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

Under Rule 97(7A) of the CGST Rules, 2017, the Committee makes available to the Board 50 per cent of the amount credited to the Fund each year for GST publicity or consumer awareness. Suppose Rs 80 crore is credited in a year and the Department of Consumer Affairs' availability for consumer welfare activities is Rs 30 crore per annum. What amount is made available to the Board?

Rs 40 crore is made available. Rule 97(7A) gives the Board 50 per cent of the amount credited each year, provided the Department of Consumer Affairs has at least Rs 25 crore per annum. With Rs 30 crore available the condition is met, so 50% of Rs 80 crore applies.

  1. ARs 40 croreCorrect
  2. BRs 30 crore
  3. CRs 55 crore
  4. DNil, because the Department's funds exceed Rs 25 crore

Explanation

The condition is that the Department's availability is not less than Rs 25 crore per annum. Rs 30 crore satisfies it, so 50% of Rs 80 crore = Rs 40 crore is made available. The nil option reverses the condition, as a lower figure, not a higher one, would defeat it.

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