Consumer welfare Fund [section 57 read with rule 97 of CGST Rule] - GST Ready Reckoner - GST

Consumer Welfare Fund As per section 57 of CGST Act The Government shall constitute a Fund, to be called the Consumer Welfare Fund and there shall be credited to the Fund,- (a) the amount referred to in section 54(5); (b) any income from investment of the amount credited to the Fund; and (c) such other monies received by it, in such manner as may be prescribed. Consumer Welfare Fund All amounts of duty/central tax/ integrated tax /Union territory tax/cess and income from investment along with other monies specified in sub-section (2) of section 12C of the Central Excise Act, 1944 , section 57 of the Central Goods and Services Tax Act, 2017 read with section 20 of the Integrated Goods and Services Tax Act, 2017 , section 21 of the Union Territory Goods and Services Tax Act, 2017 and section 12 of the Goods and Services Tax (Compensation to States) Act, 2017 shall be credited to the Fund: An amount equivalent to 50% of the amount of integrated tax determined under section 54(5) of the CGST Act, 2017 , read with section 20 of the Integrated Goods and Services Tax Act, 2017 , shall be deposited in the Fund. An amount equivalent to 50% of the amount of cess determined u/s 54(5) read with section 11 of the Goods and Services Tax (Compensation to States) Act, 2017, shall be deposited in the Fund. Where any amount, having been credited to the Fund, is ordered or directed to be paid to any claimant by the proper officer, appellate authority or court, the same shall be paid from the Fund. Accounts of the Fund maintained by the Central Government shall be subject to audit by the Comptroller and Auditor General of India. The Government shall, by an order, constitute a Standing Committee (hereinafter referred to as the Committee ) with a Chairman, a Vice-Chairman, a Member Secretary and such other members as it may deem fit and the Committee shall make recommendations for proper utilisation of the money credited to the Fund for welfare of the consumers. The Committee shall meet as and when necessary, generally four times in a year; The meeting of the Committee shall be called, after giving at least ten days notice in writing to every member; The notice of the meeting of the Committee shall specify the place, date and hour of the meeting and shall contain statement of business to be transacted thereat; No proceeding of the Committee shall be valid, unless it is presided over by the Chairman or Vice-Chairman and attended by a minimum of three other members. The Committee shall have powers - (a) to require any applicant to get registered with any authority as the Central Government may specify; (b) to require any applicant to produce before it, or before a duly authorised officer of the Central Government or the State Government, as the case may be, such books, accounts, documents, instruments, or commodities in custody and control of the applicant, as may be necessary for proper evaluation of the application; (c) to require any applicant to allow entry and inspection of any premises, from which activities claimed to be for the welfare of consumers are stated to be carried on, to a duly authorised officer of the Central Government or the State Government, as the case may be; (d) to get the accounts of the applicants audited, for ensuring proper utilisation of the grant; (e) to require any applicant, in case of any default, or suppression of material information on his part, to refund in lump-sum along with accrued interest, the sanctioned grant to the Committee, and to be subject to prosecution under the Act; (f) to recover any sum due from any applicant in accordance with the provisions of the Act; (g) to require any applicant, or class of applicants to submit a periodical report, indicating proper utilisation of the grant; (h) to reject an application placed before it on account of factual inconsistency, or inaccuracy in material particulars; (i) to recommend minimum financial assistance, by way of grant to an applicant, having regard to his financial status, and importance and utility of the nature of activity under pursuit, after ensuring that the financial assistance provided shall not be misutilised; (j) to identify beneficial and safe sectors, where investments out of Fund may be made, and make recommendations, accordingly; (k) to relax the conditions required for the period of engagement in consumer welfare activities of an applicant; (l) to make guidelines for the management, and administration of the Fund. The Committee shall not consider an application, unless it has been inquired into, in material details and recommended for consideration accordingly, by the Member Secretary. The Committee shall make available to the Board 50% of the amount credited to the Fund each year, for publicity or consumer awareness on Goods and Services Tax, provided the availability of funds for consumer welfare activities of the Department of Consumer Affairs is not less than 25 crore per annum. The Committee shall make recommendations:- for making available grants to any applicant; for investment of the money available in the Fund; for making available grants (on selective basis) for reimbursing legal expenses incurred by a complainant, or class of complainants in a consumer dispute, after its final adjudication; for making available grants for any other purpose recommended by the Central Consumer Protection Council. Note : No refund shall be granted or paid to an applicant or the consumer welfare fund, whether it is final refund or provisional refund(provisional refund is granted in cases of refund of unutilized ITC against zero rated supplies) if the amount is less than rupees one thousand. As per Para 60 of Circular 125/44/2019-GST dated 18.11.2019, limit of rupees one thousand shall be applied for each tax head separately and not cumulatively.