Punjab finance and taxation minister Harpal Singh Cheema on Friday highlighted the success of the One-Time Settlement of Outstanding Dues Scheme, 2025 (OTS-2025), stating that it had already enabled the recovery of ₹110 crore while delivering significant financial relief to the trading community across the state.
The OTS Scheme was introduced on October 1, 2025, with the objective of resolving long-pending tax disputes under the pre-GST Acts, including VAT and Central Sales Tax.
Cheema said the taxation department received 7,654 applications since the scheme’s launch, resulting in unprecedented waivers amounting to ₹38,477 crore.
Further, in response to industry feedback, the finance minister said, the last date for availing of the scheme had been extended from December 31, 2025, to March 31, 2026.
“This extension has been granted in view of the positive momentum of the scheme and in response to representations from industry associations,” he said, adding that the overwhelming response reflected the state government’s policy of prioritising voluntary compliance over prolonged litigation.
Reiterating the state government’s commitment to ease of doing business and the creation of a trader-friendly tax environment, Cheema said the scheme offered a complete 100% waiver of interest and penalty across all categories, which significantly eased the financial burden on businesses.
He explained that the scheme also provided substantial slab-wise waivers on the primary tax, stating, “There is a 50% waiver for demands up to ₹1 crore, 25% waiver for demands between ₹1 crore and ₹25 crore, and 10% waiver for demands exceeding ₹25 crore.”
He added that similar graded relief was available for demands under Section 14-B of the Punjab General Sales Tax Act, 1948, and Section 51 of the Punjab VAT Act, 2005.”
Appealing to traders and taxpayers to avail of the benefit of the scheme, the minister urged all eligible taxpayers to make full use of this one-time opportunity to regularise their past dues and contribute to the state’s revenue in a cooperative spirit. He further stated that, apart from government food grain agencies, all taxpayers were eligible to apply under the scheme by submitting Form OTS-01 at the office of the jurisdictional assistant commissioner of state taxes (ACST).
