Punjab GST collections surge 12.52% in FY 2025-26, with March 2026 showing 16.6% growth, highlighting strong fiscal reforms and compliance.

Punjab’s financial management continues to show robust growth as the state recorded a remarkable 12.52% year-on-year increase in Goods and Services Tax (GST) collections during the 2025-26 fiscal year. Finance and taxation minister Harpal Singh Cheema shared the data, highlighting the state’s fiscal resilience even amidst the central government’s GST 2.0 rollout.

The net Punjab GST revenue for FY 2025-26 stood at ₹26,601.12 crore, a significant jump from ₹23,642.08 crore in FY 2024-25, marking an absolute increase of ₹2,959.04 crore. “This strong performance reflects prudent financial governance, improved tax compliance, and a stable economic environment in Punjab,” Cheema said.

March 2026 Sees Record Growth in Punjab GST

The month of March 2026 also witnessed impressive growth in Punjab GST collections. Net revenue rose from ₹1,913.82 crore in March 2025 to ₹2,231.93 crore in March 2026, achieving a 16.6% increase and an absolute gain of ₹318.11 crore. Meanwhile, SGST cash collections alone surged by 18%, showcasing the state’s strengthened fiscal apparatus.

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Overcoming GST 2.0 Challenges

Despite the successful performance, Punjab faced challenges due to the introduction of GST 2.0. The finance minister explained that a policy-induced dip occurred in the October–December 2025 quarter, where net Punjab GST collection fell by ₹193.04 crore (-3%). Cumulatively, this phase impacted state revenue by an estimated ₹400 crore.

However, proactive government interventions restored growth in the January–March 2026 quarter. Gross collections surged by ₹564.97 crore (9%), while net Punjab GST revenue increased by ₹669.09 crore (11%), fully offsetting the previous quarter’s decline.

Strong Governance and Transparent Fiscal Policy

Harpal Singh Cheema attributed this financial turnaround to the state government’s transparent governance and robust tax enforcement measures. He emphasized that Punjab’s focus on compliance, digital tracking, and taxpayer-friendly policies continues to ensure a healthy and growing GST revenue stream.

This impressive growth in Punjab GST not only strengthens the state’s fiscal position but also sets a benchmark for other states navigating the transition to GST 2.0.

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