Photo Source: Babushahi Bureau
Punjab extends One-Time Settlement till Sept 30; Grants Rs 534.54 crore tax relief so far
Babushahi Bureau
Chandigarh, July 31, 2026: The Punjab Government has extended the deadline for its One-Time Settlement (OTS)-2025 Scheme for pre-GST tax dues until September 30, 2026, offering eligible taxpayers a final opportunity to settle pending tax liabilities and avail substantial relief.
Punjab Finance, Excise and Taxation Minister Advocate Harpal Singh Cheema said the scheme had received a strong response, with taxpayers depositing ₹167.23 crore, while the state government had provided relief worth ₹534.54 crore through waivers in tax, interest and penalties.
As of July 30, the Excise and Taxation Department had received 9,782 applications involving a total tax demand of ₹437.51 crore, Cheema said.
“The extension will allow remaining eligible taxpayers to resolve long-pending disputes and benefit from significant statutory relief,” the minister said, adding that the scheme was aimed at helping businesses move forward without the burden of legacy tax disputes.
Cheema urged the remaining 9,386 eligible taxpayers to make use of the extended window before the September 30 deadline. Under the scheme, taxpayers can receive a 100 per cent waiver on applicable interest and penalties, along with relief on the principal tax amount according to the relevant slab.
The minister clarified that September 30 would be the final deadline and that no further extension would be granted.
At the same time, the department has intensified recovery proceedings against habitual VAT defaulters. Cheema said more than ₹12.39 crore had been recovered through enforcement measures, including property attachments and recovery proceedings. Several taxpayers opted to settle their dues under the OTS scheme after enforcement action was initiated, he added.
The department has also scheduled 13 auction proceedings in August 2026 to recover outstanding tax dues of approximately ₹48.48 crore. Taxpayers facing auction proceedings have been advised to settle their liabilities under the OTS scheme before their respective auction dates.
Cheema warned that after the final deadline, the department would step up recovery action under applicable tax laws and the Punjab Land Revenue Act, including the freezing of bank accounts and auction of properties.
The Finance Minister also highlighted the department’s support for the Supreme Court’s SAMADHAN initiative, under which 12 major tax disputes have been resolved amicably, while four more cases are expected to be taken up for settlement.
Cheema said the government was pursuing a balanced approach by providing businesses an opportunity to settle old disputes while taking firm action against persistent tax defaulters to protect public revenue.