Rule 97 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 97 of the Central Goods and Services Tax Rules, 2017 deals with the Consumer Welfare Fund of section 57. It lists what is credited to the Fund, how payments are made out of it, the Standing Committee that recommends its use, how the Committee meets and what powers it has, who may apply for a grant, and that the accounts are audited by the Comptroller and Auditor General of India.
This article follows the CGST Rules, 2017 as amended up to 31 October 2025 in the compilation consulted; notifications issued after that date should be checked.
The Fund receives the amounts rule 97(1) lists, including fifty per cent. of the amount of integrated tax determined under section 54(5) and fifty per cent. of the amount of cess so determined. The Government constitutes a Standing Committee that recommends the use of the money for the welfare of consumers. Governments, regulators, consumer-welfare organisations, certain educational or research institutions and complainants are "applicants". The Fund's accounts are audited by the Comptroller and Auditor General of India.
The sections behind the rule
Rule 97 serves sections 57 and 58 of the CGST Act, 2017. Section 57 constitutes the Consumer Welfare Fund and says what is credited to it; section 58 provides that the sums are utilised by the Government for the welfare of the consumers in the manner prescribed, with proper and separate accounts. See the Consumer Welfare Fund: sections 57 and 58. The amount that reaches the Fund under section 54(5) is explained in sections 54 to 58: refund and in rule 92. Rule 97 is part of the same refund Chapter as rule 89; if your refund was ordered to the Fund rather than to you, our GST refund service can review the order.
The rule is printed as a substituted rule (the footnote records Notification No. 21/2018-Central Tax dated 18.04.2018). The old rule is quoted in a long footnote; that wording is not law and is not used here.
Rule 97(1): what is credited
"All amounts of duty/central tax / integrated tax / Union territory tax / cess and income from investment along with other monies specified in sub-section (2) of section 12C of the Central Excise Act, 1944, section 57 of the Central Goods and Services Tax Act, 2017 read with section 20 of the Integrated Goods and Services Tax Act, 2017, section 21 of the Union Territory Goods and Services Tax Act, 2017 and section 12 of the Goods and Services Tax (Compensation to States) Act, 2017 shall be credited to the Fund."
- First proviso: an amount equivalent to fifty per cent. of the amount of integrated tax determined under section 54(5) of the CGST Act, read with section 20 of the IGST Act, shall be deposited in the Fund.
- Second proviso: an amount equivalent to fifty per cent. of the amount of cess determined under section 54(5) read with section 11 of the Goods and Services Tax (Compensation to States) Act, 2017 shall be deposited in the Fund. The footnote records that this proviso was inserted by Notification No. 26/2018-Central Tax dated 13.06.2018.
The rule names the Central Excise Act, 1944 and the Customs Act, 1962 (in the definition of "duty"). Check the current law for the corresponding provisions.
Rule 97(2) and (3): payment out of the Fund, and audit
- (2) Where any amount, having been credited to the Fund, is ordered or directed to be paid to any claimant by the proper officer, appellate authority or court, it shall be paid from the Fund.
- (3) The accounts of the Fund maintained by the Central Government shall be subject to audit by the Comptroller and Auditor General of India.
Rule 97(4): the Standing Committee
The Government shall, by an order, constitute a Standing Committee (the "Committee") with a Chairman, a Vice-Chairman, a Member Secretary and such other members as it may deem fit, and the Committee shall make recommendations for proper utilisation of the money credited to the Fund for the welfare of consumers.
Rule 97(5): meetings
| Clause | Provision |
|---|---|
| (a) | The Committee meets as and when necessary, generally four times in a year |
| (b) | It meets at such time and place as the Chairman, or in his absence the Vice-Chairman, may deem fit |
| (c) | The meeting is presided over by the Chairman, or in his absence by the Vice-Chairman |
| (d) | The meeting is called after giving at least ten days' notice in writing to every member |
| (e) | The notice specifies the place, date and hour and contains a statement of business |
| (f) | No proceeding is valid unless presided over by the Chairman or Vice-Chairman and attended by a minimum of three other members |
Rule 97(6): the Committee's powers
The Committee has power:
- (a) to require any applicant to get registered with any authority as the Central Government may specify;
- (b) to require any applicant to produce books, accounts, documents, instruments or commodities in his custody and control before it or a duly authorised officer, as necessary for proper evaluation of the application;
- (c) to require any applicant to allow entry and inspection of any premises from which activities claimed to be for the welfare of consumers are carried on;
- (d) to get the accounts of the applicants audited, for ensuring proper utilisation of the grant;
- (e) to require any applicant, in case of any default or suppression of material information, to refund in lump-sum along with accrued interest the sanctioned grant, and to be subject to prosecution under the Act;
- (f) to recover any sum due from any applicant in accordance with the provisions of the Act;
- (g) to require any applicant or class of applicants to submit a periodical report indicating proper utilisation of the grant;
- (h) to reject an application on account of factual inconsistency or inaccuracy in material particulars;
- (i) to recommend minimum financial assistance, by way of grant, having regard to the applicant's financial status and the importance and utility of the activity, after ensuring the assistance is not misutilised;
- (j) to identify beneficial and safe sectors where investments out of the Fund may be made, and make recommendations;
- (k) to relax the conditions required for the period of engagement in consumer welfare activities of an applicant; and
- (l) to make guidelines for the management and administration of the Fund.
Rule 97(7), (7A) and (8)
- (7) The Committee shall not consider an application unless it has been inquired into, in material details, and recommended for consideration by the Member Secretary.
- (7A) The Committee shall make available to the Board fifty per cent. of the amount credited to the Fund each year, for publicity or consumer awareness on Goods and Services Tax, provided the availability of funds for consumer welfare activities of the Department of Consumer Affairs is not less than twenty-five crore rupees per annum. The footnote records that (7A) was inserted by Notification No. 49/2019-Central Tax dated 09.10.2019, with effect from 01.07.2017.
- (8) The Committee shall make recommendations: (a) for making available grants to any applicant; (b) for investment of the money available in the Fund; (c) for making available grants, on a selective basis, for reimbursing legal expenses incurred by a complainant or class of complainants in a consumer dispute, after its final adjudication; (d) for grants for any other purpose recommended by the Central Consumer Protection Council, as may be considered appropriate by the Committee. Clause (e) is shown as omitted.
The Explanation: who is an "applicant"
The Explanation defines "applicant" as: (i) the Central Government or State Government; (ii) regulatory authorities or autonomous bodies constituted under an Act of Parliament or the Legislature of a State or Union Territory; (iii) any agency or organisation engaged in consumer welfare activities for a minimum period of three years, registered under the Companies Act, 2013 or any other law; (iv) village or mandal or samiti level co-operatives of consumers, especially Women, Scheduled Castes and Scheduled Tribes; (v) an educational or research institution incorporated by an Act of Parliament or the Legislature of a State or Union Territory, or other educational institutions established by an Act of Parliament or declared to be deemed as a University under section 3 of the University Grants Commission Act, 1956, which has consumer studies as part of its curriculum for a minimum period of three years; and (vi) a complainant as defined in clause (b) of section 2(1) of the Consumer Protection Act, 1986 who applies for reimbursement of legal expenses in a case instituted by him in a consumer dispute redressal agency.
It also defines "application" as an application in the form specified by the Standing Committee from time to time, "Fund" as the Consumer Welfare Fund established by the Central Government under section 12C(1) of the Central Excise Act, 1944 and section 57 of the CGST Act, "consumer" (including a consumer of goods on which central tax has been paid), "duty", "proper officer", "Act" and "Central Consumer Protection Council". The rule refers to the Companies Act, 2013, the University Grants Commission Act, 1956, the Consumer Protection Act, 1986 and the Customs Act, 1962; check the current law for the corresponding provisions.
Who does what, by when
| Who | What | When |
|---|---|---|
| Government | Constitutes the Standing Committee by order | Rule 97(4): no period printed |
| Central Government | Deposits fifty per cent. of integrated tax and of cess determined under section 54(5) | Rule 97(1) provisos |
| Standing Committee | Meets, generally four times in a year, with at least ten days' notice in writing | Rule 97(5) |
| Member Secretary | Inquires into and recommends each application | Before the Committee considers it (rule 97(7)) |
| Comptroller and Auditor General of India | Audits the Fund's accounts | Rule 97(3): no period printed |
A worked example
Orion Cooperative Society, an invented village-level consumer co-operative formed by women members, wishes to apply for a grant. It is an "applicant" under clause (b)(iv) of the Explanation. Its application is in the form specified by the Standing Committee. The Member Secretary inquires into it in material detail and recommends it for consideration, as sub-rule (7) requires. The Committee, at a meeting called on at least ten days' written notice and attended by the Chairman and three other members, recommends a grant. If Orion later suppresses material information, rule 97(6)(e) lets the Committee require it to refund the grant in lump-sum along with accrued interest, and Orion would be subject to prosecution under the Act. No amounts appear in this example because the rule fixes none for an individual grant.
Points to watch
- Fifty per cent. split. The provisos to sub-rule (1) apply to integrated tax and to cess determined under section 54(5).
- Sub-rule (7A). The fifty per cent. for publicity is subject to the twenty-five crore rupee proviso.
- The Member Secretary's recommendation is a precondition for consideration.
- Other laws. The rule names several; check each one's current form.
Need help with a refund that was ordered to the Fund?
When a refund is not payable to the applicant under section 54(8), it goes to the Fund instead. We read the order, check the basis and advise on the next step. See our GST refund service.
Key takeaways
- Rule 97(1) lists the credits to the Fund and, by two provisos, fifty per cent. of integrated tax and of cess determined under section 54(5).
- A Standing Committee, constituted by order, recommends utilisation; rule 97(5) and (6) fix its meetings and powers.
- Applicants are listed in the Explanation; the Member Secretary must recommend each application.
- The Fund's accounts are subject to audit by the Comptroller and Auditor General of India.
- Rule 97(7A) makes fifty per cent. of the yearly credit available to the Board for publicity, subject to its proviso.
Read next
- Rules 96C and 97A of the CGST Rules, 2017: bank account for credit of refund and manual filing
- Rules 93 and 94 of the CGST Rules, 2017: rejected refund and interest on delayed refunds
- The Consumer Welfare Fund: sections 57 and 58
- Rule 98 of the CGST Rules, 2017: provisional assessment
Disclaimer: Based on the Central Goods and Services Tax Rules, 2017 and the GST Acts as amended up to 31 October 2025 in the compilation consulted, read with the Finance Act, 2026 where this article says so, as consulted on 2 October 2026. Notifications, circulars and amendments issued after that date, the forms on the common portal and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.