Section 57 of CGST Act, 2017 : Section 57: Consumer Welfare Fund

Explanation using Example

Imagine a situation where a company has been unable to refund excess Goods and Services Tax (GST) to its consumers due to unavailability of their details. According to sub-section (5) of section 54, this unclaimed GST amount is then transferred to the Consumer Welfare Fund. Let's say the company had an excess of ₹1,00,000 in GST collections that couldn't be refunded. This amount would be credited to the Consumer Welfare Fund as per clause (a).

Further, if the government invests this ₹1,00,000 in a fixed deposit and earns an interest of ₹7,000, this interest income would also be credited to the Fund as per clause (b).

Additionally, the Fund may receive donations from a philanthropist specifically for consumer welfare. This donation would be included in the Fund as per clause (c).