Punjab Extends Tax Settlement Scheme Deadline, Providing Relief to Traders

The Punjab government has extended its one-time tax settlement scheme deadline to March 31, offering much-needed relief to traders. This move addresses compliance pressures faced by businesses, encouraging participation and allowing them to settle pre-GST disputes effectively. Finance Minister Cheema warns of strict measures for non-compliance.

The Punjab government has granted an extension for the one-time tax settlement program, pushing the deadline to March 31, announced Finance Minister Harpal Singh Cheema on Thursday. This decision comes as a relief to traders and industry.

The scheme, initiated on October 1, was initially scheduled to conclude on December 31. However, the extension was approved following appeals from stakeholders, including the GST Practitioners Association of Punjab, pointing to significant compliance pressures and practical challenges faced by taxpayers.

The scheme, targeting pre-GST disputes under VAT and Central Sales Tax laws, offers substantial relief, including waivers on interest and penalties. A total of 6,348 applications have been received, indicating strong interest from the trading community, Cheema noted. He urged eligible entities to utilize the scheme before March as strict recovery actions would follow for non-compliance.

(With inputs from agencies.)