Punjab's Tax Revolution: OTS-3 Scheme Nets Rs. 164.35 Crore in Revenue

Chandigarh, August 20: Punjab Finance, Planning, Excise and Taxation Minister Advocate Harpal Singh Cheema announced on Tuesday that 70,311 dealers have benefited from the One Time Settlement Scheme-3 (OTS-3), launched in November 2023 to reduce legacy tax issues.

The scheme has generated Rs. 164.35 crore for the government treasury, surpassing the total tax revenue of Rs. 13.15 crore from 31,768 cases under the previous OTS-1 and OTS-2 schemes.

Under OTS-3, 50,903 dealers with arrears up to Rs. 1 lakh received a 100% waiver of tax, interest, and penalty, totaling Rs. 221.75 crore. Additionally, 19,408 dealers with arrears between Rs. 1 lakh and Rs. 1 crore availed a 100% waiver of interest and penalty, and a 50% waiver in tax, amounting to Rs. 644.46 crore.

The scheme covered cases up to the assessment year 2016-17, with arrears up to Rs. 1 crore. Dealers who applied under OTS-3 submitted original statutory forms under the CST Act, 1956, and the waiver was calculated accordingly. Applicants were also allowed to submit additional statutory declaration forms to reduce their liability.

OTS-3 has been a significant success, demonstrating the Punjab government's commitment to streamlining tax issues and providing relief to dealers."