Punjab Achieves Record GST Growth, Outpaces National Average

In a significant boost to its fiscal health, Punjab has registered a record 25.31 per cent growth in net GST collection for May 2025, outpacing the national average and establishing itself as one of the top-performing states in tax mobilization.

The state's net GST revenue rose to ₹2,006.31 crore in May 2025, up from ₹1,601.14 crore in May 2024, showing a remarkable increase of ₹405.17 crore.

Punjab Finance Minister Harpal Singh Cheema attributed the impressive growth to strong tax administration, enhanced compliance, and a resilient economic environment fostered under the leadership of Chief Minister Bhagwant Singh Mann.

"This achievement is a testament to our government's commitment to financial prudence and economic reform," Cheema said.

The minister pointed out that the state's GST growth rate had more than tripled the corresponding growth of 8.17 per cent in May 2024.

The Taxation Department's efforts to curb tax evasion, improve field-level enforcement, and enable a seamless taxation framework have contributed significantly to this growth, Cheema said.

The department's actions included the physical verification of 195 bogus firms, leading to the blocking of ₹75.79 crore in fraudulent Input Tax Credit (ITC), and the detection of major tax evasion in the coal sector, involving off-book transactions exceeding ₹225 crore and ₹11.65 crore in evaded tax.

The department also uncovered ₹900 crore in bogus gold bullion transactions in Ludhiana, with ₹21 crore of ineligible ITC blocked.

Cheema applauded the efforts of the Taxation Department's officers and field staff for their dedication and impactful enforcement.

This additional revenue, Cheema said, would provide further strength to the state government's development initiatives and enhance public service delivery.