Punjab Records Robust 12.5% Growth in Net GST Collection for 2025-26
In a significant economic development, Punjab has reported a substantial increase in its Goods and Services Tax (GST) revenue for the fiscal year 2025-26. According to state Finance Minister Harpal Singh Cheema, the net GST collection surged by 12.5%, outperforming the national average despite facing challenges from policy adjustments under GST 2.0.
Detailed Financial Figures Show Strong Performance
The financial data reveals that Punjab's net GST collection rose to Rs 26,601.1 crore in 2025-26, up from Rs 23,642.1 crore in the previous fiscal year. This represents an absolute increase of Rs 2,959 crore, underscoring the state's resilient economic activity.
March 2026 alone witnessed an impressive 16.6% growth in net GST collection, climbing from Rs 1,913.8 crore in March 2025 to Rs 2,231.9 crore. This monthly surge added Rs 318.1 crore to the state's coffers, with SGST cash collections growing by 18% during the same period. This growth rate significantly exceeded the estimated national average of 7%, positioning Punjab among the top-performing large states in India.
Mid-Year Dip and Recovery Amid GST 2.0 Changes
Minister Cheema provided insights into the quarterly trends, noting that the state experienced robust growth in the first half of the financial year. Between April and September 2025, net GST collection increased by a remarkable 23%, indicating a strong start.
However, the October-December quarter saw a 3% dip in collections, which Cheema attributed to disruptions caused by centrally driven GST 2.0 policy changes. These adjustments temporarily affected revenue streams, but the state demonstrated resilience by bouncing back in the January-March 2026 quarter.
During this final quarter, gross GST collection rose by 9%, and net collection increased by 11%, effectively offsetting the earlier slowdown and contributing to the overall annual growth.
Comparative Performance with Other States
Cheema also highlighted that Punjab's performance stands in contrast to some other large states. He mentioned that states such as Jharkhand, Chhattisgarh, Odisha, and Madhya Pradesh recorded negative growth in both March and annual GST figures, emphasizing Punjab's relative success in navigating the fiscal landscape.
This positive trend in GST collection reflects Punjab's economic stability and effective fiscal management, even amid national policy transitions. The state's ability to recover from mid-year challenges showcases its adaptive capacity and potential for sustained growth in the coming years.
