Let us look at chapter 19 of CGST rules – Offences and Penalties. This text is taken from http://www.cbec.gov.in/resources//htdocs-cbec/gst/cgst-rules-01july2017%20.pdf
Procedure for Compounding of Offences
(1) An applicant may, either before or after the institution of prosecution, make an application under sub-section (1) of section 138 in FORM GST CPD-01 to the Commissioner for compounding of an offence.
from the concerned officer with reference to the particulars furnished in the application, or any other information, which may be considered relevant for the examination of such application.
application, may, by order in FORM GST CPD-02, on being satisfied that the applicant has co-operated in the proceedings before him and has made full and true disclosure of facts relating to the case, allow the application indicating the compounding amount and grant him
immunity from prosecution or reject such application within ninety days of the receipt of the application.
affording an opportunity of being heard to the applicant and recording the grounds of such rejection.
penalty liable to be paid have been paid in the case for which the application has been made.
the receipt of the order under sub-rule (3), pay the compounding amount as ordered by the Commissioner and shall furnish the proof of such payment to him.
time specified in sub-rule (6), the order made under sub-rule (3) shall be
vitiated and be void.
the course of the compounding proceedings, concealed any material particulars or had given false evidence. Thereupon such person may be tried for the offence with respect to which