50th Meeting of the GST Council was held on July 11, 2023 in New Delhi, wherein it was recommended to insert Rule 162(3A) of the Central Goods and Services Tax Rules, 2017 for compounding the amount for various offences under Section 132 of the Central Goods and Services Tax Act, 2017.
Notification:
Accordingly, The CBIC has issued 'the Central Goods and Services Tax (Second Amendment) Rules, 2023' vide Notification No. No. 38/2023- Central Tax dated 04.08.2023 for the following amendments in Rule 162 of the CGST Rules:
Amended Rule 162(3) of the CGST Rules 2017 is 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.
"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. |
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 evade |
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 amendment will be made effective from October 01, 2023.
