J&K collects ₹3,248 Cr in sales tax over two years, targets ₹409 Cr arrears

Srinagar, Apr 09: The Jammu and Kashmir Government recorded sales tax collections of ₹1,605.89 Crore in 2023–24 and ₹1,642.55 crore in 2024–25 under the Motor Spirit and Diesel Oil Taxation Act.
Meanwhile, 2,527 defaulters owe a total of ₹409.31 crore, including ₹179.39 crore in tax, ₹193.30 crore in interest, and ₹36.62 crore in penalties.
The data was shared in a written reply to the Legislative Assembly to a question of MLA R.S Pathania, which revealed an extensive recovery drive involving 3,556 notices, 790 property attachment notices, and 762 arrest warrants issued to enforce compliance.
In the official response, the government said that sales tax is currently collected under the Jammu and Kashmir (Motor Spirit and Diesel Oil) (Taxation on Sales) Act, SVT 2005 (1948 A.D.), which covers Petrol, Diesel, Aviation Turbine Fuel (ATF), and Natural Gas. The collections under this Act stood at ₹1605.89 crore in 2023–24 and ₹1642.55 crore in 2024–25.
“It was further clarified that no active sales tax is being levied under the J&K General Sales Tax Act, 1962 on any commodities. The figures under this Act pertains solely to the recovery of pending arrears from past assessments.”
Responding to a supplementary question, it said as of now, 2,527 dealers are in default, with a total outstanding amount of ₹409.31 crore, which includes ₹179.39 crore in principal tax, ₹193.30 crore in interest, and ₹36.62 crore in penalties.
“Despite repeated notices, several defaulters have failed to clear their dues. The department has launched a vigorous enforcement campaign to recover the pending amounts and ensure better compliance.”
It further said that so far, the Recovery Wings of the department have issued 3,556 notices, 790 attachment notices for movable and immovable property and bank accounts, 408 formal attachment orders, and 762 warrants of arrest under the provisions of the Jammu and Kashmir Land Revenue Act.
Further the House was informed that the recovery process is being monitored at multiple levels. Additional Commissioners and Deputy Commissioners of Recovery are overseeing efforts at the divisional level, while the UT-level Commissioner is supervising overall compliance and enforcement.
“It reiterated its resolve to pursue arrears, strengthen monitoring, and enhance accountability in the sales tax recovery mechanism across Jammu and Kashmir,” the government said in its reply.