The Haryana GST Department has issued Frequently Asked Questions (FAQs) regarding the Haryana One Time Settlement Scheme for the Recovery of Outstanding Dues, 2025.
Q1: Who can opt for the Haryana One Time Settlement Scheme for the Recovery of Outstanding Dues, 2025 (OTS Scheme)?
Ans: The scheme is applicable only on Quantified Outstanding Dues in seven relevant Acts;
(i) The Haryana Value Added Tax Act, 2003 (6 of 2003);
(ii) The Central Sales Tax Act, 1956 (Central Act 74 of 1956);
(iii) The Haryana Tax on Luxuries Act, 2007 (23 of 2007);
(iv) The Haryana Entertainment Duty Act, 1955 (Punjab Act 16 of 1955);
(v) The Haryana General Sales Tax Act, 1973 (20 of 1973);
(vi) The Haryana Local Area Development Tax Act, 2000 (13 of 2000);
(vii) The Haryana Tax on Entry of Goods in to Local Areas Act, 2008 (8 of 2008).
Any person or assessee, whether registered or not, who has Quantified Outstanding Dues for the period upto 30.06.2017, can opt to avail the benefits of the OTS Scheme, 2025. [Clause 2 and clause 4]
Note: – It is to be noticed that the quantified outstanding dues must be for the period upto 30.06.2017 but may have been decided at any time as on the date of filing application OTS-1.
Q2: Who is not eligible to opt for the Scheme?
Ans:Â The following applicants shall not be eligible to opt for the scheme –
(i) against whom criminal proceedings have been initiated under the relevant Acts.
(ii) where the demand relates to erroneous refund(s) under the relevant Act.
(iii) whose application under the OTS Scheme 2023 has not been rejected till the appointed day of this scheme.
Such applicants shall not be eligible to opt under this scheme only for that particular year under that relevant Act wherein such proceedings are initiated. [Clause 16]
Q3: Whether a person is bound to opt for the OTS Scheme under all the relevant Acts?
Ans:Â No, a person may opt for OTS Scheme under all the relevant Acts or any of the Relevant Acts. He has to opt for all the years under a relevant Act wherein he has the Quantified Outstanding Dues. The cumulative amount of the quantified outstanding dues is to be taken into account under the scheme. [Clause 4(4) and Schedule-I]
Q4: What type of declaration is to be submitted by the applicant for declaring his cumulative amount under the relevant Act?
Ans:Â The applicant has to submit a self-declaration alongwith OTS-1 application that the information furnished by him in the application and other forms under the scheme are true & correct and no part of it is false and nothing has been concealed.
If the information submitted or Quantified Outstanding Dues for any year under the relevant Act for which he has applied is found concealed or incorrect, the application shall be rejected. [Clause 4(5) and 4(6)]
Q5: What is the meaning of term ‘Quantified Outstanding Dues’ under the OTS Scheme?
Ans:Â The term ‘Quantified Outstanding Dues’ has been defined in Section 2(d) of this Scheme which means any tax, interest, penalty or any other dues quantified under any of the relevant Act, unpaid by a person, for the period upto the 30th June, 2017.
The Quantified Outstanding Dues shall be determined assessment year wise and the slab for settlement under the scheme shall be determined as per Schedule-I & Schedule-IA of the Scheme.
Q6: Can an applicant apply for the OTS Scheme offline?
Ans: No. The applicant can only apply for the OTS Scheme through online mode by logging into the website www.haryanatax.gov.in by following the procedure prescribed under the Scheme.
Q7: How to apply for the OTS Scheme?
Ans: An applicant opting for settlement of quantified outstanding dues under this Scheme shall apply online in FORM OTS-1 along with proof of payment of the settlement amount or the first instalment, whichever is applicable. [Clause 4(4) and 6(5)]
Q8: Whether separate applications are to be submitted for settlement of quantified outstanding dues under different relevant Acts?
Ans:Â Yes, a separate application is required to be submitted by the applicant for each relevant Act. But the applicant has to apply for all the years under a relevant Act in one application. No Assessment Year wherein he has Quantified Outstanding Dues, is to be left. The cumulative amount of quantified outstanding dues is to be considered under this scheme.
Q9: What is period for opting for the OTS Scheme?
Ans:Â The applicant may opt for the scheme within 180 days from the appointed day i.e. 1st April, 2025. [Clause 1(2) and 7(2)] [Notification No.22/ST-1, dated 31.03.2025].
Q10: On which date, the Quantified Outstanding Dues are to be determined?
Ans:Â The Quantified Outstanding Dues shall be the quantified outstanding Dues for the period upto 30.06.2017 as on the date of application subject to conditions mentioned in other clauses of the scheme. [Clause 3(1)] The pre-conditions for determination of Quantified Outstanding Dues are described in clause 5 of the scheme.
Q11: May the demand and disposal register prescribed under the HVAT Act be approved for determination of Quantified Outstanding Dues?
Ans:Â Yes. It can be a proof for determining the Quantified Outstanding Dues only in the cases where no other record of assessment case is available. [Clause 3(3)] It should be duly certified by the jurisdictional authority.
Q12: How the slabs for working out the settlement amount are to be decided?
Ans:Â The slabs for working out the benefit of waiver of Rs.1 Lakh and the settlement amount in lieu of the quantified outstanding tax dues are based on the cumulative quantified outstanding tax dues under a relevant Act. The method of disclosing the quantified outstanding dues is described in Schedule-I which is as under: –
Schedule – I
See clause 3 (2)
| Sr. No. | Name of the Act | Determination of slab of total quantified outstanding dues under a relevant Act | ||||
| Assessment Year(s) | Total quantified outstanding dues (including tax, interest & penalty) | Tax amount due out of column (D) | Interest amount due out of column (D) | Penalty amount due out of column (D) | ||
| (A) | (B) | (C) | (D) | (E) | (F) | (G) |
| 1 | Only one relevant Act | For example 2017-18 (upto 30.06.2017) | ||||
| 2016-17 | ||||||
| 2015-16 | ||||||
| So on (Quantified outstanding dues for all the year must be included) | ||||||
| Grand Total | ||||||
Â
Q13: What are the benefits of this OTS Scheme?
Ans:Â The amount of interest & penalty (including inheres leviable) under any section of the relevant Act is completely waived off. A waiver of Rs.1 Lakh is also available to the applicants who have cumulative Quantified Outstanding Tax Dues upto Rs.10 Lakh. This waiver is not available in any other slab of the cumulative Quantified Outstanding Tax Dues. For availing the benefit under the scheme, the applicant willing to avail any of the benefits under the scheme, he has to make an application under the scheme. The waiver shall be separately calculated for each of the relevant Acts.
The applicant is required to pay only prescribed percentage of quantified outstanding tax dues as per the Schedule-IA of the OTS Scheme as under: –
Schedule – I A
[see clause 6(1)]
Determination of settlement amount in lieu of quantified outstanding dues Slab of total
| Sr. No. | Slab of total quantified outstanding tax due as grand total of column (E) of Schedule-I (in Rs.) | Waiver as per clause 6(3) of the scheme | Tax due for settlement under the scheme column (2) – column (3) | Settlement amount of Tax dues as in column (4) | Settlement amount of Interest as in column (F) of Schedule I | Settlement amount of Penalty as in column (G) of Schedule I |
| (1) | (2) | (3) | (4) | (5) | (6) | (7) |
| 1. | Upto Rs. 10,00,000 (Ten Lakh) | Rs. 1,00,000 (One Lakh) | 40% | 0% | 0% | |
| 2. | Above Rs. 10,00,000 (Ten Lakh) to Rs. 10,00,00,000 (Ten Crore) | 0 | 50% | 0% | 0% | |
| 3. | Above Rs. 10,00,00,000 (Ten Crore) | 0 | 100% | 0% | 0% |
Q14: Whether the applicant is required to pay full amount of quantified outstanding dues at the time of applying for the OTS Scheme?
Ans: No. The applicant may opt to make payment for settlement of his quantified outstanding dues in lumpsum or in instalments as per the option available in Schedule-II of the OTS Scheme. The first instalment is to be made with the OTS-1 application and the second instalment within 60 days from the issuance of interim order in FORM OTS-4A. [Clause 6(7) and 6(8)]
Q15: What will be the fate of the application in case the applicant fails to make the payment of instalment within the period prescribed under the Scheme?
Ans:Â If payment of instalment is not made within the period prescribed under the Scheme i.e. 60 days from the issuance of OTS-4A, the application shall be liable to be rejected and the amount paid with OTS-1 by the applicant shall be adjusted against his liabilities under the relevant Act and such amount shall not be refunded in any case. It will be presumed that the applicant has never made any application. [Clause 4(4)]
Q16: Under which Treasury Head the settlement amount is to be deposited by the applicant opting for the Scheme?
Ans:Â The amount is to be deposited under the Treasury Head of the relevant Act as mentioned below: –
| Sr. No. | Name of the relevant Act | Treasury Head |
| 1 | The Haryana Value Added Tax Act, 2003 | 0040-51-102-99-51 |
| 2 | The Central Sales Tax Act, 1956 | 0040-51-101-99-51 |
| 3 | The Haryana Local Area Development Tax Act, 2000 | 0042-51-106-51-51 |
| 4 | The Haryana Tax on Entry of Goods into Local Area Act, 2008 | 0042-51-106-51-51 |
| 5 | The Haryana Tax on Luxuries Act, 2007 | 0045-51-105-51-51 |
| 6 | The Punjab Entertainment Duty Act, 1955 | 0045-51-111-98-51 |
| 7 | The Haryana General Sales Tax Act, 1973 | 0040-51-102-99-51 |
Q17: What kind of order will be issued by the Department to the applicant opting for the Scheme for settlement of quantified outstanding dues?
Ans:Â As per Clause 8 of the OTS Scheme, the Jurisdictional Authority i.e. Excise & Taxation Officer of the concerned jurisdictional ward shall issue an order of settlement or order of rejection to the applicant.
Q18: What are the benefits in case the applicant gets the final order of settlement?
Ans:Â The applicant shall not be liable to pay any further tax, interest, or penalty with respect to the matter and time period covered in the final order of settlement and not be prosecuted under the relevant Act with respect to the matter and time period covered in the order. Further, all the matters and time period covered by such order shall not be re-opened in any other proceedings under the relevant Act. [Clause 10]
Q19: Are the person whose dues are quantified outstanding under the relevant acts and against whom recovery proceedings have been initiated by the jurisdictional authority under HGST Act, 2017 eligible to opt for OTS Scheme?
Ans:Â Yes. The applicants against whom the jurisdictional authority has initiated recovery proceedings by way of uploading FORM GST DRC-07A under the GST Act, 2017 are also eligible to take benefit of the scheme. [Clause 9]
Q20: Whether any payment made before the appointed day will be adjusted under the Scheme?
Ans:Â No. Any amount of tax, interest or penalty or any other sum paid by the applicant before the appointed day shall not be adjusted out of the settlement amount under this scheme, nor be refunded under the scheme. [Clause 11]
Q21: Can a person or assessee whose appeal is pending before the appellate authority under the relevant Act, High Court, or Supreme Court apply for the Scheme?
Ans:Â Yes. A person or assessee whose appeal is pending before the appellate authority under the relevant Act, High Court or Supreme Court can apply for the Scheme provided he shall withdraw the appeal fully and un-conditionally within 60 days from provisional order OTS-4A and submit the proof of such withdrawal of appeal before the jurisdictional authority. [Clause 7(1) and 8(e) & (f)]
Q22: What should be the proof of withdrawal of appeal to be submitted by a person or assessee before the jurisdictional authority?
Ans:Â The order of Appellate Authority under the relevant Act or order of High Court or Supreme Court regarding withdrawal of appeal by an applicant will be treated as a proof of withdrawal of appeal.
Q23: Whether the quantified outstanding dues can be paid through utilization of Input Tax Credit?
Ans:Â Any amount payable under the Scheme shall neither be paid through Input tax nor shall be allowed to be claimed as Input tax by any person under the relevant Act or any other Act. [Clause 12] The settlement amount payable under the scheme shall be paid through cash payment only.
Q24: Can the final orders passed by the jurisdictional authority under the Scheme be challenged?
Ans:Â No appeal shall lie before any Appellate Authority under the relevant Act, High court or Supreme Court against the final orders passed by the jurisdictional authority under the Scheme. [Clause 17]
Q25: Who is the competent authority for removal of any doubt or any difficulty under the Scheme?
Ans:Â In case of any doubt arising out of the Scheme, the decision of the Excise and Taxation Commissioner, Haryana shall be final. [Clause 15]
If any difficulty arises in giving effect to any provision of this scheme, the government has power to remove the said difficulty by a general or a specific order. [Clause 14]
Q26: Who is the competent authority for extension of time period of the OTS Scheme?
Ans:Â As per the clause 7(2) of the OTS scheme, an applicant may opt for the scheme within 180 days from the appointed day. However, the government either on its own motion or on representation from stakeholders may extent the time period for availing the benefit of the scheme. [Clause 18(1)]
Q27: Who is the competent authority to extend time period for issuance of any notice or any order under the OTS scheme?
Ans:Â Joint Excise & Taxation Commissioner (Range) on case to case basis may extend time period for issuance of notice or order by the Jurisdictional Authority or allocation of correct ward by the DETC for a period of not more than 30 days. [Clause 18(2)]
Q28: Is there any provision for rectification of order on notice under the OTS Scheme?
Ans:Â Yes. Under the provision of the OTS scheme, only the final order of acceptance or rejection of the application may be rectified. The Jurisdictional Authority may either on his own motion or on the request of the effected person may rectify the final order within a period of 45 days of the issuance of final order. [Clause 13]
Q29: What kind of error may be rectified by the Jurisdictional Authority?
Ans:Â Only error which is apparent on the face of record may be rectified. The Jurisdictional Authority, at any time within a period of 45 days of the issuance of final order passed by it, may rectify such error apparent on the face of the record in such order.
The FAQs can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/04/Haryana_New_2025_FAQs_for_the_OTS_2025_Scheme.pdf
