Haryana Achieves Highest SGST Growth in India with 22% Surge in FY 2025-26
In a significant economic development, Haryana has registered a robust 22% increase in gross State Goods and Services Tax (SGST) collection for the current financial year 2025–26 compared to the preceding year. This outstanding performance has been highlighted in the latest data released by the Union Ministry of Finance, positioning Haryana as the top-performing state among all states and Union Territories in India.
Record-Breaking SGST Collections and National Comparison
A spokesperson for the Department of Excise & Taxation confirmed on Sunday that Haryana's gross SGST collection, post-settlement, for the current financial year has reached an impressive Rs 44,460 crore. This figure represents a substantial increase of Rs 7,918 crore over the collection recorded up to February in the last financial year. The 22% growth rate is notably the highest in the country, far surpassing the national average growth rate of 6% for all states and Union Territories during the same period.
Even in February, Haryana maintained its momentum with a 23% growth rate compared to the same month in the previous financial year, demonstrating consistent fiscal strength. Remarkably, this growth has persisted despite the GST rate rationalization implemented by the GST Council in September 2025, indicating resilience and adaptability in the state's tax framework.
Factors Driving Haryana's Exceptional Tax Performance
Excise & Taxation Commissioner Vinay Pratap Singh attributed this robust GST growth to several key factors. Improved tax compliance has been a major driver, largely due to comprehensive reforms in the GST regime over the past few years and the adoption of advanced tax analysis systems by department officials. The state currently boasts a total of 6,22,478 GST taxpayers, supported by GST Suvidha Kendras established in all districts to facilitate registration under GST law.
Commissioner Singh emphasized that recent amendments to GST Rules have streamlined the registration process, making it more accessible for low-risk and small businesses while effectively preventing fraudulent applicants from operating. This balanced approach has fostered a healthier business environment and contributed to the steady growth in SGST collections.
Broader Economic Implications and Future Outlook
The sustained growth in SGST collections not only reflects efficient tax administration but also signals a healthy state economy. This positive trend extends beyond GST, with state excise and VAT/CST collections for the financial year 2025-26 also showing robust performance, indicating comprehensive fiscal health. The department is confident in achieving its annual targets, bolstered by these strong indicators.
The data underscores Haryana's economic vitality and effective governance, setting a benchmark for other states. As tax systems continue to evolve, Haryana's experience offers valuable insights into achieving growth through compliance enhancement and administrative efficiency.
