Punjab News: Despite revenue challenges stemming from the Government of India’s rationalisation of GST 2.0 rates, Punjab registered a significant increase in GST collections in January 2026, reflecting improved compliance, focused enforcement, and sustained economic activity.
Disclosing this information, Finance, Excise and Taxation Minister Harpal Singh Cheema said that a total of ₹2452.66 crore GST was collected in the state during January 2026, while net GST collections registered a year-on-year growth of ₹315 crore, a 15.7 per cent increase compared to January 2025.
Strong enforcement drives Punjab’s GST, SGST collections beyond National average
Mr Cheema said that this achievement is significant as Punjab faced a revenue loss of approximately ₹250 crore every month due to the GST 2.0 rate cut, which affected key sectors such as yarn, textiles, hosiery, pharmaceuticals, insurance, tyres, and cement. Despite this loss, the state not only compensated for the revenue impact but also achieved a growth rate higher than the national trend through sustained administrative and enforcement efforts.
Providing further details, the Minister said that on a year-on-year basis (as of January 2026), the net GST collection rate has increased by 13.4 percent, resulting in an increase in total GST collected from ₹19,415 crore to ₹22,014 crore. The overall GST collection rate also registered a growth of 13.0 percent during the same period, reflecting the resilience of the tax base in Punjab.
He informed that exceptional performance was also recorded in terms of SGST cash collection in January 2026, with an increase of 14.4 percent, the highest growth rate among all states in India during this month. This rate is significantly higher than the national average of around 6 percent, making Punjab a leader across India.
Punjab strengthens taxpayer-friendly GST administration
The Minister further stated that the State Government is also paying special attention to taxpayer convenience. During January 2026 alone, SGST refunds worth ₹129 crore were issued, while the total GST refunded for the month is approximately ₹300 crore. Ensuring timely and regular refunds and achieving widespread revenue collection reflects a mature, transparent, and taxpayer-friendly tax administration.
The Cabinet Minister stated that enforcement actions have also yielded significant results. The State Intelligence and Preventive Units (SIPUs) have surpassed ₹200 crore in January 2026 by preventing ITC evasion and curbing fake billing through street checks, inspections, and verifications. Additionally, the total enforcement recovery during the current financial year is close to ₹1,000 crore, the highest ever, clearly demonstrating swift and data-driven action against tax evasion.
The Minister stated that in addition to the challenges related to GST 2.0, Punjab has faced further financial pressure due to the unilateral deduction of approximately ₹280 crore from IGST settlements by the Central Government over the past three months. Despite this, Punjab has maintained a strong growth trajectory, reflecting its robust GST management and compliance ecosystem.
Policy constraints overcome through Data-Driven GST Management
He stated that despite rate rationalisation, sector-specific revenue reductions, and IGST settlement-related deductions, Punjab has successfully protected its revenue base and achieved a growth rate much higher than the national average. He stated that this performance demonstrates that institutional and policy-based revenue constraints can be effectively addressed through better analysis, targeted enforcement, voluntary compliance, and an efficient administrative structure.
Mr Harpal Singh Cheema further stated that the Tax Department is fully committed to ensuring a fair, transparent, and technology-driven tax management framework that safeguards the state’s revenues, facilitates ease of doing business, and ensures timely refunds for compliant taxpayers.
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