THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
OFFENCES AND PENALTIES
Section 138:
Compounding of offences.
(1) Any offence under this Act may, either before or after the
institution of prosecution, be compounded by the Commissioner on payment, by
the person accused of the offence, to the Central Government or the State
Government, as the case be, of such compounding amount in such manner
as may be
prescribed:
Provided that nothing contained in
this section shall apply to—
a)
a
person who has been allowed to compound once in respect of any of the offences
specified in clauses (a) to (f) of sub-section (1) of
section 132 and the
offences specified in clause (l) which are relatable to offences specified in
clauses (a) to (f) of the said sub-section;
b)
a
person who has been allowed to compound once in respect of any offence, other
than those in clause (a), under this Act or under the provisions of any State
Goods and Services Tax Act or the Union Territory Goods and Services Tax Act or
the Integrated Goods and Services Tax Act in respect of supplies of value
exceeding one crore rupees;
c)
a
person who has been accused of committing an offence under this Act which is
also an offence under any other law for the time being in force;
d)
a
person who has been convicted for an offence under this Act by a court;
e)
a
person who has been accused of committing an offence specified in clause (g) or
clause (j) or clause (k) of sub-section (1) of
section 132; and
f)
any
other class of persons or offences as may be prescribed:
Provided
further that any compounding allowed under the provisions of this section shall
not affect the proceedings, if any, instituted under any other law:
Provided also that compounding shall be
allowed only after making payment of tax, interest and penalty involved in such
offences.
(2) The amount for compounding of offences under this section shall be such as
may be prescribed, subject to the minimum amount not being less than ten
thousand rupees or fifty per cent of the tax involved, whichever is higher, and
the maximum amount not being less than thirty thousand rupees or one hundred
and fifty per cent. of the tax, whichever is higher.
(3) On payment of such compounding amount as may be determined by the
Commissioner, no further proceedings shall be initiated under this Act against
the accused person in respect of the same offence and any criminal proceedings,
if already initiated in respect of the said offence, shall stand abated.