(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 1[has co-operated in the proceedings before him and] 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 twenty-five per cent of tax evaded.
Amount equivalent to twenty-five 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 sub-section (1) of section 132 of the Act
Amount equivalent to twenty-five 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 twenty-five 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.
(6) The applicant shall, within a period of thirty days from the date of the receipt of the order under sub-rule (3), pay the compounding amount as ordered by the Commissioner and shall furnish the proof of such payment to him.
(7) In case the applicant fails to pay the compounding amount within the time specified in sub rule (6), the order made under sub-rule (3) shall be vitiated and be void.
(8) Immunity granted to a person under sub-rule (3) may, at any time, be withdrawn by the Commissioner, if he is satisfied that such person had, in the course of the compounding proceedings, concealed any material particulars or had given false evidence. Thereupon such person may be tried for the offence with respect to which immunity was granted or for any other offence that appears to have been committed by him in connection with the compounding proceedings and the provisions the Act shall apply as if no such immunity had been granted.”;
(vii) for “FORM GST-RFD-01, FORM GST-RFD-02, FORM GST-RFD-04, FORM GST-RFD-05, FORM GST-RFD-06, FORM GST-RFD-07 and FORM GST-RFD-10”, the following FORMS shall respectively be substituted, namely:-
“FORM GST-RFD-01, FORM GST-RFD-02, FORM GST-RFD-04, FORM GST-RFD-05, FORM GSTRFD-06, FORM GST-RFD-07, FORM GST-RFD-10 and FORM GST-RFD-11”.
Notes –
  1. Omitted vide NN 38/2023-CT, dated 4-8-2023, w.e.f. 1-10-2023.
  2. Inserted vide NN 38/2023-CT, dated 4-8-2023, w.e.f. 1-10-2023.