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

Under Rule 97(7A), 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, provided a specified condition is met. If Rs 60 crore is credited in a year and the condition is satisfied, what is the amount and what is the condition?

Rs 30 crore can be made available to the Board, being fifty per cent of Rs 60 crore. This is allowed only if funds available for consumer welfare activities of the Department of Consumer Affairs are not less than Rs 25 crore per annum.

  1. ARs 30 crore; funds for Department of Consumer Affairs consumer welfare activities not less than Rs 25 crore per annumCorrect
  2. BRs 15 crore; funds for Department of Consumer Affairs not less than Rs 50 crore per annum
  3. CRs 30 crore; funds for Department of Consumer Affairs not less than Rs 10 crore per annum
  4. DRs 60 crore; no condition applies

Explanation

Rule 97(7A) allows 50% of the amount credited each year, so 50% of Rs 60 crore is Rs 30 crore. The proviso requires that availability of funds for consumer welfare activities of the Department of Consumer Affairs is not less than Rs 25 crore per annum. The other options misstate the share or the threshold.

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