Chandigarh: Punjab recorded an 11.84% year-on-year growth in net GST revenue in August 2026, with collections reaching ₹2,406.33 crore compared with ₹2,151.63 crore during the same month last year.
Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema said the state collected an additional ₹254.70 crore during the month, reflecting stronger economic activity and improved tax compliance.
SGST Cash Collection Rises 18.77%
Punjab also reported a significant rise in SGST cash collection. The figure increased from ₹750.37 crore in August 2025 to ₹891.24 crore in August 2026.
This represents an increase of ₹140.87 crore, or 18.77%. Cheema described it as the highest SGST cash growth recorded by any major state during August.
The rise comes as the state continues to strengthen technology-driven tax administration while focusing on improving compliance among taxpayers.
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GST Revenue Up Nearly 17% Since April
Punjab’s GST performance has also remained strong during the first five months of the current financial year.
Between April and August 2026, the state recorded total GST revenue of ₹12,861.42 crore, compared with ₹10,971.62 crore during the corresponding period last year.
The increase of ₹1,889.80 crore translates into growth of around 17%.
Cheema attributed the improved revenue performance to growing taxpayer confidence, sustained economic activity and technology-based monitoring of tax administration.
Government Steps Up Action Against Tax Evasion
Alongside the revenue growth, the Punjab government has intensified enforcement against suspected tax evasion and fraudulent transactions.
Three cases related to alleged GST evasion were registered in Mandi Gobindgarh on August 20 under Section 318(4) of the Bharatiya Nyaya Sanhita.
In another major operation, the State GST Mobile Wing detected a suspected fraudulent refund network linked to M/s A-One International.
The operation led to the recovery of ₹1 crore in cash, while approximately ₹18 lakh was frozen in a bank account. Refund claims worth around ₹5 crore were also withheld pending verification.
Investigation Into Fake Purchases and ITC Claims
According to Cheema, the investigation involves suspected fake purchases, wrongful availment of input tax credit and attempts to secure fraudulent refunds from the government exchequer.
Officials are continuing the investigation to identify other entities allegedly involved in the network and recover any outstanding government revenue.
The minister said the state would continue using data-based investigations to identify suspicious transactions and prevent revenue leakage.
Focus on Honest Taxpayers
Cheema said the government would maintain a balance between supporting compliant businesses and taking strict action against tax fraud.
The department will continue targeting practices such as:
- Fake billing and fraudulent transactions
- Wrongful input tax credit claims
- Fraudulent GST refund applications
At the same time, honest taxpayers will receive support to comply with tax requirements and conduct business smoothly.
Higher Revenue to Support Public Services
Cheema credited compliant taxpayers and officials of the Excise and Taxation Department for contributing to Punjab’s improved GST performance.
The additional revenue will strengthen the state’s ability to finance public services and development works.
The latest figures indicate that Punjab is seeing sustained improvement in GST collections while simultaneously strengthening enforcement against tax evasion. The combination of better compliance, digital monitoring and targeted investigations could help the state improve revenue mobilisation and create greater fiscal space for development.
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