Question 21 - Can offences under CGST/SGST Act be compounded? - Faq On GST (2nd Edition) Dated 31.3.2017

Q 21. Can offences under CGST/SGST Act be compounded? Ans. Yes. As per section 138 of the CGST/SGST Act, any offence, other than the following, may upon payment of the prescribed (compounding) amount be compounded and such compounding is permissible either before or after the institution of prosecution: Offences numbered 1 to 6 of the 12 major offences (outlined in Q. 16 above), if the person charged with the offence had compounded earlier in respect of any of the said offences; Aiding/abetting offences numbered 1 to 6 of the 12 major offences, if the person charged with the offence had compounded earlier in respect of any of the said offences; Any offence (other than the above offences) under any SGST Act/IGST Act in respect of a supply with value exceeding ₹ 1 crore, if the person charged with the offence had compounded earlier in respect of any of the said offences; Any offence which is also an offence under NDPSA or FEMA or any other Act other than CGST/SGST; Compounding is to be permitted only after payment of tax, interest and penalty and compounding shall not affect any proceeding already instituted under any other law.