The North News
Chandigarh, January 1
The Punjab government has extended the deadline for its One-Time Settlement (OTS) scheme for recovery of outstanding tax dues until 31 March 2026, offering fresh relief to traders and industry across the state. The decision was approved by Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema under the leadership of Chief Minister Bhagwant Singh Mann, following representations from trade bodies, including the GST Practitioners Association of Punjab.
He said that the extension was granted in view of strong participation in the scheme, with 6,348 applications received so far. The government also acknowledged that many taxpayers faced overlapping statutory deadlines towards the end of 2025, along with delays in the service of VAT assessment orders, which made it difficult for businesses to accurately assess their tax liabilities within the earlier deadline.
Launched on 1 October 2025, the OTS Scheme is aimed at resolving long-pending disputes under pre-GST laws, including VAT and Central Sales Tax, while unlocking revenue for the state. Under the scheme, eligible taxpayers can avail waivers of up to 100% on interest and penalties, along with substantial relief on the principal tax amount, depending on the demand involved.
Finance Minister Cheema said the extension would give genuine taxpayers a final opportunity to settle legacy disputes without procedural pressure. He added that the move reflected the government’s commitment to creating a pro-business environment in Punjab.
The minister urged eligible businesses, including rice millers, to make use of the extended deadline and clear outstanding dues before the start of the next financial year. He warned that strict recovery proceedings would be initiated against defaulters who fail to opt for the scheme after 31 March 2026.
