Punjab Govt extends One Time Settlement Scheme till March 2026, Reinforces its Pro-Business & Trader-Friendly Governance - Yes Punjab News

The Punjab government, under Chief Minister Bhagwant Singh Mann, has extended the ‘Punjab One-Time Settlement (OTS) Scheme for Recovery of Outstanding Dues, 2025’ to March 31, 2026, offering relief to the trading community and industry. This decision, approved by Finance Minister Harpal Singh Cheema, addresses concerns raised by stakeholders regarding overlapping tax filing deadlines and difficulties in determining liabilities before the original December 31, 2025, deadline.

As of date, 6,348 OTS applications have been received, with 4,365 approved, resulting in ₹65.81 Crore recovered and ₹245.26 Crore waived, totaling ₹311.07 Crore in tax, interest, and penalty. The scheme provides waivers of up to 100% on interest and penalty, and significant reductions on the principal tax amount, for taxpayers with dues under pre-GST Acts like VAT and Central Sales Tax.

Finance Minister Cheema emphasized the government’s commitment to a “pro-business environment” and urged eligible businesses and rice millers to utilize this final opportunity to settle arrears. He also warned that strict recovery proceedings will be initiated against defaulters after the new deadline.

(Source：Yes Punjab News)