GST Compounding of Offences: Application Guide

GST India ka unified indirect tax hai jo compliance ko structured banata hai; ye guide is topic ke rules aur practical steps cover karti hai.

In GST, ‘compounding of offence’ refers to a process where a taxpayer pays a monetary sum to avoid criminal prosecution. This acts as a resolution between the taxpayer and the tax authority, leading to the termination of criminal proceedings and preventing further penalties for the same infraction. For more details on prosecution, refer to Prosecution under GST.

Steps to Apply for Compounding of an Offence under GST

Start by logging into the GST portal. From the dashboard, proceed to ‘Services’, then ‘User services’, and finally ‘My Applications’.

On the ‘My Applications’ page, choose ‘Compounding Application’ as the application type, then click ‘New Application’. The system will then show the ‘Compounding Application’ page.

Complete the required fields with the following details:

• Indicate if an order for initiating prosecution has already been issued. If affirmative, input the prosecution notice number and click ‘Search’. This action will automatically populate prosecution details in subsequent fields (2, 3, and 4), allowing you to proceed directly to point 5. If negative, specify the order reference number under ‘Any other order against which prosecution is contemplated?’. The taxpayer must manually complete these particulars.
• State the specific provisions of the Act that have been violated. Select all relevant cases from the provided options.
• Enter the total amount of evasion. Specify the sum under each major and minor financial head.
• Indicate the period during which the offence occurred. Input the start and end dates.
• Clarify if this is the first offence committed. Choose ‘Yes’ or ‘No’. If ‘Yes’, advance to point 6. If ‘No’, provide specifics of prior instances within 250 characters before continuing.
• Confirm if any other legal proceedings for the identical offence are being considered under a different statute. Answer ‘Yes’ or ‘No’. If ‘Yes’, furnish details of previous cases within 250 characters and proceed. If ‘No’, move to the document upload section.
• Supporting document upload: This section is optional; applicants may upload relevant supporting documents if necessary.
• Declaration and verification: Tick the declaration box, input verification details, and select the authorized signatory’s name and the location.

Next, click ‘Preview’ to review the application in Form GST CPD-01, then select ‘Proceed to File’. A warning will appear; confirm by clicking ‘Proceed to File’ again.

Finally, submit the application using either a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). An application reference number will be generated upon successful submission.

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Frequently Asked Questions

Compliance kya chahiye?

Timely returns (GSTR-1, 3B), accurate ITC, records maintenance.

Return miss par?

Late fee (₹50/day, nil ₹20/day) + interest; ITC block ho sakti.

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