Collections Surge 14.4%, Far Outpacing National Average
Chandigarh, February 3:
Punjab has recorded strong and broad-based growth in GST collections in January 2026, reflecting improved compliance, focused enforcement and sustained economic activity, even in the face of significant revenue challenges arising from GST 2.0 rate rationalisation by the Government of India.
Gross GST collection in the State during January 2026 stood at Rs. 2452.66 crore, whereas NET GST collection registering year-on-year growth of ₹315 crore at the rate of 15.7% over January 2025, revealed the Finance, Excise and Taxation Minister Harpal Singh Cheema.
This achievement is particularly noteworthy as Punjab faced an estimated monthly revenue loss of around Rs. 250 crores due to GST 2.0 rate reductions impacting key sectors such as yarn, textiles, hosiery, pharmaceuticals, insurance, tyres and cement. Despite this structural loss, the State not only compensated for the revenue impact but also delivered growth well above the national trend through sustained administrative and enforcement efforts.
Divulging more, the Minister said that on a year-to-date basis (up to January 2026), net GST collections have grown by 13.4%, with cumulative collections increasing from Rs. 19,415 crores to Rs. 22,014 crores. The Gross GST collections during the same period have also recorded a healthy growth of 13.0%, underscoring the resilience of Punjab’s tax base.
A key highlight of January 2026 has been the exceptional performance in SGST cash collections, which grew by 14.4%, the highest growth rate among all States in India for the month. This stands in sharp contrast to the national average cash growth of around 6%, placing Punjab significantly ahead of the all-India trajectory.
At the same time, the State has maintained a strong focus on taxpayer facilitation. During January 2026 alone, Rs. 129 crores of SGST refunds were issued, while total GST refunds in the month amounted to approximately Rs. 300 crores. This balanced approach of firm revenue mobilisation combined with timely and regular refunds reflects a mature, transparent and taxpayer-friendly tax administration.
Enforcement actions have also yielded substantial results. The State Intelligence and Preventive Units (SIPUs) crossed Rs. 200 crores in stopping ITC theft & arresting the trend of bogus billing during January 2026 through road checking, inspections and verifications. With this, total enforcement recovery in the current financial year is nearing Rs. 1,000 crores, the highest ever, clearly demonstrating intensified and data-driven action against tax evasion.
In addition to GST 2.0-related challenges, Punjab has faced further fiscal pressure due to the unilateral deduction of approximately Rs. 280 crores from IGST settlements by the Centre over the last three months. Despite this adverse impact on State revenues, Punjab continues to remain firmly in the green, reflecting the strength of its GST administration and compliance ecosystem.
Despite rate rationalisation, sector-specific revenue losses and IGST settlement deductions, Punjab has successfully protected its revenue base and achieved growth well above the national average. This performance highlights how improved analytics, targeted enforcement, enhanced voluntary compliance and efficient administration can effectively offset structural and policy-driven revenue constraints.
The Department of Taxation reiterates its commitment to fair, transparent and technology-driven tax administration, ensuring sustained revenue growth for the State while simultaneously promoting ease of doing business and timely refunds for compliant taxpayers, added Harpal Singh Cheema.
