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Chapter - XIX of CGST Rules, 2017
Offences and Penalties
RULE 162. Procedure for compounding of offences (corresponding section 138)
(1) An applicant may, either before or after the
institution of prosecution, make an application under sub-section (1) of
section
138 in FORM GST CPD-01 to the Commissioner for compounding of an offence.
(2) On receipt of the application, the Commissioner shall call for a report from
the concerned officer with reference to the particulars furnished in the
application, or any other information, which may be considered
relevant for the examination of such application.
(3) The Commissioner, after taking into account the contents of the said
application, may, by order in FORM GST CPD-02, on being satisfied that the
applicant [helldod 1omit[has co-operated in the proceedings before him and]helldod] has made full and
true disclosure of facts relating to the case, allow the application indicating
the compounding amount and grant him immunity from prosecution or reject such
application within ninety days of the receipt of the application.
2[(3A) The Commissioner shall determine the compounding amount under sub-rule (3) as per the Table below:-
TABLE
| S.No. | Offence | Compounding amount if offence is punishable under clause (i) of sub-section (1) of section 132 | Compounding amount if offence is punishable under clause (ii) of sub-section (1) of section 132 |
| (1) | (2) | (3) | (4) |
| 1. | Offence specified in clause (a) of sub-section (1) of section 132 of the Act | Up to seventy-five per cent of the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken, subject to minimum of fifty per cent of such amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken. | Up to sixty per cent of the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken, subject to minimum of forty per cent of such amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken |
| 2. | Offence specified in clause (c) of sub-section (1) of section 132 of the Act | ||
| 3. | Offence specified in clause (d) of sub-section (1) of section 132 of the Act | ||
| 4. | Offence specified in clause (e) of sub-section (1) of section 132 of the Act | ||
| 5. | Offence specified in clause (f) of sub-section (1) of section 132 of the Act | Amount equivalent to twentyfive per cent of tax evaded. | Amount equivalent to twentyfive per cent of tax evaded. |
| 6. | Offence specified in clause (h) of sub-section (1) of section 132 of the Act | ||
| 7. | Offence specified in clause (i) of sub-section (1) of section 132 of the Act | ||
| 8. | Attempt to commit the offences or abets the commission of offences mentioned in clause (a), (c) to (f) and clauses (h) and (i) of subsection (1) of section 132 of the Act | Amount equivalent to twentyfive per cent of such amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken. |
Amount equivalent to twentyfive per cent of such amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken. |
Provided that where the offence committed
by the person falls under more than one category specified in the Table above,
the compounding amount, in such case, shall be the amount determined for the
offence for which higher compounding amount has been prescribed.]
(4) The application shall not be decided under sub-rule (3) without affording an
opportunity of being heard to the applicant and recording the grounds of such
rejection.
(5) The application shall not be allowed unless the tax, interest and penalty
liable to be paid have been paid in the case for which the application has been
made.