GST Revenues in Punjab Surge 22% in First Half of FY26
Punjab’s indirect tax collections have shown a remarkable growth with GST revenues recording double-digit growth in the first half of FY26. The state’s focus on enforcement and compliance has been a key driver of this performance.
The essential points for the Punjab GST collection in the first half of FY 26 are as follows:
- Strong GST Growth: The Punjab finance minister, Harpal Singh Seema, stated that the state GST collections in Punjab rose to ₹13,971 crore during April–September 2025, up 22.35% from ₹11,418 crore in the same period last year, reversing the modest 5% growth seen in H1 FY25.
- Other Indirect Taxes: VAT and central sales tax collections grew by 10%, while Punjab State Development Tax (PSDT) increased by 11% in September 2025 compared to the previous year.
- Monthly Performance: September 2025 GST collections alone reached ₹2,140.82 crore, up ₹197.82 crore from September 2024, demonstrating consistent double-digit growth.
- Enhanced Enforcement: The state blocked ₹246 crore of ineligible Input Tax Credit (ITC) for 1,162 taxpayers, filed four major FIRs against large fraud networks, and raised penalty collections from ₹106.36 crore to ₹355.72 crore—a 134% increase.
- GST Rationalisation Resilience: While many states reported negative growth in September, Punjab outperformed the national average, reflecting strong compliance and effective tax administration.
Conclusion
Punjab’s robust GST performance in H1 FY26 highlights the impact of strategic enforcement and efficient administration. With gains across other indirect taxes and strong enforcement-driven collections, the state is well-positioned to sustain its fiscal momentum in the coming months.
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