Punjab tax department has recorded a significant surge in enforcement performance in FY26, driven by intelligence-led actions and stricter compliance measures, according to Finance Minister Harpal Singh Cheema. The state imposed penalties worth Rs 1,383.11 crore during the year, out of which Rs 1,137.85 crore has recovered, marking a sharp improvement in revenue realisation and enforcement efficiency.

Key Highlights

• Punjab tax department recovers Rs 1,137 crore, driven by intelligence-led enforcement and strict compliance measures.
• Crackdown exposes fake billing, arrests made, Rs 451 crore safeguarded through strong ITC control measures.

Highlighting the achievement, Harpal Singh Cheema said, “Driven by the focused and intelligence-led actions of the State Intelligence and Preventive Units, the state taxation department imposed massive penalties amounting to Rs 1,383.11 crore during the year.” He further noted that the high recovery rate reflects a “transformational shift” in Punjab’s ability to detect and act against tax evasion.

Inspection-based enforcement emerged as the key driver, contributing Rs 1,215.95 crore in penalties and Rs 972.15 crore in recoveries, while road-checking operations added Rs 165.71 crore. The performance marks a multi-fold increase compared to 2024–25, when inspection-led penalties stood at Rs 147.28 crore and recoveries at Rs 41.53 crore, underlining the state’s improved enforcement capabilities.

The crackdown also targeted organised tax evasion networks, with authorities registering eight FIRs and making 15 arrests during the year. Investigations revealed fraudulent transactions worth Rs 385 crore, including tax evasion of Rs 69.57 crore through fake invoicing without actual supply of goods. Cases were reported across key cities such as Ludhiana, Bathinda, Mandi Gobindgarh, and Chandigarh, focusing on illegal transport and deceptive billing practices.

Advanced intelligence systems enabled the detection of large-scale fraud, including fake billing worth Rs 900 crore in gold transactions, Rs​ 226 crore in coal-related irregularities, and Rs 423 crore in bogus billing networks. Authorities also uncovered a Rs 200 crore fraud linked to a mobile application, highlighting the increasing sophistication of tax evasion techniques.

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In addition, stringent Input Tax Credit (ITC) control measures played a crucial role in safeguarding public funds. The government blocked Rs 244.82 crore and reversed Rs 206.64 crore in fraudulent credits, protecting a total of Rs 451.46 crore, along with Rs 19.08 crore recovered through direct cash enforcement. The department also identified 1,579 suspicious dealers, cancelling registrations of 922 non-existent entities after verification.

The latest figures highlight Punjab’s intensified focus on compliance, transparency, and revenue protection, as the state strengthens its enforcement framework to curb tax evasion and support sustainable fiscal growth.