Impact of strong financial management: Punjab government major increase in GST

June 30, 2026

Punjab’s economic strength and improved financial management are clearly visible in the state’s revenue figures. Finance, Excise and Taxation Minister, Advocate Harpal Singh Cheema, informed that the state’s total GST collections during May 2026 registered a significant increase of 14.59 percent.

During this period, Punjab’s GST collections increased to ₹2,400.52 crore, an increase of ₹305.71 crore compared to ₹2,094.81 crore collected in May 2025. The government believes that this increase is a positive outcome of the expansion of economic activities in the state, improved tax compliance, and effective financial management.

The Finance Minister emphasized that this impressive growth is a result of sustained economic activity, improved tax compliance, and effective enforcement measures by the Excise and Taxation Department.

Giving details in a press statement, Finance Minister Harpal Singh Cheema stated that Punjab’s GST collections have increased by 14.59 percent. The performance has been impressive compared to national trends, significantly exceeding the country’s total GST revenue growth of approximately 3.2 percent compared to the same month last year.

He said, “While Punjab’s cash collection growth was 6.57 percent, the state’s overall GST growth reached a high of 14.59 percent, reflecting the strengthening of the state’s revenue base, improved tax compliance levels, and highly effective tax administration measures.”

Elaborating on enforcement achievements, Finance Minister Cheema said, “State Intelligence and Preventive Units (SIPUs) across Punjab have achieved impressive results by imposing penalties of Rs 182.69 crore and recovering Rs 178.76 crore during May 2026 alone.” He explained that these significant recoveries were made possible by extensive data analytics, intelligence-based investigations, dedicated verification campaigns, and coordinated field operations across the state.

Announcing a major success against tax evasion, Finance Minister Cheema said, “The Punjab Tax Department has successfully busted a fake billing racket worth Rs 85.4 crore during May 2026 and arrested the director of a Ludhiana-based firm for allegedly obtaining fraudulent input tax credit (ITC) worth Rs 15.56 crore through bogus transactions.”

He said that the CIPTU investigation revealed that non-existent firms, fake invoices, fake debit notes, and fabricated transportation records were used to commit the tax fraud. As part of this action, the director of the firm was arrested under the Punjab Goods and Services Tax Act, and approximately Rs 3 crore has been recovered from the beneficiaries of this fraud.

Concluding his press statement, Finance Minister Harpal Singh Cheema reiterated that the Punjab Government led by Chief Minister Bhagwant Singh Mann is fully committed to protecting government revenues and providing a level playing field to honest taxpayers by utilizing advanced data analytics, meticulous scrutiny of e-way bills, FASTag verification and confidential information.

The Finance Minister reiterated the government’s strict ‘zero-tolerance’ policy against fake billing and organized tax evasion networks and pledged that the Excise and Taxation Department will continue to protect the interests of genuine taxpayers through a balanced approach of assistance, strict monitoring and uncompromising enforcement.