The Haryana government has introduced the “Haryana One Time Settlement Scheme for Recovery of Outstanding Dues 2025” to facilitate the recovery of outstanding dues under various state tax acts. This scheme, notified on March 27, 2025, allows assessees to settle quantified outstanding dues, including tax, interest, and penalties, accrued up to June 30, 2017. The scheme covers acts like the Haryana Value Added Tax Act, Central Sales Tax Act, Haryana Tax on Luxuries Act, and others. Applicants can opt for the scheme by submitting an online application (Form OTS-1) and making payments either in lump sum or installments as per specified schedules.
The scheme outlines specific conditions for determining outstanding dues, including how prior deposits will be adjusted. It also provides waivers, such as a ₹1 lakh waiver for applicants with cumulative outstanding tax dues up to ₹10 lakhs. Applicants must withdraw any pending appeals related to the settled dues. The jurisdictional authority will verify applications and issue settlement orders (Form OTS-4) or provisional orders (Form OTS-4A). Deficiencies in applications will be communicated through deficiency notices (Form OTS-3), and failure to rectify these may lead to rejection (Form OTS-5). The scheme also addresses the treatment of dues uploaded under the Haryana Goods and Services Tax Rules, 2017.
The final settlement order provides immunity from further tax, interest, penalty, and prosecution related to the settled period. However, any false information provided by the applicant will void the settlement. The scheme explicitly states that amounts paid before the scheme’s appointed day will not be refunded or adjusted against the settlement amount. Payments under the scheme cannot be made through input tax credits. The jurisdictional authority is empowered to rectify errors in settlement orders. The notification also includes provisions for resolving difficulties or doubts arising from the scheme, with the Excise and Taxation Commissioner having the final say.
HARYANA GOVERNMENT
EXCISE AND TAXATION DEPARTMENT
Notification
The 27th March, 2025
No. 21/ST-1.— Whereas, it is expedient for the recovery of outstanding dues under the Haryana Settlement of Outstanding Dues Act, 2017 (35 of 2017), therefore, in exercise of the powers conferred under section 3 of the said Act, the Governor of Haryana hereby notifies the following scheme namely the Haryana One Time Settlement Scheme for Recovery of Outstanding Dues 2025, for recovery of quantified outstanding dues for the period as specified in the Act, subject to the following conditions and restrictions, namely:-
1. Short title and commencement.
(1) This scheme may be called the Haryana One Time Settlement Scheme for Recovery of Outstanding Dues, 2025.
(2) It shall come into force on such date, as the Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different relevant Acts covered under this scheme and any reference in any such provision to the commencement of this scheme shall be construed as a reference to the coming into force of that provision.
2. Definitions.
(1) For the purposes of this Scheme, unless the context otherwise requires,-
a. “applicant” means any assessee or any person who is liable to pay any outstanding dues under the relevant Acts, whether registered or not, and who desires to avail the benefit by applying under the Scheme;
b. “appointed day” means the date on which the provisions of this Scheme shall come into force;
c. “jurisdictional authority” means the appropriate assessing authority under whose jurisdiction the particular applicant falls;
d. “quantified outstanding dues” means any tax, interest, penalty or any other dues quantified under any of the relevant Act, unpaid by a person, for the period upto the 30th June, 2017;
e. “settlement amount” means the amount to be paid under the Scheme by the applicant for the settlement of his quantified outstanding dues;
(2) Words and expressions used in this Scheme, but not defined shall have the same meaning as assigned to them in the relevant Act.
3. Determination of quantified Outstanding Dues.
(1) The quantified outstanding dues to be recovered under this scheme shall be quantified outstanding dues as on the date of submission of application in Form OTS-1 under the Scheme subject to the conditions mentioned in other clauses of the scheme.
(2) The quantified outstanding dues shall be determined assessment year wise and slab for settlement under the scheme shall be determined as provided in Schedule-I.
(3) The Demand and Disposal Register in Form G-3 as prescribed under rule 28(6) and 29(7) of the Haryana Value Added Tax Rules, 2003 shall be the conclusive proof of quantified outstanding dues only in the cases where no other record of assessment is available.
4. Scope and application of the scheme
(1) The Scheme shall be applicable to the following Acts, namely :-
i. The Haryana Value Added Tax Act, 2003 (6 of 2003);
ii. The Central Sales Tax Act, 1956 (Central Act 74 of 1956) ;
iii. The Haryana Tax on Luxuries Act, 2007 (23 of 2007);
iv. The Haryana Entertainment Duty Act, 1955 (Punjab Act 16 of 1955);
v. The Haryana General Sales Tax Act, 1973 (20 of 1973).
vi. The Haryana Local Area Development Tax Act, 2000 (13 of 2000);
vii. The Haryana Tax on Entry of Goods in to Local Areas Act, 2008 (8 of 2008);
(2) An applicant may opt for the Scheme under any of the relevant Act.
(3) Any amount paid under the Scheme shall be deposited under the Treasury Head of the relevant Act for which the Scheme is being opted for.
(4) The applicant shall have to make only one application for all the years wherein he has quantified outstanding dues under a relevant Act for which he intends to settle his quantified outstanding dues in Form OTS-1 as per Schedule-I.
(5) The applicant shall submit a declaration along with his application in form OTS-1 to the effect that the information furnished by him in the application form and in other forms under the Scheme, are true and correct to the best of his knowledge and the material/documents on record. No part of it is false and nothing has been concealed therein.
(6) If an applicant conceals any of the years having quantified outstanding dues under a relevant Act for which he has opted, the application shall be rejected. The amount deposited along with OTS-1 for such an application shall be adjusted against his total quantified outstanding dues.
5. Preconditions for determination of quantified outstanding dues
The quantified outstanding dues of an applicant under the relevant Act shall be determined subject to the following manner and conditions namely:-
i. where purpose/category of the deposit made by an applicant before the appointed day of the Scheme, with regard to tax, interest or penalty is specified in the deposit application/treasury challan/receipt etc. issued by the department, the same has to be treated accordingly as specified.
ii. where a deposit made by an applicant before the appointed day of the scheme for a relevant assessment year under a relevant Act, without specifying the purpose/category of the deposit with reference to tax, interest or penalty in his application for deposit/treasury challan/receipt etc. issued by the department, shall be firstly considered as deposit for tax component and, if any balance amount remains, it shall be thereafter adjusted towards interest and penalty for the relevant assessment year under the relevant Act.
iii. a deposit for a particular year under a relevant Act shall be adjusted in that particular year only under that relevant Act out of quantified outstanding tax amount or the outstanding interest amount or the outstanding penalty amount. Further, no refund shall accrue to the applicant under the Scheme with regard to any excess payment made before the appointed day exceeding the tax component for the relevant assessment year under the relevant Act.
iv. any amount that was deposited by an applicant before the appointed day shall be adjusted only towards his liabilities of the assessment year for which it was deposited. It shall be adjusted only if the year for which it is deposited is specifically mentioned in the treasury challan/ receipts. No benefit of any deposit shall be given if the year for which it is deposited is not specifically mentioned in the treasury challan/ receipts.
v. where the total tax amount has been deposited by the applicant for the relevant assessment year under the relevant Act, before the appointed day, the applicant shall be eligible under the Scheme and the settlement amount under the Scheme in lieu of interest or penalty shall become “NIL” for the relevant assessment year under the relevant Act.
vi. no refund shall accrue under any circumstance to an applicant out of the amount that was deposited before the appointed day of the Scheme which may be rendered in excess of the liabilities of the assessee by the operation of the waivers of the Scheme. Similarly, no such excess amount shall be carried forward and adjusted towards any other liability of the assessee for any period under the relevant Act.
vii. where any amount deposited for settlement amount on/after the appointed day of the scheme till the date of submission of application Form OTS-1 under this scheme shall be counted towards the settlement amount of his quantified outstanding dues.
6. Settlement of quantified outstanding dues.
(1) An applicant opting for settlement of quantified outstanding dues under this Scheme shall have to pay, by way of settlement, an amount in lieu of his quantified outstanding dues as mentioned in Schedule-I A.
(2) The amount of interest and penalty under any section of the relevant Act shall be waived off for the particular year under the relevant Act for which the applicant has applied for and if the application is found in order for settlement.
Explanation.– The interest leviable under any section of the relevant Act on the quantified outstanding dues shall also be included in the interest mentioned under this clause.
(3) The applicant who has cumulative outstanding tax dues upto Rupees Ten Lakhs (Rs. 10 Lakh only) for all the assessment years in which there are quantified outstanding dues under the relevant Act, shall get a waiver of Rupees One Lakh out of the cumulative outstanding tax dues, if the application is found successful. An application shall be considered successful only if a settlement order in Form OTS-4 is issued to the applicant.
It is further made clear that no such waiver shall be admissible to the applicant having cumulative outstanding tax dues above Rs. 10 Lakhs in all the assessment years under a relevant Act for which he has applied under the scheme.
(4) The applicant willing to avail any benefit including waiver mentioned in sub-clause (3) has to apply under the Scheme.
(5) The applicant may opt to make payment of the amount required to be paid under the Scheme for settlement of his quantified outstanding dues either in lump sum or in such instalments as are listed under Schedule-II of this scheme.
(6) The applicant shall make the payment for the second instalment within sixty days from the date of provisional order of settlement alongwith information in Form OTS-1A.
(7) If payment is not made within the period specified in Schedule-II, the provisional order of acceptance shall be deemed to have been withdrawn and it shall be presumed as if the application was never made and the jurisdictional authority shall issue the order of rejection in FORM OTS-5 accordingly and proceedings under the applicable relevant Act shall be instituted against the applicant.
(8) No refund of the settlement amount paid at any stage under the Scheme shall be allowed under any circumstances. It shall be adjusted out of the quantified outstanding dues against the applicant.
7. Application procedure.
(1) Any applicant, who has quantified outstanding dues under the relevant Act as on the date of submitting application OTS-1 under this scheme, whether or not in appeal before the appellate authority, the Haryana Tax Tribunal, the Punjab and Haryana High Court or the Supreme Court under the relevant Act, may opt to apply under the Scheme for settlement of his quantified outstanding dues;
Provided that he shall withdraw such an appeal fully and unconditionally within a period of sixty days of communication of provisional order of settlement in Form OTS-4A.
(2) The applicant may opt for the scheme within one hundred and eighty days from the appointed day.
(3) The applicant shall apply online in FORM OTS-1 along with proof of payment of the settlement amount or the first instalment, whichever is applicable.
(4) On receipt of FORM OTS-1, a system generated acknowledgement shall be issued electronically to the applicant in FORM OTS-2.
8. Verification of form and processing of application OTS-1.
The procedure for processing of applications shall be in the following manner, namely:-
a. The jurisdictional authority shall first check the application in Form OTS-1 with regard to its appropriate allocation of jurisdiction ward within a period of ten days from acknowledgment. In such cases where the application does not pertain to his ward, it shall be referred to the Deputy Excise and Taxation Commissioner for appropriate allocation. The Deputy Excise and Taxation Commissioner shall allocate correct ward to such application received by him within a period of ten days from the receipt of the request.
b. The jurisdictional authority shall examine and verify the application in Form OTS-1 with regard to its propriety, correctness, computation of quantified outstanding dues and the corresponding settlement amount and legality in accordance with the provisions of the Scheme and relevant Act within a period of forty-five days from the date of its acknowledgment or the date of transfer to appropriate jurisdiction. He shall issue a settlement order in Form OTS-4 in all cases where the claim of the applicant is found to be in order with regard to its self-assessed settlement amount in view of the quantified outstanding dues and the provisions of the Scheme, proof of payment thereof and all other relevant particulars;
or
He shall issue an order of provisional settlement in Form OTS-4A where the claim of the applicant is found to be in order with regard to its self-assessed settlement amount in view of the quantified outstanding dues and the provisions of the Scheme, proof of payment thereof and all other relevant particulars but the applicant opted for instalment or is required to submit proof of withdrawal of appeal.
(e) (i) If there is any deficiency/discrepancy in the application OTS-1, a deficiency
notice in the Form OTS-3 shall be issued to the applicant calling upon him to remove the deficiency/discrepancy and reply to the notice in Form OTS-3A within fifteen days of the issuance of this notice.
(ii) If the applicant removes the deficiency/discrepancy consequent upon the issuance of deficiency notice within the prescribed time to the satisfaction of the jurisdictional authority, an order of settlement in Form OTS-4 or order of provisional settlement in Form OTS-4A shall be passed by him in fifteen days from the receipt of reply in form OTS-3A.
(d) Where the applicant fails to comply with the terms of the notice by way of furnishing a reply in OTS-3A to the said notice and to remove the deficiency/discrepancy, the application shall be rejected for the reasons to be recorded in writing and an order in the form of OTS-5 shall be passed with in fifteen days from receipt of the reply in form OTS-3A.
(e) Such applicant who is interested to opt for the Scheme shall withdraw all the appeals or any other cases pending before the appellate authority, the Haryana Tax Tribunal, the Punjab and Haryana High Court or the Supreme Court under the relevant Act, fully and un-conditionally and submit proof of such withdrawal of appeal in FORM OTS-6 within sixty days from the receipt of FORM OTS-4A to the jurisdictional authority.The order of withdrawal shall be the conclusive proof in this respect.
(f) In case FORM OTS-6 is not furnished within sixty days from the receipt of FORM OTS-4A, it shall be presumed as if the application was never made. The order of rejection of settlement in Form OTS-5 shall be passed and pending proceedings under the applicable relevant Act shall continue against the applicant.
(g) Any proceeding pending before any appellate authority, the Haryana Tax Tribunal, the Punjab and Haryana High Court or the Supreme Court under the relevant Act, shall be kept in abeyance till the provisional order of settlement in form OTS-4A is passed under this scheme, for those applicants who have opted for this scheme.
(h) If the applicant has furnished information by suppressing facts or by providing false information, concealing quantified outstanding dues for any of the years under the relevant Act for which application has been made, the amount claimed to have been deposited is found to be unpaid or re-utilized, the settlement order in OTS-4 or the provisional settlement order in OTS-4A shall be revoked and a rejection order in Form OTS-5 shall be passed by the jurisdictional authority.
(i) Where order of rejection of settlement in FORM OTS-5 isissued, the amount paid under this scheme, if any, by the applicant shall be adjusted against his liabilities under the relevant Act and such amount shall not be refunded in any case.
(j) All the applications under the Scheme shall be processed electronically.
9. Provisions under Rule 142(A) of the Haryana Goods and Services Tax Rules, 2017 for recovery of quantified outstanding dues of existing law
(1) The applicants whose outstanding dues have been uploaded by the jurisdictional authority in FORM GST DRC-07A of the Haryana Goods and Services Tax Rules, 2017 for recovery of such dues under the Haryana Goods and Services Tax Act, 2017 (19 of 2017) shall also be eligible to take the benefit of the scheme.
(2) The jurisdictional authority shall after successful issuance of FORM OTS-4 modify the demand created through FORM GST DRC-07A and issue FORM GST DRC-08A of the Haryana Goods and Services Tax Rules, 2017.
10. Privileges emanating from the final order of settlement
(1) The final order of settlement passed under this Scheme with respect to the amount payable under this Scheme shall be conclusive as to the matter and time stated therein and the applicant shall not be liable, –
(a) to pay any further tax, interest or penalty with respect to the matter and time period covered in the final order of settlement;
(b) to be prosecuted under the relevant Act with respect to the matter and time period covered in the order;
(2) All the matters and time period covered by such order shall not be re-opened in any other proceedings under the relevant Act:
Provided that in case where any material particular furnished in the application is subsequently found to be false, it shall be presumed as if the application was never made and proceedings under the applicable relevant Act shall be instituted against the applicant.
11. No refund of amount already paid before the appointed day as tax, interest or penalty.
Any amount of tax, interest or penalty or any other sum paid/deposited before the appointed day shall not be refunded and shall not be adjusted out of the settlement amount under the Scheme.
12. Restrictions with regard to settlement.
Any amount payable under this scheme shall neither be paid through Input tax nor shall be allowed to be claimed as Input tax by any person under the relevant Act or any other Act.
13. Rectification of errors.
The jurisdictional authority who has passed the settlement order under the Scheme, may rectify such order on his own motion or on application made to him in this regard, within a period of forty five days from the date of issuance of such order to rectify any error(s) which is apparent on the face of record in such order.
14. Removal of difficulty.
If any difficulty arises in giving effect to any provisions of this Scheme, the Government may, by a general or a special order, make such provisions including amendment in forms not inconsistent with the provisions of this Scheme, as may be necessary or expedient for the purpose of removing the said difficulty.
15. Removal of doubt.
In case of any doubt arising out of the Scheme, the decision of the Excise and Taxation Commissioner, Haryana thereon shall be final.
16. Applicant not eligible to opt the Scheme.
The following categories of applicants shall not be eligible for benefits under the Scheme for a particular year under a relevant Act, where,-
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;
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.
17. No Appeal against the final order of settlement.
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.
18. Extension of time period
(1) The Government, either on its own motion or on representation from the stake holders may extend the time period for applying under the Scheme.
(2) The Joint Excise and Taxation Commissioner (Range) on case to case basis may extend time period for issuance of any notice or order to be issued under this scheme by the jurisdictional authority or allocation of correct ward by the Deputy Excise and Taxation Commissioner, for a further period of not more than thirty days for reasons to be recorded in writing.
19. Indemnity
(1) No suit, prosecution or other legal proceeding shall lie against the Government or Indemnity any official/officer of the Government for anything which is done or intended to be done in good faith, in pursuance of the Scheme.
(2) No proceeding shall be commenced against any official /officer merely on the ground of subsequent detection of an error in calculating the amount of quantified outstanding dues payable by the applicant, unless there is evidence of misconduct.
