Chandigarh, Jan 1: Facing sustained demand from traders and tax practitioners, the Punjab government has pushed the deadline for its one-time settlement scheme for outstanding tax dues to March 31, Finance Minister Harpal Singh Cheema said Thursday.
The scheme, introduced on October 1 to settle pre-GST tax disputes, was originally set to expire on December 31. The extension, Cheema said, was approved after taxpayers flagged compliance pressure and operational hurdles.
“Many businesses were unable to assess their exact tax liability due to overlapping deadlines and delayed assessment orders,” Cheema said. “Keeping these concerns in mind, the government has decided to extend the scheme.”
Under the OTS scheme, disputes related to value-added tax and central sales tax can be resolved with substantial concessions. Depending on the case, taxpayers can receive full waiver of interest and penalties, along with a reduction in the principal tax amount.
The finance minister said the response so far has been encouraging, with 6,348 applications already received.
Government officials said the end-of-year compliance load and late delivery of VAT assessment orders prevented several eligible taxpayers from filing applications within the original deadline.
Cheema said the extension aligns with the government’s approach to simplify tax compliance and create a business-friendly environment in the state.
He appealed to traders, industrial units and rice millers to come forward and settle long-pending cases before the revised deadline.
“After March 31, recovery proceedings will be initiated against those who do not avail the scheme,” Cheema said.
