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CA Final · Indirect Tax Laws · Offences and Penalties and Ethical Aspects under GST

Ananya Traders, a Pune-based registered supplier, applied to the Commissioner for compounding of an offence under GST. The Commissioner called for a report from the concerned officer and was satisfied that full and true disclosure of facts had been made. Under the CGST Rules, within how many days of receipt of the application must the Commissioner either allow it, indicating the compounding amount, or reject it?

The Commissioner must allow the compounding application, indicating the compounding amount, or reject it within ninety days of receiving it. The thirty-day period applies to the applicant, who must pay the compounding amount after receiving the order.

  1. AThirty days
  2. BSixty days
  3. CNinety daysCorrect
  4. DOne hundred and eighty days

Explanation

Rule 162(3) requires the Commissioner to pass an order in FORM GST CPD-02 allowing the application, with the compounding amount and immunity from prosecution, or rejecting it, within ninety days of receipt. Thirty days is the period the applicant gets to pay the compounding amount after the order, so it is the wrong period here.

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