#PunjabCabinet #OTS2025 #IndustryRevival #PunjabEconomy #EaseOfDoingBusiness #RiceMillersOTS #PunjabGST #IndustrialGrowth #BhagwantMann #PunjabDevelopment
Chandigarh: In a major push to strengthen Punjab’s industrial and commercial ecosystem, the Punjab Cabinet, led by Chief Minister Bhagwant Singh Mann, on Wednesday approved several crucial initiatives aimed at reviving industries, reducing litigation, and easing compliance for businesses.
The decisions, taken during a Cabinet meeting held in Chandigarh, reflect the government’s focus on putting the state’s economy on a high-growth trajectory by ensuring smoother industrial operations, boosting investor confidence, and reducing legacy disputes that have burdened enterprises for years.
Launch of Punjab One Time Settlement (OTS) Scheme for Recovery of Outstanding Dues, 2025
The Cabinet announced the Punjab One Time Settlement Scheme (OTS) for Recovery of Outstanding Dues, 2025, which will be implemented from October 1 to December 12, 2025. This scheme is expected to provide long-awaited relief to businesses dealing with legacy tax disputes.
According to the Chief Minister’s Office, the scheme will apply to taxpayers whose assessments have been framed till September 30, 2025, and where rectification, revision, or amendment orders have been passed under key legislations such as:
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Punjab General Sales Tax Act, 1948
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Central Sales Tax Act, 1956
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Punjab VAT Act, 2005
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Punjab Infrastructure Development and Regulation Act, 2002
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Punjab Entertainment Duty Act, 1955
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Punjab Entertainment Tax (Cinematography Shows) Act, 1954
Relief Structure Under OTS:
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Tax due up to ₹1 crore → 100% waiver on interest & penalty, plus 50% waiver on tax amount
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Tax due above ₹1 crore up to ₹25 crore → 100% waiver on interest & penalty, plus 25% waiver on tax amount
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Tax due above ₹25 crore → 100% waiver on interest & penalty, plus 10% waiver on tax amount
This move will not only reduce the compliance burden for businesses but also help the state government in recovering long-pending dues while unclogging the judicial system from tax litigation cases.
OTS for Rice Millers: Reviving Defunct Units
In a parallel step, the Cabinet also approved the One Time Settlement Policy for Rice Mills, 2025. This scheme aims to resolve long-pending disputes between rice millers and state procurement agencies.
For years, several rice millers had been unable to deposit their outstanding dues, leading to them being declared defaulters. Legal and arbitration proceedings had dragged on, leaving many mills non-functional.
The newly approved OTS scheme will:
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Enable millers to settle accounts with procurement agencies.
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Revive sick rice units, helping them qualify for future allotments of paddy for custom milling.
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Reduce litigation and legal costs for state agencies.
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Ensure smoother and faster lifting of paddy from mandis during the Kharif Marketing Season (KMS).
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Generate new employment opportunities through revival of non-operational industrial units.
The scheme is also expected to benefit farmers indirectly by ensuring timely procurement and processing of paddy during peak harvesting season.
Amendment to Punjab Apartment and Property Regulation Act, 1995
To address urban planning challenges and ensure systematic growth of colonies and residential areas, the Cabinet gave approval to amend Section 5(1), Section 5(3)(ii), and Section 5(8) of the Punjab Apartment and Property Regulation Act, 1995 (PAPRA).
Officials stated that the amendments will help in ensuring planned development of housing colonies, prevent unregulated construction, and mitigate problems faced by the general public due to haphazard layouts and inadequate infrastructure.
Concurrence for Amendments in Punjab GST Act, 2017
In line with the recent amendments made to the Central Goods and Services Tax (CGST) Act, 2017 by the Finance Act, 2025, the Punjab Cabinet has also approved similar amendments in the Punjab Goods and Services Tax Act, 2017.
The move is aimed at ensuring better tax compliance while facilitating ease of doing business for taxpayers. This alignment with the GST Council’s recommendations will bring Punjab’s tax structure in sync with the national framework, thereby reducing ambiguity for businesses operating across states.
Strategic Push for Industrial Revival
By approving these schemes and reforms, the Punjab government has signaled its determination to revive industrial units, reduce pending disputes, and simplify compliance. The dual OTS policies—one for general trade and industry, and the other specifically for rice millers—highlight the government’s effort to address sector-specific challenges.
Chief Minister Bhagwant Singh Mann reiterated that these initiatives are part of the state’s larger vision to make Punjab a hub for investment, industrial revival, and job creation. The focus remains on reducing red tape, clearing legacy issues, and ensuring smooth functioning of industrial units.
Key Takeaways:
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OTS 2025 for Recovery of Outstanding Dues: Relief through waivers on tax, penalty, and interest.
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OTS for Rice Millers: Revival of defunct mills, reduction in litigation, boost to paddy procurement.
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PAPRA Amendments: Ensuring planned urban and housing growth.
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Punjab GST Act Amendments: Streamlining state tax laws with central GST framework.
These reforms are expected to provide a much-needed boost to Punjab’s economy, encourage industrial activity, and create a more business-friendly environment.
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#PunjabCabinet #OTS2025 #IndustryRevival #PunjabEconomy #EaseOfDoingBusiness #RiceMillersOTS #PunjabGST #IndustrialGrowth #BhagwantMann #PunjabDevelopment
