Punjab Finance, Excise and Taxation Minister Advocate Harpal Singh Cheema on Wednesday said that the state has registered robust 24.45% growth in GST (Goods and Services Tax) collections for First Quarter of FY 2026-27, paired with the strategic disbursal of ₹1,270 crore in GST refunds to boost business liquidity, reflecting a thriving economy built on taxpayer trust and a robust, technology-driven administration.
Announcing the stellar first-quarter performance for FY 2026–27 in a press communique, Finance Minister Harpal Singh Cheema said, "The gross GST collections climbed to ₹7,833.45 crore, backed by an exceptional 9% SGST cash growth that tripled the national average of 3%, all while rigorous enforcement measures recovered ₹633 crore in penalties to firmly protect public revenue."
Highlighting that the total GST collection of ₹7,833.45 crore stands against ₹6,294.57 crore collected during the corresponding period of the previous financial year, marking a gross increase of ₹1,538.88 crore, the Finance Minister attributed this success to sustained economic activity, improved tax compliance, and ongoing administrative reforms within the Excise and Taxation Department.
He said, “The growth of over ₹1,538 crore in GST and ₹242 crore in VAT/CST collections demonstrates the effectiveness of the state's revenue mobilization strategy and the clear strengthening of Punjab's fiscal position.” Emphasising a policy of zero tolerance towards tax evasion, Minister Harpal Singh Cheema pointed out that the department's intensive enforcement drive has yielded substantial results.
He shared, "During the first quarter, penalties amounting to approximately ₹633 crore were imposed and recovered, representing a staggering 207% increase over the ₹207 crore recovered during the same period last fiscal year". Detailing the specific actions taken in June 2026 alone, the Excise and Taxation Minister added, "The penalties amounting to ₹225 crore were imposed, and 20 First Information Reports (FIRs) were registered against bogus taxpayers involved in fake invoicing and fraudulent registrations".
Furthermore, the department conducted property auction proceedings during the month to expedite the recovery of long-pending dues under the VAT regime, which successfully brought in approximately ₹14 crore in arrears. Reaffirming the Bhagwant Mann government's commitment to supporting genuine businesses, Minister Harpal Singh Cheema said, "Out of the total ₹1,270 crore disbursed in timely GST refunds to improve market liquidity and promote the ease of doing business, the State GST (SGST) component alone accounted for ₹713.70 crore".
He emphasised, “Strict enforcement goes hand-in-hand with taxpayer facilitation and these enforcement actions underscore an unwavering commitment to protecting public revenue. The Excise and Taxation department remains equally dedicated to facilitating honest taxpayers through timely refunds, simplified procedures, and transparent administration, and this balanced approach will continue to guide the department's efforts in the coming months.”