Compounding of offences allows the Commissioner to accept payment to terminate GST proceedings subject to exclusions and conditions.

Section 138 authorises the Commissioner to compound GST offences on payment by the accused to the government, subject to prescribed manner and specified exclusions (including prior compounding, high value supplies, concurrent offences under other laws, convictions, and certain specified offences). Compounding requires prior payment of tax, interest and penalty. The compounding amount is prescribed within statutory minimum and maximum bounds related to the tax involved. Payment of the determined compounding amount prevents further proceedings under the Act and abates any criminal proceedings for the same offence.

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