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

Mehta Traders applied to the Commissioner in FORM GST CPD-01 to compound an offence under the CGST Rules. The Commissioner allowed the application by an order in FORM GST CPD-02 indicating the compounding amount. Within how many days of receipt of this order must the applicant pay the compounding amount and furnish proof of payment, failing which the order becomes void?

The applicant must pay the compounding amount and furnish proof of payment within thirty days from receipt of the Commissioner's order in FORM GST CPD-02. If payment is not made within this period, the order becomes vitiated and void. The ninety-day period applies to the Commissioner's decision, not to payment.

  1. AFifteen days
  2. BThirty daysCorrect
  3. CSixty days
  4. DNinety days

Explanation

Under the compounding procedure rules, the applicant must pay the compounding amount within thirty days from receipt of the order and furnish proof of payment. If payment is not made in that time, the order is vitiated and void. Ninety days is the period within which the Commissioner must allow or reject the application, not the payment period.

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