Punjab Announces Extension of OTS Deadline for Dues Recovery, FM Harpal Cheema Confirms

Punjab Finance Minister Harpal Singh Cheema announced on Tuesday that the state government has extended the deadline for applications under the Punjab One Time Settlement Amendment Scheme for recovery of dues to August 16. This extension aims to reduce the compliance burden of legacy cases and help trade and industry improve their compliance under the GST regime.

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The Punjab One Time Settlement Scheme for Recovery of Outstanding Dues, 2023, which started on November 15, 2023, offers taxpayers a one-time chance to settle their outstanding dues. Initially, this scheme was valid until June 30, 2024. The extension now provides more time for applicants to take advantage of this opportunity.

Key Benefits of the Scheme

According to an official statement, taxpayers whose assessments were framed until March 31, 2024, and all rectification or revision/assessment after remand orders passed until March 31, 2024, under the relevant Acts with a total demand tax, penalty, and interest as per the original assessment order up to Rs 1 crore as of March 31, 2024, are eligible to apply for settlement under this scheme.

One significant benefit of the scheme is a complete waiver of tax, interest, and penalty in cases where arrears are up to Rs 1 lakh as of March 31, 2024. For demands ranging from Rs 1 lakh to Rs 1 crore, there is a waiver of 100 per cent interest and penalty and a 50 per cent waiver on the tax amount.

Application Process

Dealers can submit original statutory forms under the CST Act, 1956, when applying under OTS-2023. The waiver will be calculated based on these submissions. This process aims to simplify compliance and provide relief to taxpayers.

Cheema emphasised that the Punjab government is committed to supporting taxpayers and promoting a tax-compliant culture. He noted that extending the deadline gives applicants more time to benefit from this scheme.

The scheme's extension is part of the government's efforts to ease compliance burdens and support businesses in adhering to GST regulations. By providing additional time for application submissions, the government aims to facilitate better compliance and recovery of outstanding dues.

This initiative reflects the government's dedication to creating a supportive environment for taxpayers while ensuring that outstanding dues are settled efficiently. The extended deadline allows more businesses to take advantage of the scheme's benefits.

The Punjab One Time Settlement Scheme for Recovery of Outstanding Dues represents a significant step towards easing compliance challenges for businesses. By offering substantial waivers and extending deadlines, the government aims to foster a more compliant and supportive tax environment.