PUNJAB ACHIEVES REMARKABLE 22.35% GST GROWTH IN 1ST HALF OF FY 25-26: HARPAL SINGH CHEEMA

PUNJAB ACHIEVES REMARKABLE 22.35% GST GROWTH IN 1ST HALF OF FY 25-26: HARPAL SINGH CHEEMA

STATE REGISTERS GROSS GST COLLECTIONS OF RS 13,971 CRORE DURING APRIL–SEPTEMBER 2025

SAYS, STATE OUTPERFORMS NATIONAL AVERAGE AMID ECONOMIC HEADWINDS

Chandigarh, October 2

Highlighting the remarkable success of the state’s Taxation department, Punjab Finance, Planning, Excise and Taxation Minister, Advocate Harpal Singh Cheema, on Thursday announced that the state registered gross GST collections of Rs 13,971 crore during the first half of the financial year (April–September 2025), a substantial increase compared to Rs 11,418 crore collected in the same period last year, reflecting a significant growth rate of 22.35 percent.

Revealing this in a press communique issued here, the Finance Minister Harpal Singh Cheema said that over the first six months of this financial year, state has recorded a Gross GST revenue growth of Rs 2,553 crore as compared to the corresponding period last year. He said that state’s year-on-year GST growth rate has risen dramatically from just 5 percent in first half of FY 2024–25 to an impressive 22.35 percent in FY 2025–26. He said that this figure far exceeds the national GST growth rate of around 6 percent, unequivocally underscoring the success of Punjab’s revenue mobilisation efforts. “In addition to GST, Punjab has also shown encouraging results in other indirect tax categories. Collections under VAT and CST increased by 10 percent, while the Punjab State Development Tax (PSDT) registered a growth of 11 percent during September 2025 compared to the same month last year”, said Cheema.

Mentioning the impact of recent GST rationalization, the Finance Minister said that Punjab’s performance has proven to be much stronger than the national average. “While most other states recorded negative growth trends in September 2025, Punjab continued to show resilience and reported double-digit growth. In September 2025 alone, the State collected Es 2,140.82 crore, up from Rs 1,943 crore in September 2024, marking an increase of Rs 197.82 crore and a growth rate of 10 percent, a sharp improvement compared to the modest 5 percent growth seen in the same period last year”, he added.

Attributing the success to the Punjab Government’s unwavering commitment to curb tax evasion and strengthen the State’s financial position, the Excise and Taxation Minister said that the Taxation Department significantly intensified its enforcement actions against tax evasion from April to September 2025. During this period, Rs 246 crore of ineligible Input Tax Credit (ITC) was blocked across 1,162 taxpayers. Furthermore, four major FIRs were lodged against fraudulent networks, including scams of Rs 500 crore in Ludhiana and Rs 550 crore in Fatehgarh. “Penalty collections from road checking and inspections by the State Intelligence and Preventive Units (SIPUs) surged sharply, rising from Rs 106.36 crore in April–September 2024 to Rs 355.72 crore in April–September 2025”, said the Minister while adding, “This increase of Rs 249.36 crore reflects a remarkable 134 percent growth in enforcement-driven collections.”

Appreciating the dedicated efforts of the Taxation Department, whose rigorous enforcement drives and reform measures have been instrumental in achieving this outstanding performance, positioning Punjab as one of the leading states in GST growth, the Finance Minister highlighted that this achievement is particularly noteworthy given the challenging economic environment. “Punjab successfully navigated a war-like situation in May 2025 that disrupted business and trade, faced additional hurdles from the tariff impact on exports, and contended with weak consumer demand that slowed down retail transactions during mid-August and September”, said Cheema while adding that the state not only sustained revenue growth but also achieved record-breaking results despite these adverse factors.