How can I file Application for Compounding of Offence (Form GST CPD-01) and take subsequent actions?

Follow these steps to file Application for Compounding of Offense (Form GST CPD-01) and take the next steps:

A. File an Application for Compounding of Offence (Form GST CPD-01)

B. Open the Application’s Case Details screen by searching for your filed Application in “My Applications” screen

C. Take action using APPLICATIONS tab of Case Details screen: View your Filed Application

D. Take action using NOTICES tab of Case Details screen:

D(1). View issued Notices

D(2). File Reply to the issued Notices

E. Take action using REPLIES tab of Case Details screen:

E(1) View Filed Replies

E(2) File Counter-replies

F. Take action using ORDERS tab of Case Details screen:

F(1). View the Order issued on that Application

F(2). Pay Compounding Fee

F(3). Initiate Rectification

G. Take action using RECTIFICATION tab of Case Details screen: View the filed Rectification Applications

Click each hyperlink above to know more.

A. File an Application for Compounding of Offence (Form GST CPD-01)

To file a Form GST CPD-01 Application for Compounding of Offence, do the following:

Note:

Any Taxpayer may file the Application for Compounding of Offence in the following two cases:

  • Prosecution is instituted: This means that a Taxpayer has been given an order to start a criminal case against them. A concerned tax official would have sent him or her a “Prosecution Notice” about the same thing.
  • Prosecution is contemplated: This means that the taxpayer is filing this application for Compounding of Offence on his or her own free will. A taxpayer can do this if he or she has received an order from a concerned tax official for any case involving the commission of an offence listed in Section 132.

1. Access the www.gst.gov.in URL. The Home page for GST is shown.

2. Use valid credentials to log in to the portal.

3. The dashboard page is shown.Click Dashboard > Services > User Services > My Applications  

4.The page My Applications is shown. In the Application Type field, select “Compounding Application” and then click the NEW APPLICATION button.

5.The page for the Compounding Application is shown. The name of the application type and your information (GSTIN, Legal Name, and Registration Status) are in the yellow header at the top. Click the BACK button to go back to the page you were on before, or fill in the fields as shown in the steps below.

5a. In the “Has any order been made to start a prosecution?” field, choose “Yes” or “No” from the radio buttons.

5a. (i) If the answer is “yes” and an order to start a prosecution has been made: In the Prosecution Notice No. field, enter the Notice Number and click the SEARCH button. The following fields are filled in automatically:(Notice) “Date“, “The violation of provisions of the Act for which prosecution is instituted or contemplated:”, “Amount of evasion involved, if any“, “Period of Offence“. Now, perform the Step 5e.

5a. (ii) In case of “No” if no Order for initiation of prosecution has been issued: In the “Any other order against which prosecution is contemplated?” field, enter the Order/Reference Number and click the SEARCH button. (Order) Date gets auto-populated.  

5b. In the “The violation of provisions of the Act for which prosecution is instituted or contemplated:” field, select the applicable radio button(s). You can select more than one radio button.

5c. In the “Amount of evasion involved, if any” field, enter the amount across the respective major and minor heads.

5d. In the “Period of Offence” field, select the “From” and “To” dates using the calendar.

5e. In the “Whether this is the first offence under the Act” field, select the “Yes” or “NO” radio button.

5e. (i). In the case of “Yes,” if this is the first offence under the Act,: Perform the following Step 5f.

5e. (ii).If you answered “No,” and this is not your first offence under the Act, fill out the text box with as much information as you can in 250 characters or less.Then, perform the following step.

5f. In the “Whether any proceedings for the same offence is contemplated under any other law” field, select the “Yes” or “NO” radio button.

5f. (i) In case of “Yes” if any proceedings for the same offence is contemplated under any other law: Enter the relevant details in the text-box in maximum 250 characters. Then, perform the following step.

5f. (ii) In case of “No”if no proceedings for the same offence is contemplated under any other law: Perform the following Step 5g.

5g. If required, in the Upload Supporting Documents, if any field, you can also upload supporting documents. This is not a mandatory field. Enter document description and click the Choose File button. ADD DOCUMENT button gets displayed. Click it to upload the document(s) from your machine. You can delete the uploaded document by clicking the DELETE button and upload again.

5h. In the Declaration field, select the two check-boxes.

5i. Enter Verification details. The “Designation/ Status” and “Date” fields is auto-populated based on the current system date.

5j. Click PREVIEW to download and review your application. Once you are satisfied, click the PROCEED TO FILE button.

5k. A warning message is shown. Click the PROCEED button.

6. Submit Application page is displayed. Click SUBMIT WITH DSC or SUBMIT WITH EVC.

7. Acknowledgement page is shown. To download the filed application, click the DOWNLOAD button or click Go To My Applications link go back to My Applications page.

Note:

Once the application is filed, following actions take place on the GST Portal:

  • Status of the application on the GST Portal is changed to “Compounding Application Submitted.”
  • You will also get a message on your registered mobile phone and email telling you that the application was successfully filed and the ARN was made.
  • The Application will be sent to the person in charge, who will then decide what to do with it.

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B. Searching for your filed Application in “My Applications” Screen

To search for the submitted applications and open the related ARN on the GST Portal, perform following steps:

1. Go to the www.gst.gov.in URL. The GST Home page is shown.

2. Login to the portal with valid credentials.

3.The dashboard page is shown. Click Dashboard > Services > User Services > My Applications  


4. My Applications page is shown. In the Application Type field, select “Compounding Application” from the drop-down list. Also pick the submission period in the From Date and To Date fields, and then click SEARCH.

5.Applications are shown based on your Search criteria. Click on the link to the ARN/RFN you want to open.

6. Case Details page is displayed. From this page, you can click on the tabs provided at the left-hand side of the page to view and download their related details.

Go back to the Main Menu

C. Take action using APPLICATIONS tab of Case Details screen: View your Filed Application

To view your filed Application Details, perform following steps:

1. If it’s not already selected, click the APPLICATIONS tab on the Case Details page for that application. On this tab, you can choose to see the filed application and any supporting documents in PDF format.

2.Click the “View” link in the “View Documents” column to download and view the document.

Go back to the Main Menu

D(1). Take action using NOTICES tab of Case Details screen: View Issued Notices

Follow these steps to see the Notices sent to you by the Tax Official in charge of your Application for Compounding of Offence:

  1. If it isn’t already selected, click the NOTICES tab on the Case Details page of that application. This tab shows you all the notices (Hearing Notice/Adjournment) sent to you by the Tax Official..
  1. In the “Documents” column, click the name of the document(s) you want to download and view on your computer.

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D(2). Take action using NOTICES tab of Case Details screen: File Reply to the Issued Notice

Follow these steps to respond to the notices sent to you by the relevant tax official in response to your Application for Compounding of Offence:

  1. On the Case Details page of that particular application, if the NOTICES tab is not already selected, click it. This tab shows you all the notices (Hearing Notice/Adjournment) that the concerned Tax Official sent to you.
  1. Choose the radio button next to the Notice you want to respond to. The REPLY button is turned on. Click the enabled REPLY button.
  1. The REPLY page is displayed. The following fields are auto-populated—Name of the respondent, Notice Reference No, Date of communication of Notice. Fill in the other fields with the information shown in the next steps. Click “Back” to go to the page you were on before.

3a. In the Details of Reply field, click Choose File to upload the document(s) related to your reply.

3b. You can also upload supporting documents if asked to do so in the Upload Supporting Documents, (if any) field. This field is not required. Type in a description of the document and then click the Choose File button. The ADD DOCUMENT button shows up. Click on it to send the file(s) from your computer. You can get rid of the document you just uploaded by clicking the “DELETE” button and then uploading it again.

3c. Enter Verification details. The current system date is used to fill in the “Designation/Status” and “Date” fields.

3d. Click on the “PROCEED” button.

3e. A warning popup is displayed. Click the PROCEED button in the popup as well.

4. Submit Application page is displayed. Click SUBMIT WITH DSC or SUBMIT WITH EVC.

5. Acknowledgement page is displayed with the generated Reply Reference number. Click the OK button.

6. The updated REPLIES tab is shown, with a table that shows the record of the filed reply. Click the Documents section of the table to download the files.

7. Once the Taxpayer files reply, following actions take place on the GST Portal:

  • On the GST Portal, the ARN Status is changed to “Reply submitted.”
  • All of the relevant Tax Officials will be notified about the filed reply through their registered email.
  • The record of the filed answer is added to the Taxpayer’s dashboard.He/she can view it from the following navigation: Services > User Services > My Applications > REPLIES.
  • The record of the filed reply is added to the dashboards of all the relevant Tax Official roles.

Go back to the Main Menu

E(1). Take action using REPLIES tab of Case Details screen: View Filed Replies  

Follow these steps to see the answers you or other tax officials gave to your Application for Compounding of Offence:

  1. On the Case Details page of that particular application, select the REPLIES tab. This tab will display the replies that you or the concerned Tax Officials have filed on the issued Notices.
  1. In the “Documents” column, click the document name(s) to download them into your machine and view them.

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E(2). Take action using REPLIES tab of Case Details screen: File Counter-replies

To file counter- replies after a concerned Tax Official has filed reply against your Application for Compounding of Offence, perform following steps:

  1. On the Case Details page of that particular application, click the REPLIES tab. This tab will show the responses that you or the relevant Tax Officials have sent to the Notices. Choose the radio button next to the Reply you want to respond to. The REPLY button is enabled. Click the checked REPLY button.
  1. The REPLY page is displayed. Follow the steps you would have performed to file your reply to the issued Notices. Click here to revisit those steps.

3. Once the Taxpayer files a counter-reply, following actions take place on the GST Portal:

  • ARN Status on the GST Portal gets updated to “Reply submitted”.
  • All concerned Tax Officials will be intimated about the filed reply via their registered email.
  • Dashboard of the Taxpayer is updated with the record of the filed reply. He/she can view it from the following navigation: Services > User Services > My Applications > REPLIES.
  • Dashboard of all the concerned Tax Official roles is updated with the record of the filed reply.

Go back to the Main Menu

F(1). Take action using ORDERS tab of Case Details screen: View the Order Issued on that Application

To view and download the order issued on your Application for Compounding of Offence, perform following steps:

1. On the Case Details page of that particular application, click the ORDERS tab. On this tab, you can choose to view the issued order and all the documents it came with in PDF mode. Compounding can be approved or turned down by the right authority.

  1. In the “Documents” column, click the document name(s) to download them into your machine and view them.

Note1:  

Additionally, once the concerned authority issues an Order, following actions will take place on the GST Portal:

  • Taxpayer and the concerned Tax Official will get a message on their registered mobile phone and email telling them about the issued order.
  • If the relevant authority approves the application: The ARN’s status will be changed to “Compounding allowed.”
  • If the appropriate authority turns down the application request, the ARN’s status will change to “Compounding Rejected,” and the following will happen:
  • If the complaint has been filed with the Magistrate/Court of competent jurisdiction, nothing will be done, and the prosecution will continue.
  • If no complaint has been filed with the Magistrate/Court of competent jurisdiction, the concerned Tax official will move forward with prosecution.

Note2:  

The person in charge can decide at any time during the process of the Compounding Application whether or not to cancel the Compounding. If he or she does, the status of the ARN will change to “Compounding Withdrawn,” and the taxpayer or tax officials won’t be able to do anything with the withdrawn application after that.

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F(2). Take action using ORDERS tab of Case Details screen: Pay Compounding Fee

To pay compounding fee in order to avoid further proceedings against you by the department, perform following steps:

Note:

You can only pay the Compounding Fee if the relevant authority approves your request by writing “Compounding allowed” on your Application for Compounding of Offence.
If you don’t pay the Compounding fee within 30 days, the Order will be cancelled.
The only way to pay the compounding fee is through the cash ledger. ITC can only be used to pay your tax bill. Taxes will be paid based on the rules that are in place.

1. On the Case Details page of that particular application, click the ORDERS tab. Click the PAY FEE button below the table containing “Compounding allowed” Order.

2. Payment FEE page gets displayed with the table containing the Fee applicable as per the Act and the difference of amount which is available in your Cash Ledger versus the amount required in Cash Ledger to pay the applicable fee . If “Amount required in Cash Ledger” column is not “Nil”, click the “DEPOSIT IN CASH LEDGER” button to generate a challan and deposit money in the Electronic Cash Ledger. Otherwise, click the “UTILIZE CASH” button to make payment using the cash present in your Electronic Cash Ledger.

Note: On clicking the “DEPOSIT IN CASH LEDGER” button, the challan page will get displayed. Click here to know how to generate challan and deposit cash in the cash ledger.

3. On clicking the ““UTILIZE CASH” button, the Acknowledgement page gets displayed with the generated PRN. Click OK.

4. The updated Orders tab is displayed. Also, note that as you have now paid the compounding fee the “PAY FEE” button is disabled.

Note:

Once the Compounding Fee is paid, following actions take place on the GST Portal:

  • Status of the ARN will get updated to “Compounding Fee paid”.
  • If the compliant has been filed with the Magistrate/Court of competent jurisdiction, the concerned Tax official will withdraw the complaint.
  • If no compliant has been filed with the Magistrate/Court of competent jurisdiction, no prosecution proceedings willl be initiated.

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F(3). Take action using ORDERS tab of Case Details screen: Initiate Rectification

In case you notice an error apparent from the face of the order, you can file rectification application against the Compounding Order passed by the concerned authority.

Note:

  • You can submit the Application for rectification within <three months> from the date of Order sought to be rectified.
  • No rectification shall be allowed after a period of six months from the date of issue of such decision or Order and if the rectification is purely in the nature of correction of a clerical or arithmetical error, the limitation of six months will not apply.

To initiate rectification, perform following steps:

1. On the Case Details page of that particular application, click the ORDERS tab. Select the radio button against the Order for which you want to initiate rectification. The INITIATE RECTIFICATION button gets enabled. Click the enabled INITIATE RECTIFICATION button.

2. “Submission of Rectification request” page is displayed. The following fields are auto-populated—Order Reference No & Date of communication of Order. Enter details in the other fields as mentioned in the following steps.

2a. In the Details of Rectification field, click Choose File to upload the document(s) containing details of the rectification that needs to be done.

2b. If required, in the Upload supporting documents field, you can also upload supporting documents. This is not a mandatory field. Enter document description and click the Choose File button. ADD DOCUMENT button gets displayed. Click it to upload the document(s) from your machine. You can delete the uploaded document by clicking the DELETE button and upload again.

2c. Enter Verification details. The “Designation/ Status” and “Date” fields is auto-populated based on the current system date.

2d. Click the PROCEED TO FILE button. A warning popup is displayed in case. Click PROCEED in the popup.

Note: In case the difference between the date of the Order and rectification application filed is more than 6 months, an information message shall pop up asking for confirmation “Do you still want to file the Rectification application as the period exceeds 6 months from the date of the order”.

4. Submit Application page is displayed. Click SUBMIT WITH DSC or SUBMIT WITH EVC.

5. Acknowledgement page is displayed with the generated Reference number. Click the OK button.

6. The updated RECTIFICATION tab is displayed, with the record of the filed rectification application request in a table and the Status updated to “Rectification request submitted“. Click the documents in the Details of Rectification section of the table to download them.

Note:

Once a Rectification request is submitted by a Taxpayer, following actions take place on the GST Portal:

  • Dashboard of Taxpayer and the concerned Tax Officials is updated with the record of the submitted Rectification request.
  • Status of the ARN on the GST Portal gets updated to “Rectification request submitted”.

Go back to the Main Menu

G. Take action using RECTIFICATION tab of Case Details screen: View the Filed Rectification Applications

To view the Rectification Applications filed by the Taxpayer or the concerned Tax Official, perform following steps:

  1. On the Case Details page of that particular application, select the RECTIFICATION tab, if it is not selected by default. This tab displays all the rectification applications submitted by you or the concerned Tax Officials.
  1. In the “Details of Rectification” column, click the document name(s) to download them into your machine and view them.

Note:

Once a Rectification request is submitted by a Taxpayer, the concerned authority may either accept the request or reject it. However, in case the Order which need to be rectified has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit then, it cannot be passed unless the Applicant has been given an opportunity of being heard.

In case of Acceptance:

  • The concerned authority issues the Rectification Order. Dashboard of Taxpayer and the concerned Tax Officials is updated with the record of the issued Order. Taxpayer can access the Rectification Order from the ORDERS tab.
  • Status of the ARN on the GST Portal gets updated to “Rectification order passed”.

In case of Rejection:

  • The concerned authority issues the Order. Dashboard of Taxpayer and the concerned Tax Officials is updated with the record of the issued Order. Taxpayer can access the Order from the RECTIFICATION tab.
  • Status of the ARN on the GST Portal gets updated to “Rectification request rejected”.

Go back to the Main Menu

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