Punjab GST collections dip 7% post reforms

Punjab's GST collections have decreased by 7% after the central government made changes to the tax system.

The original four tax rates were reduced to two main rates: 5% for essential items and 18% as the standard rate.

A special 40% rate was also introduced for certain luxury and 'sin' goods.

In December 2025, the state collected Rs 1,966 crore, which is Rs 84 crore less than the previous year.

The state government is worried because they might not meet their annual GST collection target of Rs 27,650 crore.

The Finance Minister, Harpal Cheema, blames the central government for the decline, stating that the state is losing money due to these changes.

The state is now looking for other ways to raise funds, such as selling government properties, as they need money for various schemes, including a promised Rs 1,000 monthly payment to women.