This move provides much-needed relief to traders and industry.

Punjab Government Extends Tax Dues Settlement Deadline to March 31, Finance Minister Urges Traders to Act

On Thursday, Finance Minister Harpal Cheema said that the Punjab government has extended the deadline for its one-time settlement (OTS) scheme for outstanding tax dues to March 31. The scheme was originally launched on October 1, 2025, and the deadline was set as December 31, 2025.

Cheema said the extension was approved after representations from various stakeholders, including the GST Practitioners Association of Punjab, which cited heavy compliance pressure and practical difficulties faced by taxpayers in meeting the original deadline. This move provides much-needed relief to traders and industry.

According to the minister, 6,348 applications have been received so far under the OTS scheme, reflecting strong participation from the trading community. The government noted that overlapping tax deadlines towards the end of 2025 and delays in the service of VAT assessment orders made it difficult for many businesses to assess their exact liabilities within the prior timeline.

The OTS scheme aims to resolve pre-GST disputes under VAT and Central Sales Tax laws by offering substantial relief, including up to a 100 per cent waiver of interest and penalties and reductions 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 themselves of the scheme and settle long-pending dues and warned that strict recovery proceedings will be initiated against defaulters who fail to opt for the settlement after March 31.

Source: The Tribune