5 last year. There was a lockdown for months with no business. Now the business has started resuming in Kashmir. But there are some sectors that are difficult to survive,” added Ahmad.
The role of government in boosting the business:
This has been made possible by the measures taken by the Government, with the announcement of an economic relief package in the month of September 2020. These steps not only helped in boosting the business but also the other ailing sectors that had suffered due to the adverse impact of Covid-19 and had a positive impact on the growth of businesses in the Union Territory.
The growth in the business activities can be estimated from the revenue growth in the month of September and October in collections of GST and MST.
The political upheavals followed by the lockdowns, economic decelerations, and fear of pandemic hit the tourism sector in a very bad way.
Similarly, the education sector also suffers badly. Around 10 lakh students were unable to attend school and college for months because of the lockdown phase.