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Punjab registered a 44.44% growth in net Goods and Services Tax (GST) collections in June 2025, reaching INR 2,379.90 crore, as stated by Finance Minister Harpal Singh Cheema. This places Punjab above the national average in growth. The state's net GST collection for Q1 FY26 reached INR 6,830.40 crore, achieved despite ongoing military conflict. Cheema also highlighted increased field enforcement, leading to the uncovering of two major GST fraud cases involving over INR 180 crore in tax evasion. The report also detailed the state's efforts to manage legacy debt amidst rising fiscal obligations.
Punjab Finance Minister Harpal Singh Cheema has announced a record increase in the state's net Goods and Services Tax (GST) collections for June 2025. This development, with data released on Tuesday, reflects robust tax mobilization efforts across Punjab, as the state achieved a significant percentage growth in monthly collections. Advertisement
Punjab registered a 44.44% growth in net GST collections in June 2025, reaching INR 2,379.90 crore. This figure reflects a revenue growth of INR 732.21 crore compared to INR 1,647.69 crore collected in June 2024.
Cheema stated that Punjab outpaced the national average in GST collection growth, positioning itself among the top-performing states in tax mobilization despite facing national and geopolitical challenges, including border-related tensions. This follows monthly net growth trends of 15.35% in April and 24.59% in May. The net GST collection during the first quarter of 2025-26 reached INR 6,830.40 crore which was achieved during the military conflict between India and Pakistan in May. This compares to INR 5,377.75 crore in the first quarter of 2024-25, representing a growth rate of 6.41% that is four times more than the registered collections during the first quarter of 2024-25.
Cheema, accompanied by Secretary (Taxation) Ajit Balaji Joshi and Excise and Taxation Commissioner Jitendra Jorwal, claimed that the current Bhagwant Singh Mann-led government has ensured consistent month-on-month and year-on-year growth. He noted a GST collection growth rate of 16.25% in 2022-23, 15.51% in 2023-24, and 12.84% in 2024-25, registering a total collection of INR 62,733 crore in three years. He contrasted this with the previous Congress regime from 2018-19 to 2021-22, which collected INR 55,146 crore, and stated that his government has already collected more in three years than the Congress government collected in its entire five years.
He further stated that the previous Congress-led state government relied heavily on compensation amounting to INR 30,070 crore without any future plan for state revenues. He emphasized that his government enhanced field enforcement, targeted data-driven inspections, and improved taxpayer compliance to reduce tax evasion and safeguard the state's financial stability.
On this occasion, Cheema also facilitated the top five taxpayers of the state for their contribution. Revealing details of recent enforcement activities, the minister highlighted that the State Intelligence and Preventive Unit (SIPU) uncovered a GST fraud syndicate run by an accountant who created and operated 20 fake firms for bogus billing and ITC fraud. Preliminary investigations uncovered fraudulent transactions amounting to INR 866.67 crore, leading to a tax evasion of INR 157.22 crore.
Additionally, the department uncovered a large GST evasion involving a Chandigarh-based firm registered as a transporter. This firm was allegedly involved in bogus e-way bill generation and transportation of unaccounted goods amounting to INR 168 crore, with a cumulative tax liability of INR 30.66 crore.
Replying to a query on taking more debt, the finance minister stated that the state has to make interest payments of INR 25,000 crore and principal payments of INR 18,200 crore on legacy debt, availed by the previous SAD-BJP and Congress-led state governments, in 2025-26. He added that the state plans to borrow INR 49,900 crore, despite INR 13,000 crore in deductions by the Government of India. He also stated that the state government plans to borrow INR 8,500 crore to meet the redemption obligations of over INR 3,500 crore for legacy debt in the second quarter of the current financial year alone.
Cheema stated that Punjab's fiscal management is on a strong footing, with the state government taking proactive steps to manage its debt obligations. He highlighted that the Punjab government recently invested INR 1,000 crore each in the Guarantee Redemption Fund (GRF) and Consolidated Sinking Fund (CSF), with the latter now exceeding INR 10,000 crore, a notable increase from INR 3,000 crore when the current government took office.
Source: PTI
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