During this festive season, Punjab has witnessed a significant increase in economic activities, leading to a substantial rise in the state’s GST collection for October and this month recorded a 12% increase compared to the same period last year. In October 2024, Punjab’s GST collection reached ₹2,211 crore, up from ₹1,981 crore in October 2023. Goods and Services Tax (GST) is collected on items except for petrol and alcohol.
Similarly, GST collection in October increased compared to September. While September 2024 recorded a 4% increase with ₹1,933 crore collected, October experienced a 12% growth. This trend indicates positive signs for Punjab’s economy, which faced setbacks during the COVID-19 pandemic, leading to decreased GST collections. However, the steady growth in GST collection is a relief for the state.
Neighboring states also saw variations in GST collection. Haryana’s GST collection grew from ₹8,716 crore in October last year to ₹10,045 crore this year, marking a 15% increase. In contrast, Himachal Pradesh’s GST collection decreased, dropping from ₹885 crore in October 2023 to ₹867 crore this October.
Punjab Government Facing Funding Challenges
It’s worth noting that GST, excise, and Value Added Tax (VAT) play crucial roles in the state’s revenue. However, since GST was implemented, several revenue streams have shifted to the central government, leading to a funding shortage for Punjab. This is why the state government has requested a special package from the Finance Commission. Additionally, Punjab’s Finance Minister, Advocate Harpal Singh Cheema, recently urged for equitable distribution of additional GST cess among all states during a Group of Ministers (GoM) meeting.
