The Punjab government on Friday announced the extension of its one-time tax settlement scheme till September 30 for clearing pending dues for the period before the implementation of GST (goods and services tax).

The earlier deadline of the One-Time Settlement (OTS) Scheme 2025 was July 31.

GST, a unified taxation regime to replace multiple indirect taxes levied by central and state governments, was implemented nationwide on July 1, 2017.

The extension of the deadline will allow eligible taxpayers to settle pending tax disputes with substantial relief, said Finance, Excise and Taxation Minister Harpal Singh Cheema.

Cheema further said that the government has received 9,782 applications under the scheme as of July 30, covering a total tax demand of Rs 437.51 crore.

Taxpayers have deposited Rs 167.23 crore under the scheme, while the government has granted relief worth Rs 534.54 crore through waivers of tax, interest and penalties.

The minister said the extension was granted in response to strong demand from taxpayers, and would allow the remaining 9,386 eligible taxpayers to avail a 100 per cent waiver on interest and penalties, along with slab-wise relief in principal tax.

According to the minister, the figures reflected taxpayers’ confidence in the government’s transparent and business-friendly policies aimed at resolving legacy tax disputes.

At the same time, Cheema said, the Excise and Taxation Department has intensified recovery proceedings against habitual defaulters of value added tax (VAT) through property attachment and auction.

More than Rs 12.39 crore has been recovered through enforcement action, with several defaulters opting for the OTS scheme after recovery proceedings were initiated, he said.

The department has scheduled 13 auction proceedings in August to recover around Rs 48.48 crore in outstanding dues, Cheema said and urged the taxpayers to settle their liabilities under the scheme before the auction dates.

Calling the extension a “strictly final” opportunity, Cheema warned that no further extension would be granted after September 30.

Also, the department would step up coercive recovery measures under tax laws and the Punjab Land Revenue Act, including freezing bank accounts and auctioning properties, after the deadline expires, the minister said.

The minister also said the department was supporting the Supreme Court’s SAMADHAN initiative for amicable settlement of tax disputes.

He said 12 major tax disputes had already been resolved, while four more were in the process of settlement.

Cheema said the government was pursuing a balanced approach by providing relief to businesses while taking firm action against frequent tax defaulters.

Source: Money Control