Chandigarh, Sept. 5 -- Punjab is likely to see a decline of at least 20% in its goods and services tax (GST) collections following the rate rationalisation approved by the GST Council in the consumption tax on Wednesday, according to official estimates.

A top government functionary said that Punjab would be among the states most affected by the changes in GST rates, given its heavy reliance on the indirect tax for tax revenue.

GST has been the single largest contributor to the debt-ridden state's own tax collections year after year. Of the own tax revenue of Rs.63,250 crore projected in the 2025-26 budget estimates, the state expected to garner Rs.27,650 crore (about 44%) from the goods and services tax.

During the 2024-25 financial ye...