Filing Application for Compounding of Offence (Form GST CPD-01) and Taking Actions in the Subsequent Proceedings

1. What is Form GST CPD-01?

Form GST CPD-01 is Application for Compounding of Offence. Any Taxpayer can file this application in the following two cases:

• Prosecution is instituted: This means that an Order for initiation of prosecution has been issued against the Taxpayer. He/she would have received a Prosecution Notice, issued by a Tax Official, regarding the same.
• Prosecution is contemplated: This means that the taxpayer is voluntarily filing this application for Compounding of Offence. In this case, he/she might have received an Order, issued by a Tax Official.

2. What happens on the GST Portal once the Form GST CPD-01 is filed by a Taxpayer?

Once the Form GST CPD-01 is filed, following actions take place on the GST Portal:

• Dashboard of Taxpayer and the Tax Officials is updated with the record of the filed Application.

• Status of the application on the GST Portal gets updated to “Compounding Application Submitted”.
• Taxpayer will also receive an intimation on his/her registered Mobile and email informing about the successful filing of the application and the generated ARN.
• The Application will land in the Commissioner’s queue and he/she will take subsequent actions to process it.  

3. What happens on the GST Portal once a Reply is filed by a Taxpayer?

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

• ARN Status on the GST Portal gets updated to “Reply submitted”.
• All 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 the it from the following navigation: Services > User Services > My Applications > REPLIES.
• Dashboard of all the Tax Official roles is updated with the record of the filed reply.

4. What happens on the GST Portal once the Commissioner grants compounding?

Once the Commissioner grants compounding, following actions take place on the GST Portal:

• Dashboard of Taxpayer and the Tax Officials is updated with the record of the issued Order.
• Taxpayer and the concerned Tax Official will receive an intimation on their registered Mobile and email informing them of the issued Order.
• Status of the ARN shall get updated to “Compounding allowed”.

5. What happens on the GST Portal once the Commissioner rejects compounding?

Once the Commissioner rejects compounding, following actions take place on the GST Portal:

• Dashboard of Taxpayer and the Tax Officials is updated with the record of the issued Order.
• Taxpayer and the concerned Tax Official will receive an intimation on their registered Mobile and email informing them of the issued Order.
• Status of the ARN shall get updated to “Compounding Rejected”

6. Once the Commissioner has allowed compounding, can he/she withdraw it?

Yes. After allowing Compounding, the Commissioner may also withdraw it, as per his/her discretion. In this case the, status of the ARN shall get updated to “Compounding Withdrawn” and henceforth, no action could be performed, by the Taxpayer or the Tax Officials, on the withdrawn ARN.

Note: The Commissioner may, as per his/her discretion, withdraw Compounding at any stage during the processing of the Compounding Application.

7. What are the points I need to know before making payment of the Compounding Fee?

Before you make the payment of the Compounding Fee, you should be aware of the following points:

• You can pay the Compounding Fee only when the Commissioner grants the application request.
• You need to pay the Compounding fee within 30 days of the Order, else the Order shall become void.
• You need to make payment of compounding fee through cash ledger only. ITC can be utilized for payment of tax only. Payment of taxes will be as per the applicable rules.

8. What happens on the GST Portal once the Compounding Fee is paid?

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

• Status of the ARN shall 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 shall be initiated.

9. When can I submit a Rectification request?

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

Additionally, note that:

• 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.
• If the rectification is purely in the nature of correction of a clerical or arithmetical error, the limitation of six months shall not apply. Thus, in this case (when the difference between the date of the Order and rectification application filed is more than 6 months), the following 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”. You can click the PROCEED button to move forward with filing the application.

10. What happens on the GST Portal once a Rectification request is submitted by a Taxpayer?

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

• Dashboard of Taxpayer and the 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”.

Now, the Commissioner may either accept the request or reject the Rectification request. 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.

11. What happens on the GST Portal once the Commissioner accepts the Rectification request submitted by the Taxpayer?

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

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

12. What happens on the GST Portal once the Commissioner rejects the Rectification request submitted by the Taxpayer?

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

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

Manual >

Filing Application for Compounding of Offence (Form GST CPD-01) and Taking Actions in the Subsequent Proceedings

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

To file Application for Compounding of Offence (Form GST CPD-01) and take subsequent actions, perform following steps:

1. File an Application for Compounding of Offence (Form GST CPD-01)
2. Open the Application’s Case Details screen by searching for your filed Application in “My Applications” screen
3. Take action using APPLICATIONS tab of Case Details screen: View your Filed Application
4. Take action using NOTICES tab of Case Details screen:

D(1). View issued Notices

D(2). File Reply to the issued Notices

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

E(1) View Filed Replies

E(2) File Counter-replies

1. 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

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

To file an Application for Compounding of Offence (Form GST CPD-01), perform following steps:

Note:

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

• Prosecution is instituted: This means that an Order for initiation of prosecution has been issued against the Taxpayer. He/she would have received a Prosecution Notice, issued by a Tax Official, regarding the same.

• Prosecution is contemplated: This means that the taxpayer is voluntarily filing this application for Compounding of Offence. In this case, he/she might have received an Order, issued by a Tax Official.

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

2. Login to the portal with valid credentials.

3. Dashboard page is displayed. Click Dashboard > Services > User Services > My Applications