This instruction lays down comprehensive guidelines for initiation, sanction, and conduct of prosecution under Section 132 of the CGST Act, 2017. It emphasises that prosecution is a serious action and should be launched only where there is adequate evidence to meet the higher standard of proof required in criminal proceedings, and not merely because a tax demand has been confirmed. Monetary threshold for prosecution is generally set at ₹5 crore, with exceptions for habitual offenders and arrest cases. Detailed procedures are prescribed for sanction of prosecution, timelines for filing complaints, and roles of CGST and DGGI officers. The instruction clarifies the relationship between adjudication and prosecution, including circumstances where prosecution may precede adjudication, guided by Supreme Court jurisprudence. It also provides for monitoring of prosecution cases, withdrawal of prosecution in appropriate cases, compounding of offences, and mandatory updating of prosecution data on the DIGIT platform to ensure effective oversight.