Chandigarh, October 2 – Punjab has emerged as one of the top-performing states in Goods and Services Tax (GST) collections, registering a remarkable 22.35 percent growth in the first half of the financial year 2025–26, significantly surpassing the national average growth rate. Finance, Planning, Excise and Taxation Minister Advocate Harpal Singh Cheema announced that Punjab recorded gross GST collections of ₹13,971 crore during April–September 2025, up from ₹11,418 crore in the same period last year, reflecting an impressive increase of ₹2,553 crore.
The Finance Minister underlined that the state’s GST growth rate has surged dramatically compared to just 5 percent in the first half of FY 2024–25. He said this outstanding performance underscores Punjab’s effective revenue mobilization strategy, which has kept the state ahead of most other regions despite economic challenges. In comparison, the national GST growth rate during this period stood at around 6 percent.
Apart from GST, Punjab has also reported strong growth in other indirect tax segments. Collections under VAT and CST rose by 10 percent, while the Punjab State Development Tax (PSDT) registered an 11 percent increase in September 2025 compared to the same month last year. In September alone, Punjab collected ₹2,140.82 crore in GST revenues, marking a 10 percent growth from ₹1,943 crore in September 2024—an impressive recovery compared to the modest 5 percent growth seen during the same period last year.
Cheema attributed the success to the government’s relentless drive against tax evasion and strengthening financial accountability. From April to September 2025, enforcement actions by the Taxation Department led to the blocking of ₹246 crore of ineligible Input Tax Credit (ITC) across 1,162 taxpayers. Additionally, four major FIRs were lodged against fraudulent tax networks, including scams worth ₹500 crore in Ludhiana and ₹550 crore in Fatehgarh. The Finance Minister revealed that penalty collections from road checking and inspections conducted by the State Intelligence and Preventive Units (SIPUs) surged from ₹106.36 crore in April–September 2024 to ₹355.72 crore in the same period this year, reflecting a record 134 percent growth.
Appreciating the dedicated efforts of the Taxation Department, Cheema said the robust enforcement drives, coupled with policy reforms, have been instrumental in achieving this exceptional performance, even in the face of tough economic headwinds. He noted that Punjab faced multiple challenges during the past six months, including a war-like situation in May 2025 that disrupted trade, tariff-related setbacks to exports, and subdued consumer demand that slowed down retail transactions in mid-August and September. Despite these adversities, Punjab not only sustained momentum but also set a new benchmark in GST revenue growth.
“Punjab has proven its resilience by combining strict enforcement, efficient tax administration, and proactive governance. This remarkable growth in GST collections reaffirms the state’s commitment to fiscal discipline and economic stability,” said Cheema, adding that the state will continue its efforts to strengthen its revenue base while ensuring transparency and accountability.
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