In response to requests from stakeholders, including the GST Practitioners Association (GSTPA) Punjab, the Punjab government has decided to extend the deadline for the Punjab One-Time Settlement (OTS) Scheme for Recovery of Outstanding Dues of 2025 until March 31. State Finance Minister Harpal Cheema approved this extension, citing the heavy compliance burden faced by taxpayers in the final months of 2025. The department has received 6,348 applications to date, prompting the deadline extension.
The OTS Scheme – 2025, launched on October 1, aims to reduce legacy litigation and generate revenue for the state by providing significant relief to taxpayers. Eligible businesses can benefit from up to a 100% waiver on interest and penalties, along with substantial waivers on the principal tax amount. Minister Cheema emphasized that this extension offers genuine taxpayers an opportunity to settle long-pending disputes without procedural stress.
The Minister highlighted the government’s commitment to creating a favorable business environment and urged eligible businesses and rice millers to take advantage of the extended deadline to clear their arrears. After March 31, 2026, the department will initiate strict recovery proceedings against defaulters who do not opt for this settlement, warned Minister Cheema.
