Haryana has witnessed a five-time more collection of Goods and Services Tax (GST) than neighbouring Punjab in the 2024-25 fiscal.
For the entire financial year, Haryana’s total gross GST collection amounts to Rs 1,19,362 crore, marking a remarkable 16 per cent growth against 2023-24. This is the highest growth rate among all states, exceeding the national average’s 10 per cent, said Haryana Excise and Taxation Commissioner Vinay Pratap Singh on Friday.
On the other hand, Punjab witnessed a net annual growth rate of 12.99 per cent in GST collections, with a net annual collection of Rs 23,642.15 crore compared to Rs 20,923.37 crore in the previous fiscal year.
Haryana’s gross GST collection for March 2025 stands at Rs 10,648 crore, reflecting a 12% increase compared to March 2024. The national average growth rate for March 2025 is 8.79%, placing Haryana 6th highest in growth percentage among major states for the month of March. In March 2025, Punjab recorded a net GST collection of Rs 1,913.82 crore, reflecting an 8.63 per cent growth compared to Rs 1,761.70 crore in March 2024.
Haryana officials admit that while most of the GST collection (65%) comes from two districts Gurgaon (45%) and Faridabad (20%), Panipat too contributes nearly 7-8 per cent of the state’s total GST collection.
Vinay Pratap Singh, however, added that the main factor behind the high GST collection in Haryana is better tax compliance. “To capture the high tax, better compliance of the tax structure is must. We are growing at a 16 per cent growth in tax collection which is the highest in the country,” he said.
He added that owing to better industrialisation in Haryana, the service sector too is booming which is contributing a major push to the GST collection. “After the service sector, manufacturing is the second most important factor for high GST collection,” he said, adding that better industrialisation policies augment the tax collection.
Officials said that Punjab’s contribution to the agrarian economy is higher than that of Haryana which is GST exempt.
When asked about Haryana’s higher GST collection, a senior officer of Punjab, while requesting anonymity, said that it’s because a large part of Haryana falls in the National Capital Region (NCR). The Punjab officer added that the state too has witnessed a net annual growth rate of 12.99 per cent in GST collections this year than of the previous financial year. He added that Punjab has industrial hubs such as Ludhiana and Mandi Gobindgarh which generates good GST.
Vinay Pratap Singh said that the Haryana Excise and Taxation Department has exceeded its budget target for the financial year 2024-25, achieving remarkable results in various tax collections. For the financial year 2024-25, the state had allocated a budget target of Rs 61,950 crore for the Excise and Taxation Department. The department has made a net collection of Rs 63,371 crore, achieving 102.3% of the allocated target. He said that the collection under State GST amounted to Rs 39,153 crore, surpassing the target of Rs 37,500 crore and exceeding last year’s collection (excluding cess) by 13.77%.
The collection under Excise Duty amounted to Rs 12,701 crore, exceeding the budget target of Rs 12,650 crore, and showing a growth of 12% over last year’s collection. The collection under VAT and CST reached Rs 11,517 crore, reflecting a 1.6% increase over last year’s collection.
Source from: https://indianexpress.com/article/cities/chandigarh/haryana-gst-collection-5-times-of-punjab-9926051/
