Punjab registered a record 44.44 per cent growth in net goods and services tax collections at Rs 2,379.90 crore in June 2025, said Finance Minister Harpal Singh Cheema on Tuesday.
Addressing the media here, Cheema said Punjab outpaced the national average in GST collection growth, firmly positioning itself among the top-performing states in tax mobilization despite facing national and geopolitical challenges, including border-related tensions.
The net GST collection last month stood at Rs 2,379.90 crore, reflecting a revenue growth of Rs 732.21 crore over the Rs 1,647.69 crore collected in June 2024.
This follows the monthly net growth trends of 15.35 per cent in April and 24.59 per cent in May.
The net GST collection during the first quarter of 2025-26 reached Rs 6,830.40 crore, even amidst the military conflict between India and Pakistan in May, compared to Rs 5,377.75 crore in the first quarter of 2024-25.
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This represents a growth rate more than four times the 6.41 per cent growth rate registered during the first quarter of 2024-25.
Cheema was accompanied by Secretary (Taxation) Ajit Balaji Joshi and Excise and Taxation Commissioner Jitendra Jorwal.
On this occasion, Cheema facilitated top five taxpayers of the state for their contribution to the state's economic growth.
Cheema also hit out at the previous SAD-BJP and Congress-led governments, citing their "failure" to check tax evasion and improve the state's fiscal health.
He asserted that the 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 per cent in 2022-23, 15.51 per cent in 2023-24, and 12.84 per cent in 2024-25, registering a total collection of Rs 62,733 crore in three years.
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In contrast, during the Congress regime from 2018-19 to 2021-22, the state merely collected Rs 55,146 crore.
Similarly, during the SAD-BJP regime, the state witnessed only 4.57 per cent and 2.67 per cent growth in tax collections during 2014-15 and 2015-16, respectively.
"The AAP government has already collected more in three years than the Congress government collected in its entire five years," said Cheema.
The finance minister further stated that the previous Congress-led state government heavily relied on compensation amounting to Rs 30,070 crore without any future plan for state revenues.
"On the contrary, we enhanced field enforcement, targeted data-driven inspections, and improved taxpayer compliance to reduce tax evasion and safeguard the state's financial stability," he added.
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 Rs 866.67 crore, leading to a tax evasion of Rs 157.22 crore.
Additionally, the department uncovered a massive GST evasion involving a Chandigarh-based firm registered as a transporter for its involvement in bogus e-way bill generation and transportation of unaccounted goods amounting to Rs 168 crore, involving a cumulative tax liability of Rs 30.66 crore.
Replying to a query on taking more debt, the finance minister said the state has to make an interest payments of Rs 25,000 crore and principal payments of Rs 18,200 crore on legacy debt, availed by the previous SAD-BJP and Congress led state governments, in 2025-26, while planning to borrow Rs 49,900 crore, despite Rs 13,000 crore in deductions by the Government of India.
He stated that the state government plans to borrow Rs 8,500 crore to meet the redemption obligations of over Rs 3,500 crore for legacy debt in the second quarter of the current financial year alone.
Cheema said 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 Rs 1,000 crore each in the Guarantee Redemption Fund (GRF) and Consolidated Sinking Fund (CSF), with the latter now exceeding Rs 10,000 crore, a significant increase from Rs 3,000 crore when the current government took office.
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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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