Punjab records all-time high GST revenue growth in June: FM Cheema

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The North News

Chandigarh, July 1

Punjab has recorded its highest-ever growth in GST revenue, with collections in June 2025 surging by 44.44% year-on-year, and a 27.01% increase for the first quarter of the 2025–26 fiscal year.  Finance Minister Advocate Harpal Singh Cheema revealed the figures during a press conference in Chandigarh, where he also honoured the state’s top five taxpayers for their contribution to Punjab’s economic performance. The recognised firms included Ambuja Cement, HPCL-Mittal Energy, Samsung India, Tata Steel, and Dada Motors.

The state’s net GST collection for June 2025 stood at ₹2,379.90 crore, up from ₹1,647.69 crore in June 2024. The April and May growth rates were 15.35% and 24.59%, respectively. The total GST collection for the April–June quarter reached ₹6,830.40 crore, despite geopolitical tensions, including the May 2025 India–Pakistan conflict.

Cheema highlighted that Punjab’s tax revenue performance has outpaced the national average and attributed this to enhanced enforcement, data-driven inspections, and improved compliance under the Bhagwant Mann-led AAP government. He sharply criticised the previous SAD-BJP and Congress-led governments, accusing them of failing to curb tax evasion and improve fiscal health. “We’ have collected ₹62,733 crore in GST over three years—more than what the Congress collected in its five-year term,” said Cheema.

He also pointed to past reliance on central compensation, noting that the Congress government had received ₹30,070 crore in GST compensation without establishing a self-sustaining revenue model. Addressing enforcement, Cheema disclosed that Punjab’s State Intelligence & Preventive Unit (SIPU) unearthed a GST fraud syndicate involving 20 fake firms, led by an accountant, with fake transactions worth ₹866.67 crore and tax evasion pegged at ₹157.22 crore. Another case involved Maa Durga Roadlines, a transporter based in Chandigarh, linked to bogus e-way bills and unaccounted goods worth ₹168 crore, with a tax liability of ₹30.66 crore.

Responding to questions on debt, Cheema revealed that Punjab faces ₹43,200 crore in interest and principal repayments on legacy debt in FY 2025–26. Despite a ₹13,000 crore deduction by the Union Government, Punjab plans to borrow ₹49,900 crore this fiscal year, including ₹8,500 crore in the second quarter alone.

Cheema concluded by affirming that Punjab’s fiscal management has strengthened, noting fresh investments of ₹1,000 crore each in the Guarantee Redemption Fund and the Consolidated Sinking Fund, which has now grown to over ₹10,000 crore from just ₹3,000 crore three years ago.