Chandigarh, October 2
Punjab Finance, Planning, Excise, and Taxation Minister Advocate Harpal Singh Cheema announced that the state achieved a remarkable 22.35% growth in GST collections, amassing ₹13,971 crore during April–September 2025, compared to ₹11,418 crore in the same period last year. This reflects an impressive increase of ₹2,553 crore, outpacing the national GST growth rate of approximately 6%.
In a press statement, Cheema highlighted that Punjab’s year-on-year GST growth surged from 5% in the first half of FY 2024-25 to 22.35% in FY 2025-26. Notably, in September 2025 alone, the state collected ₹2,140.82 crore, up from ₹1,943 crore in September 2024, marking a 10% growth and an increase of ₹197.82 crore. This performance stands out against the national trend, where many states reported negative growth in September. Additionally, Punjab saw a 10% rise in VAT and CST collections and an 11% increase in Punjab State Development Tax (PSDT) for September 2025 compared to the previous year.
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Cheema attributed this success to the Punjab Government’s robust measures to curb tax evasion and bolster financial stability. From April to September 2025, the Taxation Department blocked ₹246 crore in ineligible Input Tax Credit (ITC) across 1,162 taxpayers and filed four major FIRs against fraudulent networks, including scams worth ₹500 crore in Ludhiana and ₹550 crore in Fatehgarh. Enforcement efforts also led to a 134% surge in penalty collections from road checks and inspections by State Intelligence and Preventive Units (SIPUs), rising from ₹106.36 crore in April–September 2024 to ₹355.72 crore in 2025, an increase of ₹249.36 crore.
The Finance Minister praised the Taxation Department’s rigorous enforcement and reform measures, which positioned Punjab as a leader in GST growth despite economic challenges. These included a war-like situation in May 2025 that disrupted trade, tariff impacts on exports, and weak consumer demand affecting retail transactions in mid-August and September. “Punjab’s resilience in achieving record-breaking revenue growth amidst these adversities is a testament to our commitment to financial discipline and effective governance,” Cheema said.
