Punjab to introduce OTS scheme for pre-GST arrears

CHANDIGARH: In a major Diwali gift to the traders of the state, the Punjab Cabinet on Monday gave approval for introducing the Punjab One Time Settlement (OTS) scheme for settlement of pre-GST arrears thereby benefitting more than 60,000 traders.

A decision to this effect was taken by the Council Of Ministers in its meeting held under the chairmanship of Chief Minister, Bhagwant Singh Mann here at his office in Punjab Civil Secretariat I.

Disclosing this on Monday, a spokesperson of the Chief Minister’s Office said that the scheme has been launched for recovery of Outstanding Dues, 2023 for settlement of pre-GST arrears to enable reduction of compliance burden of legacy cases. The OTS will be applicable from November 15, 2023 and will be valid till March 15, 2024 and Taxpayers whose assessments have been framed till March 31, 2023 with amount of total demand (tax, penalty and interest) up to Rs 1 crore, shall be eligible to apply for settlement under this scheme.

The OTS would provide complete waiver in case of arrears up to Rs 1 lakh as on March 31, which would cover nearly 39,787 cases and a further, waiver of 100% interest, 100% penalty and 50% of the tax amount is being given in nearly 19,361 cases.