Haryana's OTS Scheme 2025: Platform for Recovery of Tax dues Effective from 1st April is Live

The Haryana government has introduced the One Time Settlement (OTS) Scheme 2025, which becomes operational from April 1, 2025. The online application platform has been made operational, providing taxpayers to settle pending dues against seven major state tax legislations. The facility will be operational for six months.

The scheme, which was notified on 27th March 2025, will be available for 180 days, allowing individuals and companies to pay pre-GST period liabilities incurred until 30th June 2017 under acts like the Haryana VAT Act, Central Sales Tax Act, and Haryana Tax on Luxuries Act

The Scheme shall be applicable to the following Acts, namely :-

• (i)  The Haryana Value Added Tax Act, 2003;
• (ii)  The Central Sales Tax Act, 1956;
• (iii)  The Haryana Tax on Luxuries Act, 2007;
• (iv)  The Haryana Entertainment Duty Act, 1955 ;
• (v)  The Haryana General Sales Tax Act, 1973;
• (vi)  The Haryana Local Area Development Tax Act, 2000;
• (vii)  The Haryana Tax on Entry of Goods in to Local Areas Act, 2008;
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Application procedure

An applicant who has quantified outstanding dues under the relevant Act as of the date of submitting the OTS-1 application, regardless of whether an appeal is pending before the appellate authority, the Haryana Tax Tribunal, the Punjab and Haryana High Court, or the Supreme Court, may apply for settlement of their dues under the scheme. However, the applicant must withdraw any such appeal fully and unconditionally within sixty days of receiving the provisional order of settlement in Form OTS-4A.

The applicant may apply for the scheme within 180 days from the appointed day. The application should be made online in Form OTS-1, supported by evidence of payment for the settlement amount or the first installment, as the case may be. After receipt of Form OTS-1, an electronic system-generated acknowledgment will be given to the applicant in Form OTS-2.

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Key Features

Three-Tier Settlement Structure:

• Up to ₹10 lakh: 40% payment after ₹1 lakh rebate (e.g., ₹9 lakh dues - ₹3.6 lakh payable).
• ₹10 lakh–₹10 crore: 50% of outstanding tax.
• Above ₹10 crore: 100% payment

Exemption 

In the following instances, this OTS is not applicable. The exempted categories is as follows:

(a) the demand relates to erroneous refund(s) in the particular year under the relevant Act;

(b) criminal proceedings have been initiated in a case for a particular year under a relevant Act, the application shall not be entertained under the Scheme to avail settlement for that particular year under that relevant Act;

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(c) the applicant who had applied for availing benefits under the Haryana One Time Settlement Scheme, for Recovery of Outstanding Dues, 2023 and the application has not been rejected till the day before the appointed day i.e. the day of consideration of the quantified outstanding dues.

The notification also clarifies that no appeal shall lie before any appellate authority under the relevant Act, before the Haryana Tax Tribunal, Punjab & Haryana High Court or Supreme Court against the final order of settlement or rejection passed by the jurisdictional authority under the Scheme.

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