The State Government of Haryana has notified the One Time Settlement Scheme for Recovery of Outstanding Dues, 2026 (“the Scheme”) vide Notification No. 07/ST-1 dated 29 May 2026 (“the Notification”). The Scheme has come into effect from 01 June 2026 and shall remain in force upto 30 September 2026. The key aspects of the Scheme are summarized below:

Applicability of the Scheme on the outstanding demand due under specific statues 

The Scheme provides for rebate of tax, as well as settlement of outstanding demands and disputes arose under the following statutes:

1. The Haryana Value Added Tax Act, 2003;
2. The Central Sales Tax Act, 1956;
3. The Haryana Tax on Luxuries Act, 2007;
4. The Haryana Entertainment Duty Act, 1955;
5. The Haryana General Sales Tax Act, 1973;
6. The Haryana Local Area Development Tax Act, 2000;
7. The Haryana Tax on Entry of Goods into Local Areas Act, 2008.

The above statues shall hereinafter be collectively referred to as the “Acts”.

Mechanism for rebate of tax and/ or waiver of interest and penalty along with payment structure

• The Scheme shall be applicable to any assessee/ person liable to pay any quantified outstanding dues under the Acts, whether registered or unregistered, who seeks to avail the benefits of the Scheme by making an application in the prescribed manner
• The Applicant may opt for settlement under one or more of the Acts, however, separate applications are required for each Act and for each assessment year selected for settlement
• The Applicant shall be entitled to avail the benefit of rebate of tax as under:

a. Under the Haryana General Sales Tax Act, 1973

b. Other Acts (other than the Haryana General Sales Tax Act, 1973)

• For all assessment years for which an application is filed under the Scheme and found to be in order, the interest and penalty levied under the relevant Acts shall be fully waived. Further, the Applicant may discharge the Settlement Amount either in lump sum or specified instalments
• An additional Declaration/Document-Based Waiver (DLW) is available to Applicants where dues arise due to non-submission of statutory forms (VAT D-1, VAT D-2, Tax Invoice/C-4, Form-C, Form-H, Form-F, E-1 and E-2) under the Haryana VAT Act, 2003, and the Central Sales Tax Act, 1956, subject to verification of the submitted statutory forms

Other key points

• If the amount has already been deposited prior to the appointed day of the Scheme against the demand created, then such deposit shall be
  1. Adjusted as per the purpose specified in the deposit challan/receipt and in the absence of such specification, it shall be adjusted firstly against the tax liability, then the interest, and thereafter the penalty for the relevant assessment year under the relevant Act
  2. Adjusted only against the liability of the specific assessment year for which they were made, and no benefit shall be allowed where the assessment year is not mentioned in the challan/receipt
• If the entire tax liability for a relevant assessment year has already been discharged before the appointed day, the settlement amount towards interest and penalty for that year shall be NIL
• No refund of tax, interest and penalty shall be granted under any circumstances, and no excess amount shall be carried forward or adjusted against any other year or liability under the Scheme
• Any amount payable under this scheme cannot be paid through input tax credit and no input tax credit can be claimed thereon by any person under the relevant Act or any other Act
• No appeal shall lie against an order of settlement or rejection passed under the Scheme

Click to download a copy of the Notification