Section 138: Compounding of offences

Q: What does Section 138 of The State Goods and Services Tax Act, 2017 (Model) (SGST) deal with?

Section 138 SGST pertains to "Compounding of offences". It is part of the The State Goods and Services Tax Act, 2017 (Model), a legislation enacted by the Parliament of India. Section 138 of The State Goods and Services Tax Act, 2017 (Model) (SGST) governs compounding of offences. As verified on 19 May 2026.

Q: Is Section 138 SGST still in force?

Yes, Section 138 of the The State Goods and Services Tax Act, 2017 (Model) is currently in force across the Republic of India.

Q: What is धारा 138 SGST?

धारा 138 SGST is the Devanagari Hindi reference for Section 138 of the The State Goods and Services Tax Act, 2017 (Model). Section 138 of The State Goods and Services Tax Act, 2017 (Model) (SGST) governs compounding of offences. As verified on 19 May 2026.

Q: What is Dhara 138 SGST?

Dhara 138 SGST is the Roman Hindi reference for Section 138 of the The State Goods and Services Tax Act, 2017 (Model). "Dhara" means "Section" in Hindi. Section 138 of The State Goods and Services Tax Act, 2017 (Model) (SGST) governs compounding of offences. As verified on 19 May 2026.

Q: How to cite Section 138 of The State Goods and Services Tax Act, 2017 (Model)?

Cite as: "Section 138, The State Goods and Services Tax Act, 2017 (Model) (SGST)" in legal briefs. For academic writing, use the BlueBook format: The State Goods and Services Tax Act, 2017 (Model), § 138 (India).

Law on Tips Editorial Board

(1)

Any offence under this Act may, either before or after the institution of prosecution, be compounded by the Commissioner on payment, by the person accused of the offence, to the Central Government or the State Government, as the case may be, of such compounding amount in such manner as may be prescribed:

Provided that nothing contained in this section shall apply to -

(a) a person who has been allowed to compound once in respect of any of the offences specified in clauses (a) to (f) of sub-section (1) of section 132 and the offences specified in clause (l) which are relatable to offences specified in clauses (a) to (f) of the said subsection;

(b) a person who has been allowed to compound once in respect of any offence, other than those in clause (a), under this Act or under the provisions of any State Goods and Services Tax Act or the Central Goods and Services Tax Act or the Union Territory Goods and Services Tax Act or the Integrated Goods and Services Tax Act in respect of supplies of value exceeding one crore rupees;

(c) a person who has been accused of committing an offence under this Act which is also an offence under any other law for the 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 specified in clause (g) or clause (j) or clause (k) of sub-section (1) of section 132; and

(f) any other class of persons or offences as may be prescribed:

(2)

The amount for compounding of offences under this section shall be such as may be prescribed, subject to the minimum amount not being less than 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.

(3)

On payment of such compounding amount as may be determined by the Commissioner, no further proceedings shall be initiated under this Act against the accused person in respect of the same offence and any criminal proceedings, if already initiated in respect of the said offence, shall stand abated.