GST Jamku AICompounding of offences.
Section 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 may 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), (h), (i) and (l) of sub-section (1) of section 132;
(b) [***]
(c) a person who has been accused of committing an offence under clause (b) of sub-section (1) of section 132;
(d) a person who has been convicted for an offence under this Act by a court;
(e) [***]
(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.
Compounding of Offences
Any wrongdoing under this law can be settled through compounding, as outlined in Section 138(1). The Commissioner has the authority to allow compounding either before or after initiating legal proceedings. The individual accused of the offense must make a payment, known as the compounding amount, to the Central Government or the State Government, as prescribed.
Provisions and Exceptions
The application of this section is subject to certain exceptions:
(a) This section does not apply to a person who has already compounded once for specific offenses listed in section 132(1).
(b) [***]
(c) It excludes individuals accused of committing an offense under clause (b) of sub-section (1) of section 132.
(d) Individuals convicted for an offense under this Act by a court are also not eligible.
(e) [***]
(f) Additional classes of persons or offenses may be exempted, as prescribed.
Impact on Other Laws
Compounding under this section does not affect proceedings initiated under any other law. It is essential to note that compounding is only permitted after the payment of taxes, interest, and penalties associated with the offenses.
Ensuring Compliance
To maintain fairness, the Commissioner ensures that compounding is allowed only after the complete settlement of tax, interest, and penalties related to the offenses. This provision aims to strike a balance between allowing settlements and ensuring that financial obligations are met.
Section 138(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 twenty-five per cent. of the tax involved and the maximum amount not being more than one hundred per cent. of the tax involved.
Section 138(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.
Section 138(2): Compounding Offences
In this section, the prescribed amount for compounding offenses is determined, ensuring that it is not less than twenty-five percent of the tax involved and not more than one hundred percent of the tax involved.
Section 138(3): Conclusion of Proceedings
Upon payment of the compounding amount set by the Commissioner, no further actions will be taken under this Act against the accused person for the same offense. Additionally, any ongoing criminal proceedings related to the said offense will be halted and considered abated.
Implications of Compounding Offenses
When an offense is compounded, it involves settling the matter by paying a specified amount. This allows individuals to avoid further legal actions related to the offense.