Punjab posts 16.03% GST growth to ₹17,860 crore, with excise revenue at ₹7,401 crore. FM Harpal Singh Cheema credits reforms, OTS Scheme and enforcement efforts.

Harpal Singh Cheema, the minister of finance, planning, excise, and taxation for Punjab, said that the state had reached a major fiscal milestone in the fiscal year 2025–2026. This was due to a 16.03% increase in GST collections, which came to Rs 17,860.09 crore, and a strong collection of excise revenue, which reached Rs 7,401 crore as of November 2025.

The Finance Minister emphasized that the Excise and Taxation department has not only exceeded prior benchmarks but also successfully implemented the One-Time Settlement (OTS) Scheme-2025 and advanced data analytics to dismantle tax evasion, attributing this success to a harmonious framework of innovation and vigilance.

The Goods and Services Tax (GST) collections increased by Rs 2,467.30 crore over the same period last year, according to the FM Cheema, who reviewed sectoral performance. This indicates the state’s emphasis on economic recovery and increased taxpayer compliance. He said that the department’s focused initiatives maintained cash tax receipts even after the GST 2.0 rate rationalization in September 2025, which lowered taxes on necessities from 12% to 5%. Concurrently, the Central Sales Tax (CST) and Value Added Tax (VAT) revenues were Rs 5,451.76 crore, representing a 3.35% rise over the previous year.

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“Under the Excise Policy 2025–2026, which established an ambitious yearly collection target of Rs 11,020 crore, the Excise Commissionerate has also demonstrated exceptional performance.” The Finance Minister said, “The department has already registered an 8.64% increase in excise revenue over the same period last year by November 2025.” This comes after the previous financial year 2024–2025, when revenue grew by 16.36% to reach Rs 10,723 crore, setting a new record. With 3,860 FIRs filed and 3,795 arrests made this year to stop alcohol smuggling and illegal distillation, the Finance Minister further underlined that enforcement is remained a top priority.

The success of the One-Time Settlement (OTS) Scheme-2025, which as of December 18, 2025, had resolved 3,574 cases and generated a total recoveries of Rs 52 crore while offering tax waivers to the trade community, was another significant highlight of the year, the Finance Department noted. According to him, the tax agency also used big data analytics and its own Tax Intelligence Unit (TIU) to recover Rs 344.06 crore in taxes and penalties using tool-generated insights. Additionally, the ongoing surveillance of GSTR-3B non-filers produced cash deposits of Rs 2,185.96 crore.

The State Intelligence & Preventive Units (SIPUs) were also praised by the finance minister for their strengthened enforcement strategy, which resulted in a penalty increase to Rs 618.53 crore.