Amendments to Section 138 of the Central Goods and Services Tax Act
Section 138 of the Central Goods and Services Tax Act has been amended to modify the provisions related to compounding of offences. Firstly, in sub-section (1), the amendment changes clause (a) to specify that a person who has previously been allowed to compound for certain offences listed in section 132(1) clauses (a) to (f), (h), (i), and (l) is covered under this provision. Clause (b) has been removed entirely. Clause (c) is updated to include individuals accused of committing an offence under clause (b) of section 132(1). Additionally, clause (e) is also omitted.
In sub-section (2), the amendment revises the monetary penalties associated with offences. Previously, the penalty was set at the higher of ten thousand rupees or fifty percent of the tax involved, with a maximum not less than thirty thousand rupees or one hundred and fifty percent of the tax. The new provision simplifies this by setting the minimum at twenty-five percent of the tax involved and the maximum at one hundred percent of the tax involved. These changes aim to streamline the compounding process and adjust financial penalties to be more directly proportional to the tax involved.
Note: It is an AI generated summary for reference purpose only.
Amendment of section 138.
157. In section 138 of the Central Goods and Services Tax Act,—
(a) in sub-section (1), in the first proviso,—
(i) for clause (a), the following clause shall be substituted, namely:—
"(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";
(ii) clause (b) shall be omitted;
(iii) for clause (c), the following clause shall be substituted, namely:—
(b) in sub-section (2), for the words "ten thousand rupees or fifty per cent. of the tax involved, whichever is higher, and the maximum amount not being less than thirty thousand rupees or one hundred and fifty per cent. of the tax, whichever is higher", the words "twenty-five per cent. of the tax involved and the maximum amount not being more than one hundred per cent. of the tax involved" shall be substituted.
