STATE REGISTERS GROSS GST COLLECTIONS OF RS 13,971 CRORE DURING APRIL–SEPTEMBER 2025
Chandigarh, October 2 : Highlighting the remarkable success of the state’s Taxation department, Punjab Finance, Planning, Excise and Taxation Minister, Advocate Harpal Singh Cheema, on Thursday announced that the state registered gross GST collections of Rs 13,971 crore during the first half of the financial year (April–September 2025), a substantial increase compared to Rs 11,418 crore collected in the same period last year, reflecting a significant GST growth rate of 22.35 percent.
The Finance Minister Harpal Singh Cheema revealed this in a press communique issued here. He said that over the first six months of this financial year, the state has recorded a Gross GST revenue growth of Rs 2,553 crore. This compares to the corresponding period last year. He said that state’s year-on-year GST Collections rate has risen dramatically from just 5 percent in first half of FY 2024–25 to an impressive 22.35 percent in FY 2025–26.
GST Collections ; Punjab State Development Tax registered a growth of 11 percent
He said that this figure far exceeds the national GST growth rate of around 6 percent, 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 percent. The Punjab State Development Tax (PSDT) registered a growth of 11 percent. This occurred during September 2025 compared to the same month last year”, said Cheema.
The Finance Minister mentioned the impact of recent GST rationalization. He said that Punjab’s performance has proven to be much stronger than the national average. “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 Es 2,140.82 crore, up from Rs 1,943 crore in September 2024, marking an increase of Rs 197.82 crore. This represents a growth rate of 10 percent. This is a significant improvement. It compares sharply to the modest 5 percent growth seen in the same period last year”, he added.
Authorities blocked Rs 246 crore of ineligible ITC across 1,162 taxpayers
The Excise and Taxation Minister credited the success to the Punjab Government’s unwavering commitment to curb tax evasion. This commitment also strengthens the State’s financial position. He stated that the Taxation Department significantly intensified its enforcement actions against tax evasion from April to September 2025. Authorities blocked Rs 246 crore of ineligible ITC across 1,162 taxpayers during this period. They lodged four major FIRs against fraudulent networks. These included scams of Rs 500 crore in Ludhiana and Rs 550 crore in Fatehgarh. “Penalty collections from road checking and inspections by the State Intelligence and Preventive Units (SIPUs) surged sharply, rising from Rs 106.36 crore in April–September 2024 to Rs 355.72 crore in April–September 2025”, said the Minister while adding, “This increase of Rs 249.36 crore reflects a remarkable 134 percent growth in enforcement-driven collections.”
The Finance Minister expressed appreciation for the dedicated efforts of the Taxation Department. Their rigorous enforcement drives and reform measures have been instrumental in achieving this outstanding performance. This has positioned Punjab as one of the leading states in GST growth. The minister highlighted that this achievement is noteworthy given the challenging economic environment. “Punjab successfully navigated a war-like situation in May 2025 that disrupted business and trade, faced additional hurdles from the tariff impact on exports, and contended with weak consumer demand that slowed down retail transactions during mid-August and September”, said Cheema while adding that the state not only sustained revenue growth but also achieved record-breaking results despite these adverse factors.
