Punjab’s GST growth slows down to 4-year low at 5.97%
Sluggish growth in GST collection has become latest concern for state govt, which is grappling with mounting debt burden The growth in Punjab’s goods and services tax (GST) collection has slowed to a four-year low in the first half of the financial year 2024-25.
GST revenue increased by 5.97% year-on-year during the April-September period this year, rising to Rs. 10,799.64 crore from Rs. 10,193.94 crore in the same months of the previous fiscal year. This is around 41.94% of the full-year target of Rs. 25,750 crore set by the state government, according to data on key fiscal indicators released on Wednesday. The state government had projected a 12% increase in GST revenue in its budget estimates (BE) presented in March 2024 for the current year.
This is the lowest percentage growth in GST collection in four years. The state’s goods and services tax collection had risen by 20% and 18.14% during the April-September period of financial years 2023-24 and 2022-23, respectively. The sluggish growth in GST collection, the largest source of tax revenue in Punjab, has become the latest concern for the state government, which is grappling with mounting debt burden. The goods and services tax makes up almost a third of the state’s total tax revenue.
