Punjab Finance Minister Harpal Singh Cheema extends OTS Scheme to March 31, 2026, offering businesses relief from pre-GST tax disputes.

The Punjab government has extended the One-Time Settlement (OTS) Scheme’s deadline for collecting past-due taxes till March 31, 2026. For taxpayers with outstanding pre-GST (Goods and Services Tax) obligations, this would be a huge relief.

Businesses will be able to resolve legacy disputes pertaining to Central Sales Tax, VAT, and other pre-GST legislation thanks to the initiative. By doing this, needless lawsuits will be avoided.

According to reports, Punjab’s Finance Minister Harpal Singh Cheema stated that the deadline extension was the result of feedback from several stakeholders.

“The industry and commercial community are relieved by the extension. In the last few months, taxpayers have to deal with a significant statutory compliance burden.

Also read: Aman Arora Announces 54 New Service Centers, Boosting Citizen-Centric Governance

In October 2025, the program was unveiled. This aims to liberate blocked earnings and cut down on lengthy litigation.

Depending on the level of demand, it offers taxpayers a simple and cost-effective route out of protracted disputes, enabling them to receive a 100% waiver of interest and penalties in addition to the principle tax amount.

The minister has advised rice millers and other qualified businesses to take advantage of this final opportunity to settle their debts and begin the upcoming fiscal year tax-free.

Value-added tax (VAT) arrears were settled and 62.29 crore was collected from 44,503 traders that applied under Punjab’s OTS scheme in 2024. Likewise, the OTS plan for 2025 will benefit the government more.