Punjab has recorded a record breaking 44.44 percent growth in Net GST collections for June 2025 and a substantial 27.01 percent growth for the first quarter of Fiscal Year (FY) 2025-26
Chandigarh, July 1 ; Punjab has recorded a record breaking 44.44 percent growth in Net GST collections for June 2025 and a substantial 27.01 percent growth for the first quarter of Fiscal Year (FY) 2025-26, marking the highest-ever GST revenue growth in a fiscal quarter and for the month of June in the state’s history.
Punjab Honours Top Five Taxpayers for Boosting State Revenue”
Punjab Finance, Planning, Excise and Taxation Minister Advocate Harpal Singh Cheema revealed this during a press conference. He addressed the conference after facilitating the top five taxpayers of the state. They were honored for their exemplary contribution to the state’s economic growth and revenue generation. The top taxpayers included Ashu Agnihotri from Ambuja Cement. Sanjay Malhotra is from HPCL-Mittal Energy Limited (HMEL). Chaman Lal Sharma represents Samsung India Pvt Ltd. Ankush Sharma is associated with Tata Steel. Nitin Dada comes from Dada Motors. The Minister acknowledged their contributions and emphasized the importance of responsible tax practices in achieving inclusive development and fiscal sustainability.
June revenue ; Punjab exceeded the national average in GST growth
Finance Minister Cheema, Secretary Taxation Ajit Balaji Joshi, and Excise and Taxation Commissioner Jitendra Jorwal highlighted an important achievement. They announced that Punjab has exceeded the national average in GST revenue growth. This achievement has positioned the state among the top performers in tax mobilization. They have managed this despite dealing with national and geopolitical challenges, including border-related tensions. The Net GST collection for June 2025 stood at Rs 2379.90 crore, reflecting a remarkable GST revenue growth of Rs 732.21 crore over the Rs 1647.69 crore collected in June 2024. This follows monthly net growth trends of 15.35 percent in April and 24.59 percent in May.
The net GST collection during the first quarter of FY 2025-26 reached Rs 6,830.40 crore, even amidst the conflict between India and Pakistan in May 2025, compared to Rs 5,377.75 crore in the first quarter of 2024-25. This represents a growth rate more than four times the 6.41 percent growth rate registered during the first quarter of FY 2024-25.
DRAWS A STARK CONTRAST WITH PREVIOUS SAD-BJP AND CONGRESS REGIMES
The Finance Minister also launched a scathing attack on the previous SAD-BJP and Congress-led governments. He cited their failure to check tax evasion. They also failed to improve the state’s fiscal health. He asserted that the Chief Minister Bhagwant Singh Mann-led Punjab Government has ensured consistent month-on-month and year-on-year growth. He noted a GST collection growth rate of 16.25 percent in FY 2022-23, 15.51 percent in FY 2023-24, and 12.84 percent in FY 2024-25, registering a total collection of Rs 62,733 crore in three years. In contrast,
during the Congress regime from FY 2018-19 to FY 2021-22, the state merely collected Rs 55,146 crore. Similarly, during the SAD-BJP regime, the state witnessed only 4.57 percent and 2.67 percent growth in VAT and CST collection during FY 2014-15 and FY 2015-16, respectively. “The AAP Government has collected more in just three years. This surpasses what the Congress Government collected in its entire five years”, said Harpal Singh Cheema.
The Finance Minister further stated that the previous Congress-led state government heavily relied on compensation amounting to Rs 30,070 crore. They did this without any future plan for state revenues. “On the contrary, we enhanced field enforcement. We conducted targeted data-driven inspections. We improved taxpayer compliance. These measures were to reduce tax evasion and safeguard the state’s financial stability,” he added.
“Accountant’s Fake Firms Exposed in ₹866 Cr GST Scam”
The Finance Minister revealed details of recent enforcement activities. The State Intelligence & Preventive Unit (SIPU) uncovered a GST fraud syndicate. It was run by an accountant who created and operated 20 fake firms for bogus billing and ITC fraud. Preliminary investigations have uncovered fraudulent transactions amounting to Rs 866.67 crore, leading to an estimated tax evasion of Rs 157.22 crore. Additionally, the department uncovered a massive GST evasion scam. This involved M/s Maa Durga Roadlines, a Chandigarh-based firm registered as a transporter. They were involved in bogus e-way bill generation and transportation of unaccounted goods. This amounted to Rs 168 crores. The cumulative tax liability was Rs 30.66 crores.
Replying to a media query, the Finance Minister said that the state has to make 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 FY 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.
Punjab Government recently invested Rs 1,000 crore
Finance Minister Harpal Singh Cheema concluded by stating 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 Rs 1,000 crore each in the Guarantee Redemption Fund (GRF) and the Consolidated Sinking Fund (CSF). The Consolidated Sinking Fund now exceeds Rs 10,000 crore. This is a significant increase from Rs 3,000 crore when the current government took office.
