The proceeds of the Consumer Welfare Fund constituted under Goods and Services Tax (GST) could be given as grant to central and state governments as well as regulatory authorities, the Central Board of Indirect Taxes and Customs (CBIC) said on Wednesday. Up to 50 per cent of the amount credited to the Fund each year could also be used for publicity/ consumer awareness on GST, provided the availability of funds for consumer welfare activities of the Department of Consumer Affairs is not less than Rs 25 crore per annum, it said.
In a notification, the CBIC said that the Government shall constitute a Standing Committee with a Chairman, a Vice-Chairman, a Member Secretary and such other members for managing the fund and making recommendations pertaining to usage of its proceeds.
The Central GST Act provides for creation of a Consumer Welfare Fund wherein undue benefits made by businesses under the GST law have to be deposited, in case it cannot be passed on the identified recipient.
