Section 138 - Compounding of offences of CGST ACT, 2017

                 138. (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.

Analysis by Experts

No explanations yet!!! Please, Login to provide explanation for this section.

Never File Wrong GSTR-1

Check your GST numbers in bulk. Check unlimited GST numbers with very cheap packages.

Used by
Browse all sections of CGST ACT, 2017
mode_edit