‘PUNJAB ONE TIME SETTLEMENT SCHEME FOR RECOVERY OF OUTSTANDING DUES, 2025’ WILL BE EFFECTIVE FROM OCTOBER 1, 2025, TO DECEMBER 31, 2025
AIMS TO RESOLVE APPROX 20,039 PENDING CASES INVOLVING OUTSTANDING DUES OF NEARLY RS 11,968.88 CRORE ACROSS VARIOUS PRE-GST ACTS
Chandigarh, September 24
Punjab Finance, Planning, Excise and Taxation Minister Advocate Harpal Singh Cheema announced that the ‘Punjab One Time Settlement Scheme for Recovery of Outstanding Dues, 2025’ will be effective from October 1, 2025, to December 31, 2025, and this scheme aims to resolve approximately 20,039 pending cases involving outstanding dues of nearly Rs 11,968.88 crore across various pre-GST acts, providing substantial relief to the state’s trade and industry
Announcing this One Time Settlement Scheme (OTS), the Finance Minister Harpal Singh Cheema said that this initiative, approved by the Punjab Cabinet led by Chief Minister Bhagwant Singh Mann in today’s cabinet meeting, marks the third such scheme offered by the AAP-led Punjab Government, and it will be the final opportunity for taxpayers to settle their outstanding dues. He said that after January 1, 2026, recovery proceedings will commence for those who fail to opt for this scheme. “The pending cases span multiple pre-GST acts, including the Punjab VAT Act, the Central Sales Tax Act, and others, We have structured this scheme to offer substantial waivers on interest and penalties, making it an attractive proposition for all eligible taxpayers”, said Cheema.
Highlighting the key features of the scheme, the Finance Minister said that the scheme offers a tiered waiver structure based on the demand amount. “For outstanding demands up to Rs 1 crore, taxpayers will receive a 100% waiver on interest and penalty, along with a 50% waiver on the tax amount. For demands between Rs 1 crore and Rs 25 crore, there will be a 100% waiver on interest and penalty, and a 25% waiver on the tax amount. In cases with demands exceeding Rs 25 crore, we are providing a 100% waiver on interest and penalty with a 10% waiver on the tax amount”, he added.
Emphasising the expected outcome of the initiative, the Finance Minister said “If all eligible taxpayers avail this scheme, we anticipate a recovery of approximately Rs 3,344.50 crore for the state while waiving over Rs 8,441.56 crore in old dues.” He said that this scheme is applicable to all taxpayers whose assessment orders were framed by September 30th, 2025, and it will not apply to government food agencies. He urged all eligible businesses to take advantage of this initiative before the deadline of December 31st, 2025.
The Finance Minister Harpal Singh Cheema said that the AAP led Punjab Government is committed to clearing the backlog of legacy tax cases to foster a more business-friendly environment in Punjab. He said that this new One Time Settlement scheme is a progressive step that will not only reduce the compliance burden on taxpayers but also streamline the state’s tax administration.
