Background:
Earlier, the GST Council in its 50th meeting has recommended to insert Rule 162(3A) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”) for compounding the amount for various offences under Section 132 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”).
Notification:
Now, In order to align the recommendation of the 50th GST Council’s meeting, the CBIC vide Notification No. 38/2023 – Central Tax dated August 04, 2023 has made the following amendments in Rule 162 of the CGST Rules:
- Omitted the words “has co-operated in the proceedings before him” from Rule 162(3) of the CGST Rules
Post amendment the Rule 162 of the CGST Rules read as follows:
(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 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.
- Inserted Rule 162(3A) of the CGST Rules
“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 subsection (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.”
The changes will be made effective from October 01, 2023.
The Notification can be assessed at: https://taxinformation.cbic.gov.in/view-pdf/1009820/ENG/Notifications
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