The Gross GST collection of the state has registered collections of ₹13,971 crore, a rise in the rate of 22.35%, during the first half of the financial year (April–September).
It is an effective rise compared to ₹11,418 crore GST collected in the same period last year, Finance Minister Harpal Singh Cheema cited.
“Over the first six months of this financial year, the state has recorded a gross GST revenue growth of ₹2,553 crore as compared to the corresponding period last year,” Cheema expressed.
The GST of the state has surged year on year from 5% in the first half of FY 2024–25 to an impressive 22.35% in FY 2025–26, he cited.
“This figure far exceeds the national GST growth rate of around 6%, 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%, while the Punjab state development tax (PSDT) registered a growth of 11% during September 2025 compared to the same month last year,” the finance minister stated.
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The Finance Minister cited that the GST revision impacts the performance of Punjab, much robust compared to the national average. He also mentioned that “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 ₹2,140.82 crore, up from ₹1,943 crore in September 2024, marking an increase of ₹197.82 crore and a growth rate of 10%, an improvement compared to the modest 5% growth seen in the same period last year.”
Minister Harpal Singh Cheema attributed the success to the Punjab government’s devotion to curbing tax evasion, making the state’s fiscal position robust. According to the minister, the taxation department strengthened its enforcement actions against tax evasion from April to September 2025.
₹246 crore of ineligible input tax credit (ITC) was blocked across 1,162 taxpayers in this duration. Against bogus networks, along with scams of ₹500 crore in Ludhiana and ₹550 crore in Fatehgarh, four major FIRs were lodged.
“Penalty collections from road checking and inspections by the state intelligence and preventive units (SIPUs) surged sharply, rising from ₹106.36 crore in April–September 2024 to ₹355.72 crore in April–September 2025,” the minister cited. He also added that “This increase of ₹249.36 crore reflects a remarkable 134% growth in enforcement-driven collections.”
