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Punjab Registers 20% Growth in Gross GST Revenue, Touching ₹10,447 Crore in FY 2026–27

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Chandigarh: Punjab Finance, and Excise and Taxation Minister Advocate Harpal Singh Cheema on Saturday announced that driven by improved tax compliance, intelligence-led enforcement, and technology-backed administration the Excise and Taxation Department has recorded a robust 20% growth in Gross GST revenue during the first four months of the current financial year, accumulating ₹10,447.9 crore compared to ₹8,708.48 crore in the previous year.

Revealing this in a press communique issued here, the Finance Minister Harpal Singh Cheema said, “For July 2026 alone, the state registered a Gross GST collection of ₹2,614.45 crore, reflecting an 8.31% year-on-year increase alongside a national high SGST cash growth exceeding 16.23%, backed by severe crackdowns on bogus billing networks and strict recovery of legacy tax arrears.”

Attributing the fiscal achievements directly to the department’s structured roadmap, Punjab Finance, the Excise and Taxation Minister Harpal Singh Cheema said that the state has continued its strong revenue performance during the current financial year by registering healthy growth in GST collections through improved tax compliance, intelligence-based enforcement, and technology-driven administration. He said, “During July 2026, Punjab recorded a Gross GST Collection of ₹2,614.45 crore, as against ₹2,413.91 crore during July 2025, registering an increase of ₹200.54 crore (8.31%). A significant highlight of the month’s performance has been the growth in SGST Cash Collection, which increased from ₹815.84 crore in July 2025 to ₹948.29 crore in July 2026, registering an increase of ₹132.45 crore (16.23%).”

Highlighting the growth in SGST, the Finance Minister said, “Punjab has recorded SGST Cash growth of more than 16.23%, amongst the highest in the country. The increase in SGST cash receipts is a key indicator of improved voluntary compliance and actual tax payments by businesses operating in the State.”

Elaborating on the sustained momentum across the financial period, Minister Harpal Cheema said that the State has also maintained robust revenue growth during the first four months of the financial year. “During April–July 2026, Punjab recorded a Gross GST Collection of ₹10,447.9 crore, as against ₹8,708.48 crore during the corresponding period of the previous year, registering an increase of ₹1,739.42 crore (20%),” he added.

Underlining the state’s taxpayer-centric initiatives, the Finance Minister remarked, “Reaffirming its commitment towards promoting ease of doing business and supporting compliant taxpayers, the Punjab Government has ensured timely sanction and disbursement of legitimate GST refunds. During July 2026, GST refunds amounting to more than ₹200 crore were sanctioned. This demonstrates the Government’s policy of facilitating honest taxpayers by ensuring prompt release of legitimate refunds while maintaining strict vigilance against fraudulent claims. The Government remains committed to providing a transparent, predictable and taxpayer-friendly tax administration that encourages voluntary compliance and strengthens business confidence.”

The Excise and Taxation Minister Cheema also outlined the stern enforcement measures taken against tax evaders. He said “The Department has significantly intensified enforcement activities against tax evasion and fraudulent practices. During July 2026 alone, enforcement actions undertaken across the State resulted in the imposition of penalties exceeding ₹200 crore. The Department adopted an intelligence-based approach by utilising data analytics and risk profiling to detect tax evasion and fake Input Tax Credit networks. In one of the major enforcement actions during the month, an FIR was registered at Jalandhar in connection with a bogus billing scam involving transactions of approximately ₹55.35 crore, and the principal accused was arrested under the provisions of the Punjab GST Act.”

Addressing measures taken to prevent registration misuse and collect older dues, the Minister Cheema added, “The Department has also undertaken a focused campaign against fraudulent registrations obtained by misusing the provisions of Rule 14A. As a result of extensive verification and field enquiries, more than 100 GST registrations have been cancelled, thereby curbing the misuse of the GST registration framework and preventing fraudulent availment and passing of Input Tax Credit.” He said that special emphasis has also been laid on recovery of long-pending VAT arrears. “Through attachment and auction of properties belonging to chronic VAT defaulters, the Department has recovered ₹12.39 crore during the current financial year. The recovery drive will continue against all defaulting dealers in accordance with law to safeguard Government revenue”, said Cheema.

Reaffirming the Punjab Government’s dual approach to revenue mobilization, the Finance Minister Harpal Singh Cheema said, “Punjab’s encouraging GST performance is the result of a balanced strategy based on taxpayer facilitation, technology-driven administration and firm enforcement against tax evasion. While the Government is ensuring prompt sanction of legitimate refunds to honest taxpayers to improve liquidity and promote ease of doing business, it has adopted a zero-tolerance policy against fake billing, fraudulent registrations and tax fraud. The significant growth in SGST cash collections, sustained increase in overall GST revenue, recovery of legacy VAT arrears, cancellation of fraudulent GST registrations and strong enforcement actions undertaken during July clearly demonstrate the State Government’s commitment towards protecting public revenue and creating a fair and transparent tax environment.”

Giving a call to all taxpayers to remain fully compliant, while assuring every genuine taxpayer of complete facilitation and support from the Department, the Finance Minister Cheema said, “The Excise and Taxation Department shall continue to strengthen compliance through advanced analytics, targeted enforcement, digital governance and taxpayer-centric initiatives with the objective of enhancing revenue mobilisation while ensuring transparency, accountability and ease of doing business in the State of Punjab.”

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