Punjab govt extends tax dues settlement scheme deadline till March 31

The Punjab government has extended the deadline for the one-time settlement scheme for outstanding tax dues till March 31, providing relief to traders and industry, Finance Minister Harpal Singh Cheema said on Thursday.

The scheme, launched on October 1, was earlier set to end on December 31.

Cheema said the extension was approved after representations from various stakeholders, including the GST Practitioners Association of Punjab, citing heavy compliance pressure and practical difficulties faced by taxpayers.

So far, 6,348 applications have been received under the one-time settlement (OTS) scheme, reflecting strong participation from the trading community, he said.

The government noted that overlapping tax deadlines towards the end of 2025 and delays in service of VAT assessment orders made it difficult for many businesses to assess their exact liabilities within the original timeline.

 

The OTS scheme aims to resolve pre-GST disputes under the laws for VAT and Central Sales Tax by offering substantial relief, including up to 100 per cent waiver of interest and penalties and significant reduction in the principal tax amount, depending on the case.

Cheema said the extension reflects the government's commitment to ease compliance and promote a pro-business environment.

He urged eligible traders, industrial units and rice millers to avail the scheme and settle long-pending dues.

The minister also warned that strict recovery proceedings would be initiated against defaulters who fail to opt for the scheme after March 31.