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CMA Final · Indirect Tax Laws and Practice · Dispute Resolution Mechanism under GST

The Standing Committee of the Consumer Welfare Fund receives ₹40 crore in a year. Under Rule 97(7A), what is the condition and the amount the Committee makes available to the Board for GST publicity or consumer awareness?

The Committee makes ₹20 crore available to the Board, being fifty per cent of the ₹40 crore credited. This is allowed only if funds available for consumer welfare activities of the Department of Consumer Affairs are not less than ₹25 crore per annum.

  1. A₹20 crore, provided funds for consumer welfare activities of the Department of Consumer Affairs are not less than ₹25 crore per annumCorrect
  2. B₹20 crore, with no condition attached
  3. C₹10 crore, provided Department of Consumer Affairs funds are not less than ₹25 crore per annum
  4. D₹20 crore, provided Department of Consumer Affairs funds are not more than ₹25 crore per annum

Explanation

Rule 97(7A) lets the Committee make available to the Board 50% of the amount credited to the Fund each year, so 50% of ₹40 crore is ₹20 crore. This is subject to the proviso that the availability of funds for consumer welfare activities of the Department of Consumer Affairs is not less than ₹25 crore per annum. The 'not more than' wording reverses the condition.

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