Chandigarh, Feb 3: The Punjab government has successfully protected its tax base, reporting a 15.7 percent surge in net GST collections for January 2026. Finance Minister Harpal Singh Cheema stated that the state’s performance is the highest in the country regarding SGST cash growth, reaching 14.4 percent and significantly outpacing the all-India trend.
This financial milestone was achieved despite structural challenges, including a sharp reduction in revenue from key sectors like hosiery, insurance, and yarn following the Union Government’s GST 2.0 rate changes. Cumulative net GST collections for the fiscal year up to January have risen to Rs 22,014 crore, compared to Rs 19,415 crore during the same period last year.
The minister noted that the state has balanced strict enforcement with efficient taxpayer facilitation. During January, the taxation department processed Rs 129 crore in SGST refunds to ensure liquidity for businesses. Meanwhile, enforcement units recovered over Rs 200 crore in a single month by targeting input tax credit theft through advanced analytics and road inspections.
“Our enforcement recovery in the current financial year is nearing Rs 1,000 crore, the highest ever recorded,” Cheema said. He noted that this data-driven action against tax evasion has allowed the state to remain resilient even as the Centre deducted Rs 280 crore from IGST settlements over the past three months.
The finance department mentioned that the robust figures reflect a mature and transparent tax ecosystem. Cheema directly said that improved analytics and enhanced voluntary compliance have effectively countered the policy-driven revenue constraints imposed by the central government.
