Fazila Jan
Srinagar, Dec 2
Jammu & Kashmir’s already–flagging consumption economy is showing deeper stress, with Goods and Services Tax (GST) collections registering yet another decline in November—signalling what industry players describe as a prolonged business slump and weak sales cycle across sectors.
According to official data, J&K recorded ₹677 crore in GST revenue in November 2025, a sharp 14% fall compared to ₹789 crore collected in November 2024. The dip marks the second consecutive monthly decline and adds to concerns that demand has not recovered ahead of winter, a period when economic activity usually picks up.
Back-to-Back Declines Point to Weak Market Sentiment
The latest figures follow a significant drop in October, when GST collections fell to ₹551 crore, down 9% from ₹608 crore in October last year.
The downturn, officials say, is part of a pattern that began as early as May 2025. That month saw GST receipts nosedive to ₹422 crore, collapsing by more than ₹360 crore compared to April’s ₹789 crore collection.
Economists say these recurring declines indicate persistent weak sales, lower consumption, and subdued wholesale activity across the region.
Businesses Report Prolonged Slowdown
Traders and business bodies attribute the fall to a combination of factors—reduced consumer spending, high input costs, supply-chain disruptions earlier in the year, and an overall dip in retail footfall. Many also point to tightening liquidity among small and medium enterprises, which form the backbone of J&K’s trading economy.
A leading Kashmir-based trader said November’s numbers confirm what markets have been experiencing for months:
“Sales are slow, inventory is stuck, and customers are buying only essentials. The GST decline is simply a reflection of the ground reality.”
Industry Bodies Flag Distress
Commercial associations warn that if the downward trend continues through the next quarter, several small businesses may struggle to stay afloat. Some sectors—particularly textiles, electronics, and construction-related goods—have reported double-digit drops in monthly turnover since early summer.
Government Reviewing Trends
Officials from the Finance Department said the administration is closely monitoring the slide in revenues and is assessing whether corrective measures or targeted interventions are needed to revive market activity.
For now, however, the data paints a clear picture: J&K’s economy is grappling with a sustained fall in consumption, and the latest GST collections confirm that the business slump is far from over.
