From a steady increase of 13 to 14 per cent in GST collections till September 2025, Punjab is witnessing a decline in mop up, following the reforms in the tax regime reducing the original four major slabs (5, 12,18 and 28 per cent ) to two primary rates (5 per cent for essentials and 18 per cent as standard rate).
In October, November and December, the collections recorded a dip of Rs 511 crore. In December alone, the GST collections recorded a dip of Rs 84 crore, compared to the corresponding period in 2024. In December 2024, the GST collection was Rs 2050 crore while in December 2025, it came down to Rs 1,966 crore.
The state government had targeted an income of Rs 27,650 crore from GST alone in the 2025-26 Budget. Sources say if the trend continues, the state may not be able to reach its target. By November, the collections were Rs 16,996 crore. “It will be difficult to collect another Rs 11,000 crore in four months,” an official said.
Finance Minister Harpal Cheema said that this was not the state government’s fault. “This has been done by the Centre. Do not blame the Punjab government for this. We have been surpassing all previous records in our collections. It is not about Punjab but we are losing money from our kitty. They keep doing something or the other and the states suffer. This is why I have been seeking resumption of GST compensation,” he said.
The GST Council had reformed the tax system in September 2025, largely reducing the original major slabs to two primary rates, 5 per cent for essentials, and 18 per cent as the standard rate. A special 40 per cent rate has also been introduced to select “sin” and luxury goods.
GST collections in September 2025 were Rs 2,194 crore, an increase of Rs 261 crore from Rs 1,933 crore in September 2024. Collections in October were Rs 2,211 crore, compared to Rs 2,311 crore in 2024, down by Rs 100 crore. In November 2024, these were Rs 2,552 crore as against Rs 2,225 crore in November 2025, a fall of Rs 327 crore.
Punjab goes to polls in 2027. The government has promised Rs 1,000 per month to women. As it would be the last year of the government, it would have to make arrangements for the scheme. A key pre-2022 poll promise. The government had prepared a landpooling policy to arrange for money. However the policy had to be scrapped in view of massive protests. The government is now looking at mopping up resources by selling government properties, a step taken by previous governments in the state.
Curated by Aisha Patel
