The Punjab government led by Chief Minister Bhagwant Mann has extended the One-Time Settlement (OTS) Scheme for recovery of outstanding dues till March 31, 2026, providing major relief to traders and industrial units across the state.
In a major relief to traders and industrial units, the Punjab government has extended the deadline for the Punjab One-Time Settlement (OTS) Scheme for Recovery of Outstanding Dues, 2025 till March 31, 2026. The move is aimed at easing compliance pressure on taxpayers and encouraging wider participation in the scheme.
Bhagwant Mann Government Gives Relief to Traders
The extension was formally approved by Punjab Finance, Excise and Taxation Minister Harpal Singh Cheema after representations from various trade bodies and professional associations, including the GST Practitioners Association (GSTPA), Punjab. Stakeholders had highlighted that taxpayers were under heavy statutory compliance pressure during November and December 2025, due to overlapping deadlines for GST returns, VAT-related filings and other statutory obligations.
OTS Scheme Extended Till March 31
Officials said several eligible taxpayers also faced difficulties in determining their exact dues because VAT assessment orders were still pending service, making it challenging to apply under the scheme before the earlier deadline of December 31, 2025.
According to official data, the response to the OTS Scheme has been significant so far. A total of 6,348 applications have been received, out of which 4,365 applications have already been approved. These approved cases involve tax, interest and penalty demands worth ₹311.07 crore. Under the scheme, the state has recovered ₹65.81 crore, while ₹245.26 crore has been waived, providing substantial relief to businesses.
Calling the initiative one of the most taxpayer-friendly measures, the finance minister said the OTS Scheme 2025, launched on October 1, is designed to reduce long-pending litigation and unlock blocked revenue. Depending on the demand amount, taxpayers can avail up to 100% waiver on interest and penalty, along with significant relief on the principal tax amount.
The extension is expected to further boost participation and provide much-needed financial relief to Punjab’s trading community while strengthening the state’s revenue position.
