Punjab records robust GST growth in January 2026; Details Inside
Babushahi Bureau
Chandigarh, February 3, 2026: Punjab has registered strong and broad-based growth in Goods and Services Tax (GST) collections in January 2026, reflecting improved compliance, focused enforcement and sustained economic activity, even as the State grappled with significant revenue challenges arising from GST 2.0 rate rationalisation by the Government of India.
Disclosing the figures, Finance, Excise and Taxation Minister Harpal Singh Cheema said that Punjab’s gross GST collection in January 2026 stood at ₹2,452.66 crore, while net GST collections recorded a year-on-year increase of ₹315 crore, marking a growth rate of 15.7 per cent over January 2025.
The Minister pointed out that the achievement is particularly noteworthy as Punjab has been facing an estimated monthly revenue loss of around ₹250 crore due to GST 2.0 rate reductions affecting key sectors such as yarn, textiles, hosiery, pharmaceuticals, insurance, tyres and cement. Despite this structural loss, the State not only offset the revenue impact but also delivered growth well above the national average through sustained administrative and enforcement measures.
Providing further details, Cheema said that on a year-to-date basis up to January 2026, net GST collections grew by 13.4 per cent, with cumulative collections rising from ₹19,415 crore to ₹22,014 crore. Gross GST collections during the same period also posted a healthy growth of 13.0 per cent, underscoring the resilience of Punjab’s tax base.
A major highlight of January 2026 was the exceptional performance in SGST cash collections, which grew by 14.4 per cent, the highest among all States in the country for the month. This significantly outpaced the national average cash growth of around 6 per cent, placing Punjab well ahead of the all-India trend.
At the same time, the State continued to prioritise taxpayer facilitation. During January 2026 alone, ₹129 crore was issued as SGST refunds, while total GST refunds during the month amounted to approximately ₹300 crore. The Minister said this balanced approach of strong revenue mobilisation alongside timely refunds reflects a transparent and taxpayer-friendly administration.
Enforcement efforts also yielded strong results, with the State Intelligence and Preventive Units (SIPUs) detecting and stopping ITC theft and bogus billing worth over ₹200 crore in January 2026 through road checks, inspections and verifications. With this, total enforcement recovery in the current financial year is nearing ₹1,000 crore, the highest ever for the State.
Cheema further noted that Punjab has faced additional fiscal pressure due to the unilateral deduction of around ₹280 crore from IGST settlements by the Centre over the past three months. Despite this adverse impact, the State’s GST collections have remained firmly positive, highlighting the strength of its compliance and enforcement 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. The Finance Minister said the performance demonstrates how improved analytics, targeted enforcement, enhanced voluntary compliance and efficient administration can effectively offset structural revenue constraints.
Reiterating the government’s commitment, Cheema said the Department of Taxation will continue to ensure fair, transparent and technology-driven tax administration, promoting sustained revenue growth while supporting ease of doing business and timely refunds for compliant taxpayers.