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

Kaveri Traders Pvt Ltd, Pune, has paid the tax, interest and penalty in a case and now files an application in FORM GST CPD-01 for compounding of an offence. Under the CGST Rules, 2017, within what period must the Commissioner either allow the application, indicating the compounding amount, or reject it, counted from receipt of the application?

The Commissioner must allow or reject the compounding application within ninety days of receiving it. The order is passed in FORM GST CPD-02. The thirty-day period in the rules applies to the applicant paying the compounding amount, not to the Commissioner's decision.

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

Explanation

Rule 162(3) says the Commissioner, by order in FORM GST CPD-02, may allow the application indicating the compounding amount and grant immunity, or reject it, within ninety days of receipt. Thirty days is the time the applicant gets to pay the compounding amount after receiving the order, so it is a different period.

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