Punjab cabinet gives nod to OTS scheme to recover pre-GST arrears

Chandigarh, Sep 24 (PTI) The Punjab Cabinet on Wednesday approved a one-time settlement scheme that will allow traders and businessmen to pay arrears pending under different laws before the implementation of the Goods and Services Tax (GST) in the state.

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.

Addressing the media later, Finance Minister Harpal Singh Cheema said the cabinet gave prosecution sanction against former Punjab minister Sadhu Singh Dharamsot in a corruption case registered by vigilance bureau in 2022.

Sharing more details, Cheema said a One-Time Settlement (OTS) scheme will be launched for recovery of pre-GST arrears.

These are arrears pending under the Punjab Value Added Tax Act 2005, the Central Sales Tax Act 1956, Punjab Infrastructure Development and Regulation Act 2002, Punjab General Sales Tax Act 1948, Punjab Entertainment Tax (Cinematograph Show) Act 1954, and Punjab Entertainment Duty Act 1955, he explained.

"We will bring one-time settlement under all these cases," Cheema said.

"There are 20,039 cases. We have decided to dispose them of under the OTS scheme. Interest and penalty will be waived," he said, adding that the move will benefit more than 20,000 traders.

In yet 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," Cheema said. PTI CHS RUK RUK