The following offences may not be compounded:
(a) A person who has been allowed to compound earlier in respect of any offences described as follows:
(i) Making a supply without issue of any invoice or grossly mis-declares the
description of the supply on invoice, in contravention of this Act, to intentionally evade tax
(ii) Issues any invoice or bill without supply in violation of the provisions of this
Act/rules made thereunder leading to wrongful availment or utilization of input tax credit or refund of tax
(iii) Collects any amount as tax but fails to pay the same to the credit of the
appropriate Government beyond a period of 3 months from the date on
which such payment becomes due
(iv) Collects any tax in contravention of the provisions of this Act but fails to
pay the same to the credit of the appropriate government from the date on
which such payment becomes due
(v) Availing/utilizing input tax credit without actual receipt of goods and/or
services either fully or partially in violation of the provisions of this Act or
the rules made thereunder
(vi) Fraudulently avails input tax credit or evades tax or obtains refund
(vii) Falsification or substitution of financial records or producing fake accounts, documents or furnishes any false information with an intention to evade payment of tax
(viii) Attempts to commit or abets the commission of any of the offences
mentioned above
(b) A person who has been allowed to compound earlier in respect of any offences described as above in clause (A) under this Act or under any provisions of any other SGST Act or IGST Act in relation to supplies of value exceeding one crore rupees
(c) Any offence which is also an offence under any other law for time being in force
(d) A person who has been convicted for an offence under this act by a court
(e) A person who has been accused of committing an offence as under:
(i) Obstruct or prevents any officer in the discharge of his duties
(ii) Tampers with or destroys any material evidence or documents
(iii) Fails to supply any information which he is required to supply under this
Act or the rules made thereunder or (unless with a reasonable belief, the
burden of proving which shall be upon him, that the information supplied by
him is true) supplies false information.
(ICAI FAQ PUBLICATIONS 06-09-2017 COMPOUNDING OF OFFENCES: FAQ NO. 43)