Chandigarh, September 24
Punjab Finance, Planning, Excise and Taxation Minister, Advocate Harpal Singh Cheema, announced the launch of the ‘Punjab One Time Settlement Scheme for Recovery of Outstanding Dues, 2025’, effective from October 1 to December 31, 2025. The scheme seeks to resolve around 20,039 pending cases involving legacy tax dues of nearly ₹11,968.88 crore under various pre-GST Acts.
Approved by the Punjab Cabinet led by Chief Minister Bhagwant Mann, this will be the third and final OTS introduced by the AAP government. Taxpayers who fail to avail this opportunity will face recovery proceedings starting January 1, 2026.
“The pending cases include dues under the Punjab VAT Act, Central Sales Tax Act, and other pre-GST laws. This scheme provides significant waivers on interest and penalties, making it highly beneficial for businesses,” said Cheema.
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Key Features of the OTS:
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For dues up to ₹1 crore: 100% waiver on interest & penalty + 50% waiver on tax.
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For dues between ₹1 crore and ₹25 crore: 100% waiver on interest & penalty + 25% waiver on tax.
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For dues above ₹25 crore: 100% waiver on interest & penalty + 10% waiver on tax.
Cheema highlighted that if all eligible taxpayers participate, the state expects to recover approximately ₹3,344.50 crore, while granting waivers worth over ₹8,441.56 crore.
The scheme will apply to all taxpayers whose assessment orders are finalized by September 30, 2025, but will exclude government food agencies.
Cheema urged all eligible businesses to use this “final opportunity” before the deadline, stressing that the initiative will ease compliance, resolve long-pending disputes, and create a more business-friendly environment in Punjab.
