Punjab posts 22.35% GST surge in H1 FY26; collections hit Rs 13,971 crore: Cheema
Chandigarh, October 2, 2025: Punjab has recorded gross GST collections of Rs 13,971 crore in April–September 2025, up 22.35%22.35% from Rs 11,418 crore a year ago, outperforming the national average of around 6%6%, Finance, Planning, Excise and Taxation Minister Advocate Harpal Singh Cheema said on Thursday.
Cheema said the state’s GST revenue rose by Rs 2,553 crore over the first half of the year, with the year-on-year growth rate jumping from 5%5% in H1 FY 2024–25 to 22.35%22.35% in H1 FY 2025–26. He added that recent GST rationalisation had a positive impact, with Punjab’s performance “much stronger than the national average.”
In September 2025 alone, Punjab collected Rs 2,140.82 crore in GST, up from Rs 1,943 crore in September 2024—an increase of Rs 197.82 crore and growth of 10%10%, a sharp improvement over the modest 5%5% growth seen in the year-ago period. Beyond GST, collections under VAT and CST grew 10%10%, while Punjab State Development Tax (PSDT) rose 11%11% in September 2025 year-on-year.
Enforcement gains
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Rs 246 crore of ineligible ITC blocked across 1,162 taxpayers (April–September 2025).
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Four major FIRs filed against fraudulent networks, including alleged scams of Rs 500 crore in Ludhiana and Rs 550 crore in Fatehgarh.
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Penalty collections from road checks and SIPU inspections jumped from Rs 106.36 crore in April–September 2024 to Rs 355.72 crore in April–September 2025—an increase of Rs 249.36 crore, reflecting 134%134% growth in enforcement-driven collections.
Cheema credited rigorous enforcement and reforms by the Taxation Department for positioning Punjab among the leading states in GST growth despite headwinds. He noted the state “successfully navigated a war-like situation in May 2025 that disrupted business and trade,” tariff impacts on exports, and weak consumer demand that slowed retail transactions in mid-August and September, yet sustained momentum and delivered record results.