-Finance Minister Cheema Hails Move as Commitment to Ease Legacy Tax Burdens and Boost Business Confidence
Chandigarh, January 1
Ushering in the New Year with taxpayer-friendly reforms, the Bhagwant Singh Mann-led Punjab Government has extended the ‘Punjab One-Time Settlement (OTS) Scheme for Recovery of Outstanding Dues, 2025’ until March 31, 2026, offering a crucial breather to traders, industrialists, and rice millers grappling with pre-GST tax arrears.
The extension, formally approved by Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema, follows fervent appeals from stakeholders like the GST Practitioners Association (GSTPA) Punjab. It addresses the crunch of overlapping statutory deadlines in November-December 2025 and hurdles such as delayed VAT assessment orders, which left many unable to calculate liabilities by the original cutoff of December 31.
To date, the scheme—launched on October 1—has drawn 6,348 applications, with 4,365 greenlit, settling tax, interest, and penalties totaling ₹311.07 crore. Of this, ₹65.81 crore has been recouped under OTS terms, while a whopping ₹245.26 crore in waivers has been granted, underscoring the initiative’s role in slashing litigation and freeing up state revenue.
Under the scheme, taxpayers can snag up to 100% relief on interest and penalties, plus hefty cuts on principal dues, scaled by demand size—making it a cornerstone of Punjab’s pro-business playbook.
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“This extension is our government’s pledge to a seamless compliance ecosystem, resolving dusty pre-GST disputes without the drag of red tape,” Cheema declared. “We’re building a pro-trader haven where genuine payers aren’t tripped by bureaucracy or bad timing.”
He called on eligible entities to seize this “golden window” for a debt-free fresh start, warning that post-March 31, the department will ramp up recovery drives against holdouts. “Clear the slate now, and step into FY 2026-27 unburdened,” Cheema urged, emphasizing the scheme’s focus on VAT, Central Sales Tax, and allied pre-GST liabilities.
