In a significant fiscal achievement, the Punjab government has recorded its highest-ever Goods and Services Tax (GST) collection for the month of May. The state registered a 25.31% surge in GST revenue, rising from ₹1,601.14 crore in May 2024 to ₹2,006.31 crore in May 2025. This marks an increase of ₹405.17 crore, signaling robust financial health and effective governance.
Sharp Rise Reflects Honest Governance
Announcing the figures on Sunday, Finance, Planning, Excise and Taxation Minister Advocate Harpal Singh Cheema said,
“We have curbed tax evasion, improved field-level enforcement, and enabled a seamless taxation framework that supports businesses while safeguarding state revenue.”
The surge reflects the success of the Bhagwant Mann-led government’s three-pronged strategy:
Tax Evasion Curbed – Strong enforcement at ground level
Businesses Empowered – Seamless taxation encouraging compliance
Honest Governance – Transparent administration boosting revenue trust
GST Growth Outpaces National Average
According to government sources, the year-on-year increase not only marks the highest growth for any May in Punjab’s history but also surpasses the national average GST growth rate, putting the state among the top performers in India in terms of tax mobilisation.
To put this in context, May 2024 had recorded only an 8.17% increase over May 2023, rising by ₹121 crore. This year’s growth, however, has more than tripled that figure.
Achievement Despite External Pressures
Minister Cheema highlighted that this fiscal feat was achieved despite Punjab’s geopolitical challenges as a border state, including heightened Indo-Pak tensions and a war-like atmosphere during the period.
“This milestone is a testament to the resilience of the state’s fiscal policies and the honesty-driven approach of the government,” he said.