Chandigarh- In a serious reduction to the buying and selling neighborhood and trade of the state, the Punjab Authorities, led by Chief Minister Bhagwant Singh Mann, has determined to increase the deadline for the ‘Punjab One-Time Settlement (OTS) Scheme for Restoration of Excellent Dues, 2025’ till March 31, 2026.
Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema gave the formal approval for this extension following representations from numerous stakeholders, together with the GST Practitioners Affiliation (GSTPA) Punjab. The choice is available in response to the heavy statutory compliance burden confronted by taxpayers throughout November and December 2025, which noticed overlapping deadlines for numerous tax filings. Moreover, sensible challenges such because the pending service of VAT evaluation orders had made it tough for a lot of eligible taxpayers to find out their actual liabilities earlier than the unique December 31, 2025, deadline.
Until date, 6,348 OTS purposes have been acquired, out of which 4,365 purposes have been authorized, involving tax, curiosity, and penalty amounting to ₹311.07 Crore.Out of this quantity, ₹65.81 Crore has been recovered as per the OTS scheme, whereas ₹245.26 Crore has been waived.
The OTS Scheme-2025 initiated on October 1, stays one of the crucial taxpayer-friendly initiatives, aimed toward decreasing legacy litigation and unlocking blocked income for the state. Relying on the demand quantity, taxpayers can avail as much as a 100% waiver on curiosity and penalty and important waivers on the principal tax quantity.
Cheema mentioned that this extension would present a golden probability for real taxpayers to settle long-pending disputes underneath pre-GST Acts (together with VAT and Central Gross sales Tax) with out procedural stress.The Minister additional added, “Our authorities is dedicated to fostering a pro-business setting. By extending this deadline to March 31, 2026, we’re guaranteeing that no real taxpayer is left behind on account of administrative or timing hurdles.”
He urged all eligible companies and rice millers to make the most of this last window to clear their arrears and begin the brand new monetary yr with a clear slate. “After the brand new deadline of March 31, 2026, the division will provoke strict restoration proceedings towards defaulters who fail to go for this settlement,” mentioned Minister Cheema.
