In a significant relief to taxpayers having legacy outstanding tax liabilities, the Government of Haryana has extended the time limit for opting under the Haryana One Time Settlement Scheme for Recovery of Outstanding Dues, 2026, up to November 30, 2026. The extension provides eligible taxpayers additional time to settle their quantified outstanding dues under the Scheme.
The Excise and Taxation Department, Government of Haryana, has issued Notification No. 10/ST-1 dated September 28, 2026 for giving effect to the extension. The notification has been issued in exercise of the powers conferred under Section 3 of the Haryana Settlement of Outstanding Dues Act, 2017 (35 of 2017), read with sub-clause (1) of Clause 19 of the Haryana One Time Settlement Scheme for Recovery of Outstanding Dues, 2026.
As per the notification, the Government has extended the time limit specified in sub-clause (2) of Clause 4 of the Scheme up to November 30, 2026. Accordingly, eligible applicants who wish to avail the benefits of the OTS Scheme now have time until the revised deadline to exercise their option and complete the prescribed process.
The Haryana One Time Settlement Scheme for Recovery of Outstanding Dues, 2026 was originally notified vide Notification No. 07/ST-1 dated May 29, 2026 and came into force from June 1, 2026. Under Clause 4(2), an eligible applicant could opt for the Scheme in respect of one or more relevant Acts, with separate applications required for each Act and assessment year opted for settlement.
The Scheme covers quantified outstanding dues under specified legacy tax enactments, including the Haryana Value Added Tax Act, 2003; Central Sales Tax Act, 1956; Haryana Tax on Luxuries Act, 2007; Haryana Entertainment Duty Act, 1955; Haryana General Sales Tax Act, 1973; Haryana Local Area Development Tax Act, 2000; and Haryana Tax on Entry of Goods into Local Areas Act, 2008.
The OTS Scheme provides a mechanism for settlement of legacy outstanding dues with prescribed waivers and concessions, subject to fulfilment of its conditions. Among other provisions, the Scheme provides for waiver of interest and penalty upon successful settlement in eligible cases and permits payment of the settlement amount in lump sum or prescribed instalments.
The extension till November 30, 2026 offers another opportunity to eligible dealers and taxpayers to review their pending legacy tax demands and avail the settlement mechanism within the extended period.
The Notification can be accessed at: https://vat.haryanatax.gov.in/HEX/DownloadPDF?formName=/Notifications/Gazette148-2026Ext33767.pdf
