Punjab extends deadline for one-time due settlement for traders

The Punjab government has extended the deadline for its Punjab One-Time Settlement (OTS) Scheme for Recovery of Outstanding Dues of 2025 until March 31, 2026. This decision, approved by Finance Minister Harpal Singh Cheema, follows requests from stakeholders like the GST Practitioners Association (GSTPA) Punjab and is based on the 6,348 applications received so far. The government recognized that taxpayers faced difficulties due to overlapping tax filing deadlines and pending VAT assessment orders in late 2025, hindering their ability to determine liabilities before the original December deadline.

The OTS Scheme, launched on October 1, offers significant waivers – up to 100% on interest and penalties, and substantial reductions on the principal tax amount – to reduce legacy litigation and boost state revenue. Minister Cheema emphasized that the extension provides a “golden chance” for taxpayers to resolve disputes under pre-GST Acts like VAT and central sales tax without procedural difficulties.

Cheema stated the government’s commitment to a pro-business environment and urged eligible businesses, including rice millers, to utilize this final opportunity to settle arrears. He also warned that strict recovery proceedings would be initiated against defaulters after the new deadline, ensuring that those who do not take advantage of the scheme will face consequences.

(Source：5 Dariya News)