Utilization of Consumer Welfare Fund under GST Act 2017
The Consumer Welfare Fund (CWF) was established under Section 57 of the Central Goods and Services Tax (CGST) Act, 2017. This fund collects a portion of the GST revenue to be used for the welfare of consumers.
Here’s how the fund is utilized:
- Purpose:
- As per Section 58 of the CGST Act, the government must utilize the fund for “the welfare of the consumers in such manner as may be prescribed.”
- Prescribed Manner:
- The CGST Rules, 2017prescribe the manner of utilizing the CWF through Rule 97.
- Utilization Channels:
- 50% of the fund: Made available to the Central Board of Indirect Taxes and Customs (CBIC)under Rule 97(7A) for activities related to:
- Promoting and protecting GST consumer welfare and empowerment.
- Incentivizing consumers to exercise their rights and responsibilities under GST.
- Funding innovative projects for spreading consumer literacy and awareness about GST.
- Remaining 50%: Utilized by the Central Government and State Governments in accordance with Rule 97:
- Consumer welfare activities as recommended by the Consumer Protection Council.
- Setting up Consumer Help Desks.
- Spreading awareness about consumer rights under GST.
- Research and studies on consumer protection in the GST regime.
- Accountability:
- The government or the specified authority maintains separate accounts and records for the fund.
- An annual statement of accounts is prepared and submitted to the Comptroller and Auditor-General of India.
EXAMPLE
Unfortunately, I cannot provide a specific example of fund utilization under the GST Act, 2017, for a particular state in India without more information. This is because the utilization of funds collected under GST varies depending on several factors, including:
- The specific state: Each state has its own budget and priorities, leading to different allocations of GST funds.
- The type of fund: There are different GST funds with distinct purposes, such as the Consolidated Fund of India (CFI), State GST Fund (SGSTF), Integrated GST Fund (IGSTF), and Compensation Fund.
- The time period: The allocation and utilization of funds change over time based on evolving needs and priorities.
However, I can provide you with some general information and resources to help you find the specific example you’re looking for:
General Information:
- Fund Distribution: The collected GST revenue is distributed between the Center and the States in a specific ratio. The Center retains a share for centrally sponsored schemes and national priorities, while the remaining amount is transferred to the states.
- State Utilization: Each state utilizes its share of GST funds for various purposes, including:
- Infrastructure development: Building roads, bridges, and other public infrastructure.
- Social welfare schemes: Supporting programs for education, healthcare, and poverty alleviation.
- Public services: Funding essential services like police, fire, and sanitation.
- Debt repayment: Servicing existing debt obligations.
Resources:
- Central Board of Indirect Taxes and Customs (CBIC):Website of your specific state’s finance department: Look for information on budget documents, expenditure reports, or specific schemes funded by GST.
- News articles and reports: Search for news articles or reports mentioning the utilization of GST funds in your state of interest.
Recommendation:
To find a specific example of fund utilization under the GST Act, 2017, for a particular state in India, I recommend searching online using the resources mentioned above. You can also try contacting the finance department of your specific state for more detailed information.
FAQ QUESTIONS
- Specify the type of fund:
- Are you interested in the Consolidated Fund of India (CFI)?
- Or the State Goods and Services Tax (SGST) Fund?
- Perhaps the Integrated Goods and Services Tax (IGST) Fund?
- Or maybe a specific cess fund like the Compensation Cess Fund?
- Focus on a particular aspect of utilization:
- Are you curious about the purposes for which these funds can be used?
- Or how the funds are allocated and distributed?
- Maybe you’re interested in the monitoring and reporting requirements?
- Mention any specific concerns or questions you have:
- Are there any specific sections of the GST Act you’d like clarification on?
- Perhaps you’ve encountered a particular situation and need guidance on fund utilization?
Once you provide some additional details, I can offer you a more relevant and targeted response by pointing you towards specific FAQs or explaining relevant provisions of the GST Act.
CASE LAWS
Unfortunately, there aren’t any specific case laws directly related to the utilization of funds under the Consumer Welfare Fund (CWF) established by the GST Act, 2017. This is because the CWF is a relatively new mechanism, and legal disputes haven’t had enough time to arise and reach the courts.
However, there are resources and information available that can help you understand the utilization of the CWF under the GST Act:
Relevant Provisions:
- Section 57 of the CGST Act, 2017:This section establishes the CWF and states its purpose for the welfare of consumers.
- Rule 97 of the CGST Rules, 2017:This rule prescribes the manner in which the CWF is to be utilized, including the process for project proposals, fund disbursement, and unutilized funds.
Additional Resources:
- Consumer Welfare Fund made available to Board under Rule 97(7A) of the CGST Rules, 2017 (Management & Administration):This document from the Central Board of Indirect Taxes and Customs (CBIC) provides guidelines for the utilization of the CWF.
- CGST Rules, 2017:The complete set of rules governing the implementation of the GST Act, including Rule 97 on the CWF.
While there aren’t any specific case laws on the utilization of CWF funds, these resources can provide you with a comprehensive understanding of the relevant legal framework and how the fund is intended to be used.