Punjab Records 24.45% Surge in GST Collections, Outpaces National SGST Growth : Harpal Singh Cheema

Punjab Newsline | Chandigarh

Punjab has recorded a robust 24.45% growth in Goods and Services Tax (GST) collections during the first quarter of the financial year 2026-27, reflecting improved tax compliance, sustained economic activity, and a technology-driven governance model, Punjab Finance, Excise and Taxation Minister Harpal Singh Cheema said on Wednesday.

According to the Finance Minister, the state's gross GST collections increased to ₹7,833.45 crore during April-June FY27, compared to ₹6,294.57 crore in the corresponding period last year, registering an increase of ₹1,538.88 crore.

Cheema highlighted that Punjab also recorded an exceptional 9% growth in State GST (SGST) cash collections, which is three times higher than the national average of 3%. He attributed the performance to stronger tax compliance, sustained economic growth, and ongoing administrative reforms in the Excise and Taxation Department.

"The increase of over ₹1,538 crore in GST collections, along with ₹242 crore growth in VAT/CST collections, demonstrates the effectiveness of the state's revenue mobilisation strategy and the strengthening of Punjab's fiscal position," the minister said.

₹1,270 Crore GST Refunds Released

To support businesses and improve market liquidity, the Punjab government disbursed ₹1,270 crore in GST refunds during the first quarter, including ₹713.70 crore under the State GST (SGST) component.

Cheema said timely refunds, transparent administration, and simplified procedures remain central to the government's efforts to facilitate honest taxpayers and improve the ease of doing business.

Strict Action Against Tax Evasion

The Finance Minister reiterated the government's zero-tolerance policy towards tax evasion, stating that enforcement drives resulted in the recovery of ₹633 crore in penalties during the first quarter—an increase of 207% over the ₹207 crore recovered during the same period last year.

In June 2026 alone, the department imposed ₹225 crore in penalties and registered 20 FIRs against fake taxpayers involved in bogus invoicing and fraudulent GST registrations.

Additionally, the Excise and Taxation Department conducted property auctions to recover long-pending VAT dues, collecting approximately ₹14 crore in arrears.

Cheema said the government would continue to strike a balance between strict enforcement against tax evasion and facilitating compliant taxpayers through efficient services and timely refunds, ensuring greater transparency and stronger public revenue protection.