Answer

1. F

   Facts

   Interest under Sec 50(1) is 18 percent a year on tax paid after the due date, for the number of days of delay. The rate is notified in Notification 13/2017-CT.

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.
   • Notification 13/2017-CTNotifies the interest rate of 18 percent a year under Sec 50(1).
3. A

   Analysis

   If ₹50,000 tax due on 20 June is paid on 10 July, the delay is 20 days. Interest is ₹50,000 × 18 percent × 20/365, which is about ₹493. Interest is paid in cash, with the return or through DRC-03. It applies in addition to any late fee for the return.

4. C

   Conclusion

   1. 1Find the due date of the return.
   2. 2Count days of delay till the payment date.
   3. 3Compute 18 percent interest day-wise.
   4. 4Pay it in cash with the return.

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