Chandigarh, Feb 3: Punjab has secured the top position in India for SGST cash growth during January 2026, outperforming the national average despite significant fiscal challenges. State Finance, Excise, and Taxation Minister Harpal Singh Cheema announced on Tuesday that the state’s SGST cash collections rose by 14.4 percent, more than doubling the national growth trajectory of approximately 6 percent.
The net GST collection for the month reached Rs 2,452.66 crore, marking a year-on-year increase of Rs 315 crore. This 15.7 percent growth comes at a time when the state is navigating a monthly revenue loss of nearly Rs 250 crore caused by federal rate rationalization under GST 2.0. Industries such as textiles, pharmaceuticals, and cement have seen rate reductions, yet the state managed to offset these losses through rigorous administrative oversight.
Minister Cheema noted that the state’s success is a result of improved compliance and data-driven enforcement. He also pointed out that the central government has unilaterally deducted roughly Rs 280 crore from Punjab’s IGST settlements over the last quarter.
“Despite the adverse impact of these deductions and rate cuts on state revenues, Punjab continues to remain firmly in the green,” Cheema said. He mentioned that the current financial year has seen record enforcement recoveries, with the State Intelligence and Preventive Units (SIPUs) nearing the Rs 1,000 crore mark in stopping bogus billing and tax evasion.
In addition to enforcement, the government issued approximately Rs 300 crore in total GST refunds during January to maintain a taxpayer-friendly environment. The minister directly said that the department remains committed to a technology-driven administration that ensures revenue growth while promoting the ease of doing business.
