The Governor of Haryana, exercising powers under Section 3 of the Haryana Outstanding Dues Management Act, 2017 (Act No. 35 of 2017), has notified the Haryana Ek Baargi Vyavasthapan Scheme, 2026 — officially titled the Haryana One Time Settlement Scheme for Recovery of Outstanding Dues, 2026 — vide Notification No. 07/EST-1, dated May 29, 2026, published in the Haryana Government Gazette (Extraordinary), No. 82-2026/Ext., Chandigarh. The Scheme shall come into force with effect from 1st June, 2026.
OBJECTIVE OF THE SCHEME
The Scheme has been introduced to facilitate expeditious recovery of outstanding tax dues pertaining to the pre-GST regime. It provides an opportunity to taxpayers, assessees, and other persons liable to pay dues under the relevant tax laws of Haryana for any period up to 30 June 2017 to settle their arrears by paying a Settlement Amount as prescribed under the Scheme, after availing applicable waivers on interest, penalty, and tax.
LAWS COVERED UNDER THE SCHEME
The Scheme is applicable to outstanding dues under the following seven legislations:
| S. No. | Name of Act | Act Reference |
| 1. | Haryana Value Added Tax Act, 2003 | Act No. 6 of 2003 |
| 2. | Central Sales Tax Act, 1956 | Central Act No. 74 of 1956 |
| 3. | Haryana Tax on Luxuries Act, 2007 | Act No. 23 of 2007 |
| 4. | Haryana Entertainment Duty Act, 1955 | Punjab Act No. 16 of 1955 |
| 5. | Haryana General Sales Tax Act, 1973 | Act No. 20 of 1973 |
| 6. | Haryana Local Area Development Tax Act, 2000 | Act No. 13 of 2000 |
| 7. | Haryana Tax on Entry of Goods into Local Areas Act, 2008 | Act No. 8 of 2008 |
KEY BENEFITS AND WAIVERS
- Full Waiver for Small Dues: Where the determined outstanding tax dues of an assessee under any relevant Act for any specific assessment year do not exceed ₹1,00,000 (Rupees One Lakh), the entire outstanding amount — including interest and penalty — shall be waived off for that assessment year. Such assessees are not required to file an application under the Scheme to avail this benefit.
- Standard Waiver (Schedule-I): All applicants are entitled to a standard waiver on their Net Tax Demand as per the slab-based table in Schedule-I appended to the Scheme. Slabs range from 100% waiver for dues up to ₹1 lakh, progressively to 0% waiver for dues above ₹60 crore, ensuring relief commensurate with the size of outstanding dues.
- Full Waiver of Interest and Penalty: For all assessment years for which an applicant files under the Scheme and whose application is found correct, the interest and penalty levied under any provision of the relevant Act shall be fully waived.
- Document-Based Waiver (DLW): An additional Document-Based Waiver (DLW) is available to applicants whose dues have arisen due to non-submission of statutory declaration forms (VAT D-1, VAT D-2, Tax Invoice/G-4, Form-G, Form-Ch, Form-J, E-1 and E-2) under the relevant Acts. This benefit is available for dues under the Haryana VAT Act, 2003, and the Central Sales Tax Act, 1956 only, subject to verification of the submitted statutory forms.
SETTLEMENT AMOUNT — SLAB STRUCTURE (SCHEDULE-I)
The standard waiver on net tax demand is structured on the following slabs:
| Limits | Standard Waiver on Tax | Effective Tax Payable |
| Up to ₹1 Lakh | 100% | Nil |
| Above ₹1 Lakh up to ₹10 Lakh | 60% | 40% of demand |
| Above ₹10 Lakh up to ₹1 Crore | 50% | 50% of demand |
| Above ₹1 Crore up to ₹10 Crore | 40% | 60% of demand |
| Above ₹10 Crore up to ₹30 Crore | 35% | 65% of demand |
| Above ₹30 Crore up to ₹60 Crore | 30% | 70% of demand |
| Above ₹60 Crore | 0% | Full demand payable |
PAYMENT OPTIONS — LUMP SUM OR INSTALMENTS
Applicants may pay the Settlement Amount either as a lump sum or in instalments as prescribed under Schedule-II of the Scheme. The instalment structure is as follows:
| Limits | Payment with OTS-1 Application | 2nd Instalment | 3rd Instalment |
| Up to ₹5 Lakh | 100% (Full Payment) | — | — |
| Above ₹5 Lakh up to ₹25 Lakh | 50% | 50% within 60 days of OTS-4k order | — |
| Above ₹25 Lakh | 40% | 30% within 60 days of OTS-4k order | 30% within 120 days of OTS-4k order |
Applicants opting for the instalment route may also pay a delayed second instalment with additional simple interest at the rate of 18% per annum for the period of delay, up to the due date of the third instalment.
HOW TO APPLY
Eligible taxpayers are required to register on the portal of the Haryana Excise and Taxation Department using their e-mail ID, mobile number, and other required details. Upon successful registration, a One Time Password (OTP) and a unique User ID will be generated and communicated. Applications (Form OTS-1) must be submitted electronically through the Department’s portal, duly signed with a valid Electronic Verification Code (EVC). Applicants seeking Document-Based Waiver must also submit physical statutory forms to the concerned Authorised Authority (Ward) within seven days of online submission.
Applications must be filed within 120 days of the notified date (i.e., on or before 28 September 2026), with the Government retaining the power to extend the deadline.
ELIGIBILITY AND EXCLUSIONS
The Scheme is open to all assessees — registered or unregistered — with outstanding dues under any of the seven relevant Acts for any period up to 30 June 2017. Applicants with dues pending before appellate authorities, the Haryana Tax Tribunal, Punjab and Haryana High Court, or the Supreme Court are also eligible, provided they unconditionally withdraw all such appeals within 60 days of the final settlement order in Form OTS-4k.
The following categories of applicants are NOT eligible under the Scheme for a specific assessment year:
- Cases involving a demand relating to erroneous refund;
- Cases where criminal prosecution has been initiated for that specific year under the relevant Act;
- Applicants who had availed benefits under the Haryana Lump Sum Settlement Scheme, 2023 or the One Time Settlement Scheme, 2025, if such application was not rejected by the notified date.
LINKAGE WITH HARYANA GST ACT, 2017
Applicants whose pre-GST outstanding dues have been uploaded in Form GST DRC-07k under the Haryana Goods and Services Tax Act, 2017 are also eligible under the Scheme. Upon successful issuance of the Settlement Order in Form OTS-4, the Authorised Authority shall modify the demand created through Form GST DRC-07k and issue Form GST DRC-08k under the Haryana GST Rules, 2017.
FINALITY OF SETTLEMENT ORDER
The final Settlement Order issued under the Scheme shall be conclusive in respect of the matters and periods covered therein. Once the final order is issued, the applicant shall not be liable to pay any additional tax, interest, or penalty for the covered periods, nor shall they be prosecuted under the relevant Act for those periods. No appeal shall lie against the final settlement or rejection order passed by the Authorised Authority.
OTHER CONDITIONS
- No Refund: Any amount paid before the notified date as tax, interest, or penalty shall not be refunded or adjusted against the Settlement Amount under the Scheme.
- No Input Tax Credit: The Settlement Amount paid shall not be claimed as Input Tax Credit (ITC) under any Act, nor shall it be treated as input tax by any person.
- Non-Refundable: Settlement Amount paid at any stage under the Scheme is non-refundable under any circumstances and shall be adjusted against the outstanding dues of the applicant.
The Notification can be accessed at: https://haryanatax.gov.in/HEX/DownloadPDF?formName=/Notifications/OTS26Final.pdf
