Haryana VAT OTS Scheme, 2026
By CA Ankit Gulgulia (Jain)
The Haryana cabinet on 19th May, 2026 approved the state’s One-Time Settlement Scheme for the recovery of outstanding dues (OTS 2026) under pre-GST tax laws. The scheme aims to reduce legacy litigations and expedite the recovery of outstanding dues under the pre-GST tax laws.
Remember, official notification is yet to be released on public and discussion below is based on media reports and published news bites, so exercise caution and await the notification
The scheme would commence on June 1 and would remain in force for 120 days. Taxpayers can submit applications online during this period on the portal of the Excise and Taxation Department to avail the benefits of the scheme.
The scheme will be applicable to the following Acts — The Haryana Value Added Tax Act, 2003 (6 of 2003), the Central Sales Tax Act, 1956 (Central Act 74 of 1956), the Haryana Tax on Luxuries Act, 2007 (23 of 2007), the Haryana Entertainment Duty Act, 1955 (Punjab Act 16 of 1955), the Haryana General Sales Tax Act, 1973 (20 of 1973), the Haryana Local Area Development Tax Act, 2000 (13 of 2000) and the Haryana Tax on Entry of Goods in to Local Areas Act, 2008 (8 of 2008).
For the assessee whose tax dues are up to Rs 1 lakh in a PARTICULAR assessment year under any of the relevant Acts, the entire due amount including interest and penalty for that particular assessment year is waived under the scheme and he need not apply under the scheme to avail this benefit with respect to that assessment year under the relevant Act.
Relief’s Offered by the Scheme
Key Reliefs Include:
- Waiver of Interest and Penalty
In many cases, taxpayers may get:
- 100% waiver of interest
- 100% waiver of penalty
This can significantly reduce the overall liability, especially in old disputed matters where interest and penalties have become much larger than the principal tax amount itself.
- Relief in Tax Component
The scheme also provides substantial relief even in the principal tax amount in specified categories of disputes.
This makes settlement commercially viable for businesses that were otherwise unwilling to continue lengthy litigation.
- Opportunity to Submit Pending Forms/Documents
Many assessments under VAT/CST laws resulted in heavy demands due to non-submission of prescribed forms. The scheme provides an opportunity to submit such pending forms/documents, subject to verification, which can further reduce outstanding liabilities.
- Installment Payment Facility
- Outstanding dues up to ₹5 lakh – payable in single lump sum
- Dues between ₹5 lakh and ₹25 lakh – payable in two instalments
- Dues above ₹25 lakh – payable in three instalments
Conclusion : Once the official notification is released, one should read the knitty gritty thoroughly before applying. Like one such example is that a lot of times people confuse in whether the application is to be filed for all the assessment years together or it is to be filed for each individual assessment year individually now this can only be cleared by the text of the notification and this is very important as multiple mistakes are done and even just the simple aspect Just to give you an example that’s why it’s important you read the notification properly and then take a decision But nonetheless it is a welcome step.
FCA, CWM (AAFM-US), CBV, CIFRS, R-ID, B.COM (H), RV* (IBBI)
Practising Chartered Accountant in Netaji Subhash Place, New Delhi. He is well connected business oriented professional with specialisation in Taxation (Direct & Indirect) and Corporate Laws and an enriching experience of more than 15 years. He can be contacted ankitgulgulia@gmail.com.