Answer

1. F

   Facts

   Interest under Sec 50(1) is 18 percent a year from the original due date of the tax till payment. For wrongly availed ITC, interest under Sec 50(3) runs only from the date it was utilised.

2. P

   Provisions and law

   • Sec 50(1), CGST Act 2017Interest is payable on tax paid late for the period of delay at the notified rate (18 percent a year); on a late return it is levied only on the portion paid in cash, except where proceedings under Sec 73, 74 or 74A have started.
   • Sec 50(3), CGST Act 2017Interest is payable on ITC wrongly availed and utilised, from the date of utilisation till reversal, at the notified rate (18 percent a year).
   • Rule 88B, CGST Rules 2017Interest on a late return is on the cash portion only; amounts already in the cash ledger by the due date are excluded; interest on wrongly availed ITC runs from utilisation till reversal.
3. A

   Analysis

   For short payment of ₹1,00,000 due on 20 July 2023 and paid on 20 July 2026, three years of interest at 18 percent is about ₹54,000. For excess ITC, check whether your credit ledger balance actually fell below the excess; if not, interest may be nil. Officers sometimes compute interest on the full period without checking utilisation. Recompute before paying.

4. C

   Conclusion

   1. 1List each amount with its original due date.
   2. 2Compute 18 percent interest day-wise to the payment date.
   3. 3For ITC items, check utilisation under Rule 88B(3).
   4. 4Compare with the officer's figure and explain differences.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.