Punjab cabinet gives nod to OTS scheme to recover pre-GST arrears
GST
Dated:- 24-9-2025
PTI
Chandigarh, Sep 24 (PTI) The Punjab Cabinet on Wednesday approved a One-Time Settlement (OTS) scheme, aimed at resolving tax arrears amounting to Rs 11,968 crore pending under different laws before the implementation of the Goods and Services Tax in the state.
The cabinet also gave prosecution sanction against former Punjab minister Sadhu Singh Dharamsot in a corruption case registered by vigilance bureau in 2022.
The cabinet, in a meeting here headed by Chief Minister Bhagwant Mann, also gave approval to set up a special court in Mohali to deal with cases of the National Investigation Agency.
One post of district and sessions judge
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54, and Punjab Entertainment Duty Act 1955, he explained.
“We will bring a one-time settlement under all these cases,” Cheema said.
“There are 20,039 cases. We have decided to dispose of them under the OTS scheme. Interest and penalty will be waived,” he said, adding that the move will benefit more than 20,000 traders.
Cheema said the scheme, which will be effective from October 1 to December 31, aims to resolve approximately 20,039 pending cases involving outstanding dues amounting to Rs 11,968.88 crore across various pre-GST laws, providing substantial relief to the state's trade and industry.
It will be the final opportunity for taxpayers to settle their outstanding dues, he said, adding that after January 1, 2026, recovery proce
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cided to claim charges for the government land meant for common roads and water channels which have been illegally occupied by people or colonisers.
A price fixation committee headed by deputy commissioners will decide about the charges for such land and half of which will be given to municipal committees.
In another decision, the cabinet gave approval for an OTS scheme for rice mills.
“There are 1,688 default cases involving rice mills. Interest and penalty will be waived in these cases as well but they will have to pay 50 percent over and above the principal amount, Cheema said.
Some rice mills over the years have not deposited their outstanding dues due to which these millers have been declared defaulter and legal or arbitration
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