Punjab's GST collections soar by 25.31% in May 2025 to ₹2,006.31 crore

Punjab’s financial position continues to strengthen impressively, with the state registering a record 25.31% growth in net GST collection for the month of May 2025, as compared to the same month last year. This marks the highest-ever GST collection for the month of May in Punjab’s history. The net GST revenue rose to ₹2,006.31 crore in May 2025, up from ₹1,601.14 crore in May 2024 — showing a remarkable increase of ₹405.17 crore. In comparison, May 2024 had seen a growth of ₹121 crore (8.17%) over ₹1,480 crore collected in May 2023. This year’s performance clearly indicates a robust and accelerating growth trend in Punjab’s fiscal health.

Announcing these figures on Sunday, Punjab Finance, Planning, Excise, and Taxation Minister Advocate Harpal Singh Cheema attributed the impressive growth to strong tax administration, enhanced compliance, and a resilient economic environment fostered under the leadership of Chief Minister Bhagwant Singh Mann. He emphasized that the AAP Government's commitment to financial prudence and economic reform has led to this consistent upward trend in revenue.

Minister Cheema further noted that this surge not only represents the highest year-on-year monthly growth in recent years but also outpaced the national average GST growth, establishing Punjab among the top-performing states in tax mobilization. “We have curbed tax evasion, improved field-level enforcement, and enabled a seamless taxation framework that supports businesses while safeguarding state revenues,” he added.

This fiscal milestone is particularly commendable given the challenges Punjab faced as a border state, including heightened India-Pakistan tensions and a war-like situation during the period. Despite these constraints, the state achieved a growth rate that more than tripled the corresponding growth of 8.17% in May 2024.

The Finance Minister emphasized that Punjab’s record GST growth in May 2025 was driven by a combination of improved compliance, proactive taxpayer engagement, and robust enforcement by the Taxation Department. Key actions included the physical verification of 195 bogus firms, leading to the blocking of ₹75.79 crore in fraudulent Input Tax Credit (ITC); detection of major tax evasion in the coal sector, involving off-book transactions exceeding ₹225 crore and ₹11.65 crore in evaded tax; and the uncovering of ₹900 crore in bogus gold bullion transactions in Ludhiana, with ₹21 crore of ineligible ITC blocked.

Finance Minister Cheema applauded the efforts of the Taxation Department's officers and field staff for their dedication and impactful enforcement. He stated that this additional revenue would provide further strength to the State Government’s development initiatives and enhance public service delivery.

Looking ahead to June 2025, the department is committed to maintaining this momentum and achieving even higher growth, building on the solid foundation of policy reform, administrative efficiency, and fiscal discipline.