Section 58 governs how the Consumer Welfare Fund is spent and accounted for: only for consumer welfare, with separate accounts audited on a basis settled with the Comptroller and Auditor-General.
Key points
- Under section 58(1) of the CGST Act, 2017 sums in the Consumer Welfare Fund are to be used by the Government for the welfare of consumers in the prescribed manner (Rule 97).
- Separate accounts and an annual statement of accounts are maintained in a form prescribed in consultation with the Comptroller and Auditor-General of India (section 58(2)).
The provisions
58(1)–(2)Utilisation of Fund
Statutory text
(1) All sums credited to the Fund shall be utilised by the Government for the welfare of the consumers in such manner as may be prescribed.
(2) The Government or the authority specified by it shall maintain proper and separate account and other relevant records in relation to the Fund and prepare an annual statement of accounts in such form as may be prescribed in consultation with the Comptroller and Auditor-General of India.
*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
- How is the GST Consumer Welfare Fund used?
- Only for the welfare of consumers, through grants sanctioned under Rule 97, with separate accounts kept under section 58 of the CGST Act.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
Rule 97 provides for a Standing Committee that sanctions grants from the Fund to consumer bodies, research and awareness programmes and similar purposes, and for the accounts. The Fund mirrors the Consumer Welfare Fund under the Central Excise Act, 1944.