Punjab Records 21.51% Growth in Net GST Collections (April-October)

Punjab Records 21.51% Growth in Net GST Collections (April-October)

Issue: To assess the revenue performance of Punjab’s Goods and Services Tax (GST) collections for the first seven months of the fiscal year (FY 2025-26), noting its growth trajectory despite challenges like widespread floods and national GST rate rationalization.

Facts:

• The period covered is from April to October 2025.
• The state was significantly affected by massive floods during this period.
• The recent GST 2.0 reforms, effective September 2025, lowered several tax slabs, which was expected to depress state revenue collections.
• The net GST collections for the same period in the previous fiscal year (FY 2024-25) were ₹12,907.31 crore.

Decision:

Punjab reported a total net GST collection of ₹15,683.59 crore from April to October 2025, registering an impressive year-on-year (YoY) growth of 21.51%.

Key TakeDowns:

• Exceeds National Average: The state’s 21.5% growth far exceeds the national average of 7%, placing Punjab among the top performers in North India.
• October Collection Strength: The net GST collection for October 2025 alone stood at ₹2,359.16 crore, marking a significant 14.46% rise from October 2024, demonstrating sustained economic momentum.
• Resilience Despite Challenges: The robust performance reflects the resilience of Punjab’s trade and industry, which maintained growth despite the GST rate cuts and severe flood disruptions.
• Compliance Initiatives: The state Finance Minister attributed the strong results to the Excise and Taxation Department’s strategic focus on data analytics, digital integration, and rigorous field enforcement to curb evasion.
• Fiscal Strength: Post-settlement figures for SGST and IGST further affirmed Punjab’s fiscal strength, surpassing all neighboring states except Haryana in cumulative receipts growth.