Chandigarh, June 1: Punjab has recorded a significant rise in Goods and Services Tax (GST) collections during May 2026, reflecting strong economic activity and improved tax compliance across the state. Punjab Finance, Excise and Taxation Minister Harpal Singh Cheema said the state registered a 14.59 percent growth in GST revenue compared to the same month last year.
According to the Finance Minister, Punjab’s gross GST collection for May 2026 stood at ₹2,400.52 crore, which is ₹305.71 crore higher than the ₹2,094.81 crore collected during May 2025. He said the growth highlights the state’s strengthening revenue base and the effectiveness of measures taken by the Excise and Taxation Department.
Punjab Outperforms National GST Growth
Harpal Singh Cheema said Punjab’s GST performance has remained significantly ahead of the national trend. He stated that while the country’s overall GST revenue growth was around 3.2 percent during the corresponding period, Punjab recorded a much stronger growth rate of 14.59 percent.
The Finance Minister said the state’s cash collection growth stood at 6.57 percent, while gross GST collections witnessed a much higher increase. He attributed the improvement to better compliance by taxpayers, stronger monitoring mechanisms and effective tax administration.
Enforcement Drives Lead to Major Recoveries
Highlighting enforcement achievements, Cheema said the State Intelligence and Preventive Units (SIPUs) imposed penalties worth ₹182.69 crore and recovered ₹178.76 crore during May 2026. He said these recoveries were made through data analytics, intelligence-based investigations, verification drives and coordinated field operations conducted across Punjab.
The minister also revealed that the Taxation Department uncovered a fake billing racket involving transactions worth ₹85.4 crore. During the operation, officials arrested the director of a Ludhiana-based company for allegedly claiming fraudulent Input Tax Credit (ITC) of ₹15.56 crore through bogus transactions.
According to the department, investigations found the use of fake firms, fabricated invoices, fraudulent debit notes and manipulated transport records to carry out tax fraud. Authorities also recovered nearly ₹3 crore from beneficiaries allegedly linked to the network.
Government Reiterates Zero-Tolerance Policy
Harpal Singh Cheema said the Punjab Government, led by Chief Minister Bhagwant Singh Mann, remains committed to protecting public revenue and ensuring a fair environment for honest taxpayers. He said the government is using advanced data analytics, e-way bill monitoring, FASTag verification and intelligence inputs to detect tax evasion.
The Finance Minister reiterated the government’s zero-tolerance policy against fake billing and organised tax fraud. He added that the Excise and Taxation Department will continue to balance taxpayer facilitation with strict monitoring and enforcement to safeguard the state’s revenue interests.
