Chandigarh, Jan 1: The Punjab government has extended the deadline for its one-time settlement (OTS) scheme for pending tax dues to March 31, offering additional time to traders and industrial units to resolve pre-GST disputes.
Finance Minister Harpal Singh Cheema announced the decision on Thursday, saying the extension was cleared after repeated representations from stakeholders, including the GST Practitioners Association of Punjab. The scheme was earlier scheduled to close on December 31.
“The government has decided to extend the OTS scheme till March 31 to provide relief to taxpayers facing genuine difficulties,” Cheema said. “This step is aimed at easing compliance and encouraging voluntary settlement of long-pending tax disputes.”
Launched on October 1, the scheme applies to cases under the Punjab VAT Act and the Central Sales Tax Act from the pre-GST period. It allows eligible taxpayers to settle disputes with major relief, including up to 100% waiver of interest and penalties and a reduced principal tax amount, depending on the category of the case.
According to Cheema, 6,348 applications have already been filed under the scheme, indicating strong participation from the trading community.
Officials said multiple overlapping tax deadlines towards the end of 2025, along with delays in the service of VAT assessment orders, made it difficult for businesses to calculate their liabilities within the earlier timeframe.
Cheema urged traders, industrial units and rice millers with pending dues to use the extended window. “This is a final opportunity to settle old cases on concessional terms,” he said.
He added that the government would initiate strict recovery proceedings against defaulters who fail to opt for the scheme after March 31.
