Chandigarh: Punjab Finance, Excise, and Taxation Minister Advocate Harpal Singh Cheema announced on Friday that the Punjab One-Time Settlement (OTS-2025) Scheme for pre-GST tax dues has received an overwhelming response, with ₹167.23 crore deposited by taxpayers and ₹534.54 crore granted in tax, interest, and penalty relief so far. Citing strong demand from taxpayers, the Finance Minister said, “The Punjab Government is offering one final opportunity and has decided to extend OTS-2025 from July 31, 2026 to September 30, 2026, to enable remaining eligible taxpayers to settle long-pending disputes and avail significant statutory relief.
Giving details about the scheme’s performance in a press communique issued here, Finance Minister Harpal Singh Cheema said, “As of July 30, 2026, the Excise and Taxation Department has received 9,782 applications involving a total tax demand of ₹437.51 crore. Against these applications, taxpayers have deposited ₹167.23 crore, while the state government has provided substantial relief amounting to ₹534.54 crore through waivers. These figures reflect the strong confidence reposed by taxpayers in the government’s transparent and business-friendly policies, aimed at helping local enterprises start afresh without the weight of legacy tax disputes.”
The Excise and Taxation Minister emphasised that while the state government remains fully dedicated to welfare-oriented initiatives, it is equally firm on safeguarding public revenue from persistent defaulters. He said, “The Taxation department has simultaneously intensified recovery operations against habitual VAT defaulters through property attachments and auctions. Over ₹12.39 crore has already been recovered through these enforcement proceedings, with many taxpayers opting to settle their dues under the OTS Scheme immediately after recovery or auction actions were initiated against them.”
Addressing the remaining 9,386 eligible taxpayers, the Excise and Taxation Minister Cheema urged them to take immediate advantage of the extended deadline before September 30, 2026, to secure a 100 percent waiver on interest and penalties, alongside significant principal tax waivers depending on their applicable slab. He clarified that voluntary compliance is the most economical route for businesses, adding a strong reminder that this extension is strictly final and no further grace period will be granted. “Once the extended window closes, the department will aggressively enforce coercive recovery measures under tax laws and the Punjab Land Revenue Act, including bank account freezes and property auctions”, he warned.
To demonstrate the ongoing enforcement drive, the Excise and Taxation Minister disclosed that the department has already scheduled 13 auction proceedings for August 2026, targeting outstanding dues of approximately ₹48.48 crore, and strongly advised the concerned taxpayers to settle via the OTS scheme prior to their auction dates. Minister Cheema further added, “The department’s active alignment with the Hon’ble Supreme Court of India’s SAMADHAN initiative, under which 12 tax disputes have already been amicably resolved and over four more are slated for resolution. This dual approach of voluntary dispute settlement and decisive enforcement underscores Punjab’s commitment to ease of doing business, responsible administration, and the protection of state revenues.”
