Answer

1. F

   Facts

   If the excess is a genuine mistake, pay it back through DRC-03 with interest under Sec 50(3) if it was used, and quote the ARN in Part B. Paying before a show cause notice avoids penalty in non-fraud cases.

2. P

   Provisions and law

   • Sec 50(3), CGST Act 2017Interest on ITC wrongly availed and utilised
   • Rule 88B, CGST Rules 2017How interest is computed on late cash payment and on wrongly utilised ITC
   • Sec 73, CGST Act 2017Demand for tax short paid without fraud, for periods up to FY 2023-24
3. A

   Analysis

   If ₹2,00,000 excess was claimed and used for 45 days, interest is about ₹2,00,000 x 18% x 45 / 365, roughly ₹4,438. Paying both through DRC-03 closes the issue at the lowest cost. Waiting for a show cause notice adds penalty risk and more interest.

4. C

   Conclusion

   1. 1Confirm the excess by head
   2. 2Check the credit ledger to see if and for how long it was used
   3. 3Compute interest under Rule 88B
   4. 4Pay tax and interest through DRC-03
   5. 5Quote the ARN in Part B and file

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