Punjab has recorded a record breaking 44.44 percent growth in Net GST collections for June 2025 and a substantial 27.01 percent growth for the first quarter of Fiscal Year (FY) 2025-26, marking the highest-ever GST revenue growth in a fiscal quarter and for the month of June in the state's history. Punjab Finance, Planning, Excise and Taxation Minister Advocate Harpal Singh Cheema revealed this while addressing a press conference after facilitating the top five taxpayers of the state for their exemplary contribution to the state's economic growth and revenue generation, including Ashu Agnihotri from Ambuja Cement, Sanjay Malhotra from HPCL-Mittal Energy Limited (HMEL), Chaman Lal Sharma from Samsung India Pvt Ltd, Ankush Sharma from Tata Steel and Nitin Dada from Dada Motors.
The Minister acknowledged their contributions and emphasized the importance of responsible tax practices in achieving inclusive development and fiscal sustainability. Finance Minister Cheema accompanied by Secretary Taxation Ajit Balaji Joshi and Excise and Taxation Commissioner Jitendra Jorwal highlighted that Punjab has outpaced the national average in GST growth, firmly positioning itself among the top-performing states in tax mobilization despite facing national and geopolitical challenges, including border-related tensions.
The Net GST collection for June 2025 stood at Rs 2379.90 crore, reflecting a remarkable revenue growth of Rs 732.21 crore over the Rs 1647.69 crore collected in June 2024. This follows monthly net growth trends of 15.35 percent in April and 24.59 percent in May.
The net GST collection during the first quarter of FY 2025-26 reached Rs 6,830.40 crore, even amidst the conflict between India and Pakistan in May 2025, compared to Rs 5,377.75 crore in the first quarter of 2024-25. This represents a growth rate more than four times the 6.41 percent growth rate registered during the first quarter of FY 2024-25.
The Finance Minister also launched a scathing attack on the previous SAD-BJP and Congress-led governments, citing their failure to check tax evasion and improve the state's fiscal health. He asserted that the Chief Minister Bhagwant Singh Mann-led Punjab Government has ensured consistent month-on-month and year-on-year growth.
He noted a GST collection growth rate of 16.25 percent in FY 2022-23, 15.51 percent in FY 2023-24, and 12.84 percent in FY 2024-25, registering a total collection of Rs 62,733 crore in three years. In contrast, during the Congress regime from FY 2018-19 to FY 2021-22, the state merely collected Rs 55,146 crore.
Similarly, during the SAD-BJP regime, the state witnessed only 4.57 percent and 2.67 percent growth in VAT and CST collection during FY 2014-15 and FY 2015-16, respectively. "The AAP Government has already collected more in three years than the Congress Government collected in its entire five years", said Harpal Singh Cheema.
The Finance Minister further stated that the previous Congress-led state government heavily relied on compensation amounting to Rs 30,070 crore without any future plan for state revenues. "On the contrary, we enhanced field enforcement, targeted data-driven inspections, and improved taxpayer compliance to reduce tax evasion and safeguard the state's financial stability," he added.
Revealing details of recent enforcement activities, the Finance Minister highlighted that the State Intelligence & Preventive Unit (SIPU) uncovered a GST fraud syndicate run by an accountant who created and operated 20 fake firms for bogus billing and ITC fraud. Preliminary investigations have uncovered fraudulent transactions amounting to Rs 866.67 crore, leading to an estimated tax evasion of Rs 157.22 crore.
Additionally, the department uncovered a massive GST evasion scam involving M/s Maa Durga Roadlines, a Chandigarh-based firm registered as a transporter, for its involvement in bogus e-way bill generation and transportation of unaccounted goods amounting to Rs 168 crores, involving a cumulative tax liability of Rs 30.66 crores.
Replying to a media query, the Finance Minister said that the state has to make interest payments of Rs 25,000 crore and principal payments of Rs 18,200 crore on legacy debt availed by the previous SAD-BJP and Congress led state governments in FY 2025-26, while planning to borrow Rs 49,900 crore, despite Rs. 13,000 crore in deductions by the Government of India.
He stated that the state government plans to borrow Rs 8,500 crore to meet the redemption obligations of over Rs 3,500 crore for legacy debt in the second quarter of the current financial year alone. Finance Minister Harpal Singh Cheema concluded by stating that Punjab's fiscal management is on a strong footing, with the state government taking proactive steps to manage its debt obligations.
He highlighted that the Punjab Government recently invested Rs 1,000 crore each in the Guarantee Redemption Fund (GRF) and Consolidated Sinking Fund (CSF), with the latter now exceeding Rs 10,000 crore, a significant increase from Rs 3,000 crore when the current government took office.