Section 57 sets up the Consumer Welfare Fund. Tax that has been found refundable but was passed on to customers does not go back to the supplier; it goes to this Fund, to be used for consumers generally.
Key points
- Under section 57 of the CGST Act, 2017 the Government constitutes a Consumer Welfare Fund, to which are credited refunds ordered under section 54(5) that are not payable to the applicant, income from investing the Fund, and other monies received.
- Amounts that profiteering suppliers are ordered to deposit, where the recipients cannot be identified, are also credited to it (section 171 and Rule 133).
The provisions
57Consumer Welfare Fund
Statutory text
The Government shall constitute a Fund, to be called the Consumer Welfare Fund and there shall be credited to the Fund,-
(a) the amount referred to in sub-section (5) of section 54;
(b) any income from investment of the amount credited to the Fund; and
(c) such other monies received by it,
in such manner as may be prescribed.
*Enforced w.e.f. 1st July, 2017.
- Rule 97, CGST Rules
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- What is the GST Consumer Welfare Fund?
- A fund under section 57 of the CGST Act into which refunds that cannot be paid to the claimant — because the tax was passed on to customers — are credited, to be used for the welfare of consumers.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The Fund is the destination for the unjust-enrichment rule in section 54(5): an amount found refundable is credited here unless it falls within section 54(8). The manner of crediting is in Rule 97; its use is governed by section 58.