The Haryana Excise and Taxation Department, vide Notification No. 21/ST-1 dated March 27, 2025, notifies the following scheme, namely the Haryana One Time Settlement Scheme for Recovery of Outstanding Dues 2025, for recovery of quantified outstanding dues for the period as specified in the Act, subject to conditions and restrictions.
Scheme Introduction: The Haryana One Time Settlement Scheme for Recovery of Outstanding Dues 2025 is introduced under the Haryana Settlement of Outstanding Dues Act, 2017 to recover outstanding dues quantified up to 30 June 2017.
Short Title and Commencement: The scheme is officially named the Haryana One Time Settlement Scheme for Recovery of Outstanding Dues, 2025 and will come into force on a date appointed by the Government through an official gazette notification. Different dates may be appointed for different relevant Acts.
Scope and Application: The scheme applies to several Acts, 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.
Settlement Amount and Waivers: Applicants can settle their quantified outstanding dues by paying a settlement amount as per Schedule-I A. Interest and penalty under any section of the relevant Act are waived off for the particular year if the application is found in order. Applicants with cumulative outstanding tax dues up to Rs. 10 lakhs for all assessment years under a relevant Act can get a waiver of Rs. 1 lakh if the application is successful.
Application Procedure: Applicants with quantified outstanding dues under the relevant Act can apply online in Form OTS-1 within 180 days from the appointed day, along with proof of payment of the settlement amount or the first instalment. A system-generated acknowledgement in Form OTS-2 will be issued electronically.
Verification and Processing: The jurisdictional authority will verify the application in Form OTS-1 and issue a settlement order in Form OTS-4 or a provisional settlement order in Form OTS-4A. If deficiencies are found, a deficiency notice in Form OTS-3 will be issued, and the applicant must respond in Form OTS-3A within 15 days.
Payment Options: Applicants can pay the settlement amount either in lump sum or in instalments as listed in Schedule-II. The second instalment must be paid within 60 days from the date of the provisional order of settlement along with information in Form OTS-1A.
Appeal Withdrawal: Applicants must withdraw any pending appeals or cases before the appellate authority, Haryana Tax Tribunal, Punjab and Haryana High Court, or Supreme Court under the relevant Act within 60 days of receiving the provisional order of settlement in Form OTS-4A.
Final Order Privileges: The final order of settlement passed under the scheme is conclusive, and the applicant is not liable to pay any further tax, interest, or penalty or be prosecuted under the relevant Act for the covered period. However, if any material particular in the application is found to be false, the settlement order can be revoked.
Ineligibility and Restrictions: Certain applicants, such as those with erroneous refunds, criminal proceedings initiated, or those who applied for the 2023 scheme without rejection, are not eligible for benefits under this scheme. No appeal can be made against the final order of settlement or rejection under the scheme.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/03/Haryana-GST-NN-Vat-27.03.2025.pdf
