The Haryana state Excise and Taxation department has released many important frequently asked questions (FAQs) on the Haryana One Time Settlement Scheme, 2025 (OTS Scheme). Under this scheme, taxpayers with an outstanding tax due in Haryana state for an amount up to Rs 10 lakh will get a rebate of up to Rs 1 lakh and full waiver of interest and penalty, Haryana Chief Minister Sh. Nayab Singh Saini said on March 23, 2025. For outstanding tax dues above Rs 10 lakh there is no rebate, but you can still settle the outstanding amount without any payment of interest and penalty.
This OTS scheme 2025 is stated to remain open for six months from April 1, 2025. To make the scheme more accessible the Haryana government has introduced three payment slabs based on cumulative outstanding tax amounts.
“Under the Haryana One Time Tax Settlement Scheme 2025, a taxpayer with an outstanding tax liability of Rs 10 lakh would need to pay only Rs 3.6 lakh after availing a waiver of Rs 1 lakh and shall be required to pay only 40% the remaining amount. This represents a significant relief, particularly for small and medium taxpayers," says SR Patnaik, Partner (head-taxation), Cyril Amarchand Mangaldas.
Read below to know more about the Haryana OTS scheme 2025 and who is eligible for it and how much tax dues settlement can you expect.
What is the Haryana One Time Settlement Scheme for Recovery of Outstanding Dues, 2025?
According to Kishore Kunal, Advocate on Record, Supreme Court of India, "The Haryana One Time Settlement Scheme for Recovery of Outstanding Dues, 2025 (OTS Scheme) is introduced with the objective of recovering the outstanding dues of various indirect taxes, which were subsumed in the Goods and Services Tax introduced in 2017."
Kunal says: "In 2023, a One Time Settlement Scheme for Recovery of Outstanding Dues, 2023 ('OTS 2023 Scheme') was introduced w.e.f. 01.01.2024. "By way of the said 2023 Scheme, the amounts outstanding against the assessee were proposed to be settled by providing waiver on account of tax, interest and penalty depending upon the category in which the case falls."
Kunal says: "In comparison to the earlier OTS 2023, the present OTS Scheme 2025 is effectively simpler as the quantified tax due under the relevant Act shall be the final amount on which settlement has to be mad. Further, there is no sub-category of the quantified tax due and thus, any applicant whether registered or not is eligible to avail the benefit. Furthermore, there is no requirement of filing separate application for different years and one single application will be maintainable and thus, will reduce the unnecessary burden. Therefore, an applicant who has outstanding tax due under the relevant Act for the period 30.06.2017, may avail the benefit under the OTS Scheme. While the OTS Scheme provides for adjustment of amounts paid prior to the Scheme, it would have been ideal if the status of the amounts paid by applicants whose OTS 2023 Scheme applications were rejected, was also clarified. This would have put an end to the continuing litigation relating to the 2023 OTS Scheme."
Who can opt for the Haryana One Time Settlement Scheme for the Recovery of Outstanding Dues, 2025 (OTS Scheme)?
According to the circular by Haryana GST department released on April 22, 2025 here are the details:
The Haryana One Time Settlement Scheme 2025 is applicable only on quantified outstanding dues in these seven relevant acts:
The Haryana Value Added Tax Act, 2003; The Central Sales Tax Act, 1956; The Haryana Tax on Luxuries Act, 2007; The Haryana Entertainment Duty, Act, 1955; The Haryana General Sales Tax Act, 1973; The Haryana Local Area Development Tax Act, 2000; The Haryana Tax on Entry of Goods into Local Areas Act, 2008
“Any person or assessee, whether registered or not, who has Quantified Outstanding Dues for the period up to June 30, 2017, can opt to avail the benefits of the OTS Scheme, 2025. It is to be noticed that the quantified outstanding dues must be for the period up to June 30, 2017 but may have been decided at any time as on the date of filing application OTS-1,” said the Haryana GST department.
Who is not eligible to opt for the Haryana One Time Settlement Scheme for the Recovery of Outstanding Dues, 2025 (OTS Scheme)?
According to the circular, here are the details:
The following applicants shall not be eligible to opt for the scheme:
Against whom criminal proceedings have been initiated under the relevant Acts. Where the demand relates to erroneous refunds under the relevant Act. Whose application under the OTS Scheme 2023 has not been rejected till the appointed day of this scheme. Such applicants shall not be eligible to opt under this scheme only for that particular year under that relevant Act wherein such proceedings are initiated.
What are the benefits of Haryana One Time Settlement Scheme for the Recovery of Outstanding Dues, 2025 (OTS Scheme)?
As per the circular, the amount of interest and penalty (including interest leviable) under any section of the relevant Act is completely waived off. A waiver of Rs 1 lakh is also available to the applicants who have cumulative quantified outstanding tax dues up to Rs 10 lakh. This waiver is not available in any other slab of the cumulative quantified outstanding tax dues. For availing the benefit under the scheme, the applicant willing to avail any of the benefits under the scheme, he has to make an applicable under the scheme. The waiver shall be separately calculated for each of the relevant Acts.
“The applicant is required to pay only prescribed percentage of quantified outstanding tax dues as per the Scheme IA of the OTS Scheme as under:
Schedule- IA clause 6(1): Determination of settlement amount in lieu of quantified outstanding dues
Haryana Chief Minister Sh. Nayab Singh Saini said on March 23, 2025, “The One Time Settlement Scheme-2025 is for those taxpayers of Haryana who could not pay the outstanding amount of their taxes due to various reasons. Under this scheme, taxpayers with dues up to Rs 10 lakh will get a rebate of up to Rs 1 lakh. This scheme will remain open for the coming 180 days i.e. 6 months. He appealed to the taxpayers to pay their dues as soon as possible.” (https://haryanacmoffice.gov.in/index.php/23-march-2025-0)
Are you required to pay the full amount of quantified outstanding dues at the time of applying for the OTS Scheme?
As per the circular, No. The applicant may opt to make payment for settlement of his quantified outstanding dues in lumpsum or in installments as per the option available in Schedule-II of the OTS scheme. The first installment is to be made with the OTS-1 application and the second instalment within 60 days from the issuance of interim order in Form OTS-4A (clause 6(7) and 6(8)
Schedule II: Option to pay in instalments
What happens if you fail to make the payment of the instalment within the period prescribed?
As per the circular, if the payment of instalment is not made within the period prescribed under the scheme i.e. 60 days from the issuance of OTS-4A, the application shall be liable to be rejected and the amount paid with OTS-1 by the applicant shall be adjusted against his liabilities under the relevant Act and such amount shall not be refunded in any case. It will be presumed that the applicant has never made any application as per clause 4(4).
Are only Haryana state registered taxpayers eligible for this settlement scheme?
According to Patnaik, “The scheme is open to any person, irrespective of their state of registration, who has quantified dues under specified Haryana state laws (Haryana Value Added Tax Act, 2003, Central Sales Tax Act, 1956, Haryana Tax on Luxuries Act, 2007, Haryana Entertainment Duty Act, 1955, Haryana General Sales Tax Act, 1973, Haryana Local Area Development Tax Act, 2000 and Haryana Tax on Entry of Goods in to Local Areas Act, 2008) for periods prior to July 2017. However, exclusions apply in cases involving erroneous refunds, ongoing criminal proceedings, or pending settlement application under previous schemes.”
This OTS scheme 2025 is stated to remain open for six months from April 1, 2025. To make the scheme more accessible the Haryana government has introduced three payment slabs based on cumulative outstanding tax amounts.
“Under the Haryana One Time Tax Settlement Scheme 2025, a taxpayer with an outstanding tax liability of Rs 10 lakh would need to pay only Rs 3.6 lakh after availing a waiver of Rs 1 lakh and shall be required to pay only 40% the remaining amount. This represents a significant relief, particularly for small and medium taxpayers," says SR Patnaik, Partner (head-taxation), Cyril Amarchand Mangaldas.
Read below to know more about the Haryana OTS scheme 2025 and who is eligible for it and how much tax dues settlement can you expect.
What is the Haryana One Time Settlement Scheme for Recovery of Outstanding Dues, 2025?
According to Kishore Kunal, Advocate on Record, Supreme Court of India, "The Haryana One Time Settlement Scheme for Recovery of Outstanding Dues, 2025 (OTS Scheme) is introduced with the objective of recovering the outstanding dues of various indirect taxes, which were subsumed in the Goods and Services Tax introduced in 2017."
Kunal says: "In 2023, a One Time Settlement Scheme for Recovery of Outstanding Dues, 2023 ('OTS 2023 Scheme') was introduced w.e.f. 01.01.2024. "By way of the said 2023 Scheme, the amounts outstanding against the assessee were proposed to be settled by providing waiver on account of tax, interest and penalty depending upon the category in which the case falls."
Kunal says: "In comparison to the earlier OTS 2023, the present OTS Scheme 2025 is effectively simpler as the quantified tax due under the relevant Act shall be the final amount on which settlement has to be mad. Further, there is no sub-category of the quantified tax due and thus, any applicant whether registered or not is eligible to avail the benefit. Furthermore, there is no requirement of filing separate application for different years and one single application will be maintainable and thus, will reduce the unnecessary burden. Therefore, an applicant who has outstanding tax due under the relevant Act for the period 30.06.2017, may avail the benefit under the OTS Scheme. While the OTS Scheme provides for adjustment of amounts paid prior to the Scheme, it would have been ideal if the status of the amounts paid by applicants whose OTS 2023 Scheme applications were rejected, was also clarified. This would have put an end to the continuing litigation relating to the 2023 OTS Scheme."
Who can opt for the Haryana One Time Settlement Scheme for the Recovery of Outstanding Dues, 2025 (OTS Scheme)?
According to the circular by Haryana GST department released on April 22, 2025 here are the details:
The Haryana One Time Settlement Scheme 2025 is applicable only on quantified outstanding dues in these seven relevant acts:
“Any person or assessee, whether registered or not, who has Quantified Outstanding Dues for the period up to June 30, 2017, can opt to avail the benefits of the OTS Scheme, 2025. It is to be noticed that the quantified outstanding dues must be for the period up to June 30, 2017 but may have been decided at any time as on the date of filing application OTS-1,” said the Haryana GST department.
Who is not eligible to opt for the Haryana One Time Settlement Scheme for the Recovery of Outstanding Dues, 2025 (OTS Scheme)?
According to the circular, here are the details:
The following applicants shall not be eligible to opt for the scheme:
What are the benefits of Haryana One Time Settlement Scheme for the Recovery of Outstanding Dues, 2025 (OTS Scheme)?
As per the circular, the amount of interest and penalty (including interest leviable) under any section of the relevant Act is completely waived off. A waiver of Rs 1 lakh is also available to the applicants who have cumulative quantified outstanding tax dues up to Rs 10 lakh. This waiver is not available in any other slab of the cumulative quantified outstanding tax dues. For availing the benefit under the scheme, the applicant willing to avail any of the benefits under the scheme, he has to make an applicable under the scheme. The waiver shall be separately calculated for each of the relevant Acts.
“The applicant is required to pay only prescribed percentage of quantified outstanding tax dues as per the Scheme IA of the OTS Scheme as under:
Schedule- IA clause 6(1): Determination of settlement amount in lieu of quantified outstanding dues
Haryana Chief Minister Sh. Nayab Singh Saini said on March 23, 2025, “The One Time Settlement Scheme-2025 is for those taxpayers of Haryana who could not pay the outstanding amount of their taxes due to various reasons. Under this scheme, taxpayers with dues up to Rs 10 lakh will get a rebate of up to Rs 1 lakh. This scheme will remain open for the coming 180 days i.e. 6 months. He appealed to the taxpayers to pay their dues as soon as possible.” (https://haryanacmoffice.gov.in/index.php/23-march-2025-0)
Are you required to pay the full amount of quantified outstanding dues at the time of applying for the OTS Scheme?
As per the circular, No. The applicant may opt to make payment for settlement of his quantified outstanding dues in lumpsum or in installments as per the option available in Schedule-II of the OTS scheme. The first installment is to be made with the OTS-1 application and the second instalment within 60 days from the issuance of interim order in Form OTS-4A (clause 6(7) and 6(8)
Schedule II: Option to pay in instalments
What happens if you fail to make the payment of the instalment within the period prescribed?
As per the circular, if the payment of instalment is not made within the period prescribed under the scheme i.e. 60 days from the issuance of OTS-4A, the application shall be liable to be rejected and the amount paid with OTS-1 by the applicant shall be adjusted against his liabilities under the relevant Act and such amount shall not be refunded in any case. It will be presumed that the applicant has never made any application as per clause 4(4).
Are only Haryana state registered taxpayers eligible for this settlement scheme?
According to Patnaik, “The scheme is open to any person, irrespective of their state of registration, who has quantified dues under specified Haryana state laws (Haryana Value Added Tax Act, 2003, Central Sales Tax Act, 1956, Haryana Tax on Luxuries Act, 2007, Haryana Entertainment Duty Act, 1955, Haryana General Sales Tax Act, 1973, Haryana Local Area Development Tax Act, 2000 and Haryana Tax on Entry of Goods in to Local Areas Act, 2008) for periods prior to July 2017. However, exclusions apply in cases involving erroneous refunds, ongoing criminal proceedings, or pending settlement application under previous schemes.”
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