The Centre and the ‘concerned state’ will equally share the amount deposited by erring businesses in the consumer welfare fund set up as part of the GST anti-profiteering rules, as per a Finance Ministry notification.
The Government set up a national anti-profiteering authority to penalise businesses for failure to pass on tax benefits to consumers. In case the customer is not identifiable, the penal amount has to be deposited in the consumer welfare fund.
The Finance Ministry has amended the Central GST rules stating that 50 per cent of the penal amount is to be deposited in the consumer welfare fund constituted by the Centre and the remaining to the fund set up by the ‘concerned state’.
The ‘concerned state’ would mean the state where the anti-profiteering authority has passed its order against the business.