Punjab Records Highest-Ever GST Growth of 44.44% in June 2025, ₹6,830 Crore Collected in Q1
Punjab Sets All-Time Record with 44.44% GST Growth in June 2025; ₹6,830 Crore Collected in Q1 FY 2025-26
CHANDIGARH, July 1, 2025: In a historic fiscal achievement, Punjab Finance Minister Harpal Singh Cheema announced that the state has registered a record-breaking 44.44% growth in Net GST collections for June 2025, collecting a total of ₹2,379.90 crore — the highest for any June in the state’s history. For the first quarter of FY 2025-26, the state recorded a substantial 27.01% growth, collecting ₹6,830.40 crore, firmly positioning Punjab among the top-performing states in GST revenue generation.
At a press briefing in Chandigarh, Cheema credited the surge to the state’s data-driven enforcement efforts, robust compliance measures, and responsible tax policies under the leadership of Chief Minister Bhagwant Singh Mann.
Honouring Top Taxpayers and Emphasizing Compliance
On the occasion, the Minister felicitated five top taxpayers of Punjab, including:
- Ashu Agnihotri (Ambuja Cement)
- Sanjay Malhotra (HPCL-Mittal Energy Ltd)
- Chaman Lal Sharma (Samsung India Pvt Ltd)
- Ankush Sharma (Tata Steel)
- Nitin Dada (Dada Motors)
Cheema applauded their exemplary contribution to state revenues, urging businesses to follow ethical tax practices and support the government’s mission of inclusive development and fiscal transparency.
Punjab Surpasses National Averages Amid Geopolitical Tensions
Despite challenges including India-Pakistan border tensions in May 2025, Punjab’s monthly GST growth trend remained strong:
- April 2025: 15.35%
- May 2025: 24.59%
- June 2025: 44.44%
In comparison, GST revenue for June 2024 stood at ₹1,647.69 crore, reflecting an increment of ₹732.21 crore. Punjab’s Q1 FY 2025-26 collections now stand far ahead of the ₹5,377.75 crore collected in Q1 of the previous fiscal year, marking fourfold growth over last year’s 6.41% Q1 increase.
Harpal Cheema Slams Previous Governments for Fiscal Mismanagement
Cheema drew a stark contrast with previous regimes, asserting that:
- The AAP Government collected ₹62,733 crore in GST over three years
- Congress regime (2018–22): ₹55,146 crore
- SAD-BJP regime (2014–16): 4.57% and 2.67% growth in VAT and CST
He highlighted how the Congress government relied heavily on compensation (₹30,070 crore) and lacked a vision for revenue expansion, unlike the current administration, which focused on strengthening enforcement, increasing compliance, and investing in long-term fiscal stability.
Crackdown on GST Fraud and Fake Billing Syndicates
Cheema also revealed that Punjab’s State Intelligence & Preventive Unit (SIPU) had unearthed fraudulent GST activities worth ₹866.67 crore operated through 20 fake firms by a single accountant, leading to an estimated tax evasion of ₹157.22 crore.
Another major case involved M/s Maa Durga Roadlines, a Chandigarh-based firm, implicated in bogus e-way bill generation and unaccounted goods transport valued at ₹168 crore, resulting in a tax liability of ₹30.66 crore.
“Our enforcement teams are proactively disrupting evasion networks and ensuring that honest taxpayers are protected,” Cheema asserted.
Managing Legacy Debt While Building a Future-Ready Economy
Responding to media queries, Cheema shared sobering details of legacy debt inherited from SAD-BJP and Congress governments:
- Interest payments in FY 2025-26: ₹25,000 crore
- Principal repayments: ₹18,200 crore
- Planned borrowings: ₹49,900 crore
- GOI deductions: ₹13,000 crore
- Q2 borrowing (FY 2025-26): ₹8,500 crore to manage ₹3,500 crore in debt redemption
Despite these constraints, the Mann government has infused ₹1,000 crore each into the Guarantee Redemption Fund (GRF) and the Consolidated Sinking Fund (CSF) — now exceeding ₹10,000 crore, a significant rise from ₹3,000 crore when the AAP took office.