Section 131 makes clear that departmental confiscation or penalty and criminal punishment can go together.
Key points
- Under section 131 of the CGST Act, 2017, without prejudice to the Code of Criminal Procedure, no confiscation or penalty under the Act prevents any other punishment to which the person is liable under the Act or any other law.
The provisions
131Confiscation or penalty not to interfere with other punishments
Statutory text
Without prejudice to the provisions contained in the Code of Criminal Procedure, 1973, (2 of 1974.) no confiscation made or penalty imposed under the provisions of this Act or the rules made thereunder shall prevent the infliction of any other punishment to which the person affected thereby is liable under the provisions of this Act or under any other law for the time being in force.
* Enforced w.e.f . 1st July, 2017.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- Can a person be prosecuted after paying a GST penalty?
- Yes. Section 131 of the CGST Act preserves other punishments; prosecution needs the Commissioner's sanction under section 132(6), and compounding is available under section 138.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
Departmental adjudication and prosecution under section 132 are independent; the outcome of one is relevant to, but does not automatically decide, the other.