 "gst, goods and services tax")
As much as Rs 1.70 billion has been deposited into the consumer welfare fund by several entities for not passing on the benefits of GST rate reduction to consumers, Kerala Finance Minister Thomas Isaac said Friday.
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 to the identified recipient.
"Action has started (on profiteering complaints)... Rs 1.70 billion has been paid in the Consumer Welfare Fund by the companies and many cases are being investigated," Isaac told reporters here.
The government has a national anti-profiteering authority to penalise businesses for failure to pass on GST benefits to consumers. In case the consumer is not identifiable, the money has to be deposited in the consumer welfare fund.
As per the GST anti-profiteering rules, the Centre and the 'concerned state' has been empowered to equally share the amount deposited by erring businesses in the consumer welfare fund.
'Concerned state' would mean the state where the anti-profiteering authority has passed its order against the businesses.
The proceeds from the consumer welfare fund, constituted under Goods and Services Tax (GST), can be given as grant to the Centre and state governments as well as regulatory authorities.
