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Applicable Section: Section 138 of Goods & Services Tax Act, 2017
Applicable Rule: Rule 162(1) of Central Goods and Services Tax Rules, 2017
Introduction:
In case of compounding of offence, an applicant may, either before or after the institution of prosecution make application under Section 138(1) in Form GST CPD-01 to the Commissioner.
On the receipt of the application, the Commissioner shall call for a report from the concerned officer and after being satisfied that the applicant has made full and true disclosure of the facts allow the application by order in FORM GST CPD-02, indicating the compounding amount and grant him immunity from prosecution or reject such application within ninety days of the receipt of the application.
Calculation of Compounding Amount:
The Commissioner shall determine the compounding amount under sub-rule (3) as per the Table below:
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.
Other Pointers to be kept in mind:
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