In yet another demonstration of robust fiscal management and effective governance, Punjab has recorded a phenomenal 32.08% year-on-year increase in Goods and Services Tax (GST) revenue for July 2025, signaling a continued streak of exceptional growth in state finances. Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema, while sharing the updated revenue figures, asserted that the Aam Aadmi Party (AAP) government’s clear vision, strict enforcement measures, and pro-business policies have turned the state into one of India’s top performers in tax mobilization.
Cheema disclosed that the net GST collection for the month of July alone stood at ₹2,357.78 crore, reflecting a sharp increase of ₹572.71 crore compared to ₹1,785.07 crore collected during the same month in 2024. He also emphasized that this strong performance isn’t a one-off achievement but part of a consistent upward trend seen over the past three and a half years under the AAP administration, both on a monthly and yearly basis.
By the end of July in the current financial year 2025–26, Punjab’s cumulative GST revenue has reached ₹9,188.18 crore, a growth of ₹2,025.36 crore over the ₹7,162.82 crore collected during the same period in the previous fiscal year. This momentum, according to Cheema, is rooted in well-structured fiscal planning, the creation of a business-conducive atmosphere, and enhanced tax compliance among traders and businesses.
A major factor fueling this revenue boost has been the intensified anti-evasion drive led by Punjab’s State Investigation and Preventive Unit (SIPU). In the first quarter of 2025–26 alone, SIPU recovered ₹156.40 crore in penalties, with ₹57.43 crore sourced from on-road checks and ₹98.97 crore through inspection and verification exercises. SIPU also unearthed two major fraud cases involving fake GST transactions worth ₹2,620.80 crore and an estimated tax evasion of ₹296.32 crore. These discoveries led to the registration of two FIRs in June, signaling a zero-tolerance policy against tax fraud.
Minister Cheema reiterated that the government’s emphasis on rooting out fraudulent activities, while simultaneously supporting honest taxpayers, has led to greater compliance and has encouraged businesses to align with state tax norms. The trust-based ecosystem being developed, he said, not only boosts state revenue but also reassures genuine entrepreneurs and MSMEs that they operate in a fair and equitable environment.
Highlighting the broader implications of these developments, Cheema emphasized that Punjab has outpaced the national average in GST growth consistently. This has established the state’s fiscal strategy as a model for other regions to study. The Finance Minister added that the current trend bodes well for the state’s future, allowing it to invest more aggressively in infrastructure, health, education, and welfare.
The Finance Minister concluded by reaffirming the AAP government’s commitment to maintaining a transparent and efficient tax administration system that ensures equitable contributions from all sectors of the economy. He stressed that Punjab’s fiscal health is on a positive trajectory, and with continued vigilance and pro-business governance, the state is well on its way to achieving economic resilience and sustainable development.
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