Finance Minister Harpal Singh Cheema approves extension for Punjab One-Time Settlement, allowing resolution of legacy tax dues.
The Punjab government, under the leadership of Chief Minister Bhagwant Singh Mann, has agreed to extend the deadline for the “Punjab One-Time Settlement (OTS) Scheme for Recovery of Outstanding Dues, 2025″ until March 31, 2026, which is a significant relief to the state’s business community.
Harpal Singh Cheema, the minister of finance, planning, excise, and taxation for Punjab, formally approved this extension after hearing arguments from a number of parties, including the GST Practitioners Association (GSTPA) Punjab.
The ruling was made in response to the significant statutory compliance load that taxpayers had to deal with in November and December of 2025 due to overlapping tax reporting deadlines. Furthermore, many qualified taxpayers had difficulty figuring out their precise liabilities before to the initial December 31, 2025, deadline due to practical issues such the pending service of VAT assessment orders.
4,365 of the 6,348 OTS applications that have been received so far have been granted; these applications total ₹311.07 crore in tax, interest, and penalties.Of this sum, ₹245.26 Crore has been waived and ₹65.81 Crore has been recovered under the OTS system.
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With the goal of lowering legacy litigation and releasing blocked revenue for the state, the OTS Scheme-2025, which was launched on October 1, continues to be one of the most taxpayer-friendly programs. Taxpayers can receive substantial exemptions on the principal tax amount and up to a 100% waiver on interest and penalties, depending on the demand amount.
According to Cheema, this extension would give legitimate taxpayers a fantastic opportunity to resolve long-standing complaints under the pre-GST Acts (such as VAT and Central Sales Tax) without having to worry about the legal process.”Our government is committed to fostering a pro-business environment,” the Minister continued. We are making sure that no legitimate taxpayer is left behind because of administrative or scheduling issues by extending this deadline to March 31, 2026.
He encouraged all qualified companies and rice millers to take advantage of this last opportunity to pay off their debts and begin the new fiscal year with a fresh start. Minister Cheema stated, “The department will initiate strict recovery proceedings against defaulters who fail to opt for this settlement after the new deadline of March 31, 2026.”