Haryana Launches One-Time Settlement (OTS) Scheme 2025: Check Key Details Here

The Haryana government has introduced a generous One Time Settlement (OTS) Scheme 2025 to help taxpayers settle outstanding indirect tax dues without penalties or interest. The scheme, announced by Chief Minister Nayab Singh Saini on March 23, 2025, is aimed at clearing legacy dues under pre-GST tax regimes and will remain open for 6 months starting April 1, 2025.

What Is the OTS Scheme 2025?

The Haryana One Time Settlement Scheme 2025 is designed to recover dues under 7 legacy tax laws that were replaced by the GST in July 2017. It simplifies settlement by offering clear waivers and reducing the paperwork burden. Unlike the 2023 version of the scheme, this updated version allows for one consolidated application for all years and acts, reducing complexity.

Eligible tax laws include:

• Haryana VAT 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

• Haryana Tax on Entry of Goods into Local Areas Act, 2008

Who Can Apply for OTS Scheme 2025?

Anyone with quantified outstanding tax dues for the period up to June 30, 2017, can apply—whether registered or not. However, the dues must be formally determined (“quantified”) under the relevant Act before application.

Who Is Not Eligible?

Applicants are excluded from the scheme if:

• Criminal proceedings have been initiated against them under any of the relevant Acts.

• The dues relate to erroneous refunds.

• They have an active, unresolved application under the 2023 OTS Scheme (but only for the specific year and Act concerned).

Relief Offered Under the Scheme

The scheme offers:

• Full waiver of interest and penalties across all slabs.

• Tax rebate up to ₹1 lakh for dues up to ₹10 lakh.

• Substantial reduction in principal tax due as per the following slabs:

Flexible Payment Options

Applicants don’t have to pay the entire amount upfront. For dues above ₹10 lakh, payments can be made in two installments:

• 50% at the time of application (Form OTS-1)

• Remaining 50% within 60 days of receiving provisional order (OTS-4A)

For dues up to ₹10 lakh, the full amount must be paid upfront.

If the second installment is not paid within 60 days, the application will be rejected, and any amount paid will be adjusted against existing liabilities—no refunds will be issued.

OTS Scheme 2025 is Open to Non-Haryana Registered Taxpayers

The scheme is open to any taxpayer with liabilities under Haryana laws, irrespective of whether they are registered in Haryana or not, as long as their dues are under the applicable Acts and fall within the eligible period.

Conclusion

The Haryana OTS Scheme 2025 is a strategic move to clear the backlog of indirect tax dues and help small and medium taxpayers resolve long-standing liabilities. With full waivers on interest and penalties, significant rebates on tax dues, and a simplified application process, the scheme offers a one-time opportunity to regularise pre-GST tax issues. Taxpayers are encouraged to apply early and settle their dues within the six-month window.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.