Punjab Government's GST Collection in May at Rs. 2,006 Crore

Chandigarh, June 2 – The Punjab government has announced that its Goods and Services Tax (GST) collection for the month of May has hit a record high. In the month, it clocked a 25.31% year-on-year increase in net GST revenue. The state’s GST collections surged to ₹2,006.31 crore in May 2025, compared to ₹1,601.14 crore during the same month last year. This is a record rise of ₹405.17 crore.

Finance Minister Harpal Singh Cheema celebrated the milestone as a clear signal of Punjab’s strengthening fiscal health. He attributed the performance to improved tax administration, heightened compliance, and a resilient economic framework shaped under the leadership of Chief Minister Bhagwant Mann.

“This year’s record-breaking May collection signifies a consistent and accelerating growth trend,” said Cheema. “It also represents the highest year-on-year monthly growth witnessed in recent years, surpassing the national average.”

He emphasised the AAP government’s focus on financial discipline and systemic economic reforms. “We’ve made substantial progress by curbing tax evasion, enhancing field-level enforcement, and building a taxation framework that both supports businesses and protects state revenues.”

Key Enforcement Highlights:

• Physical verification of 195 bogus firms, resulting in the blocking of ₹75.79 crore in fraudulent Input Tax Credit (ITC)
• Detection of coal sector evasion, involving off-book transactions worth over ₹225 crore and ₹11.65 crore in evaded tax
• Uncovering of ₹900 crore in bogus gold bullion transactions in Ludhiana

Cheema also added that this achievement is significant, as the state has performed brilliantly despite the geopolitical challenges faced by Punjab as a border state, including heightened tensions between India and Pakistan.

This performance strengthens Punjab’s fiscal outlook and sets a new benchmark for future revenue growth.

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. Every effort is made to ensure the accuracy, relevance, and timeliness of the information provided. However, inadvertent errors or omissions may occasionally occur.

Should you have any concerns, queries, or wish to point out any discrepancies in our content, please write to us at content@hdfcsec.com. Your feedback is valuable and helps us maintain the highest standards of content integrity.

Please note that the information shared is intended solely for informational purposes and should not be construed as investment advice. Users are advised to consult their financial advisors before making any investment decisions.