Answer

1. F

   Facts

   Interest runs from the day after the due date until the date of payment. The due date for monthly GSTR-3B is the 20th of the next month, and the 22nd or 24th for quarterly filers depending on the State.

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 39(7), CGST Act 2017Tax due as per the return must be paid to the Government by the last date on which the return is due.
3. A

   Analysis

   For tax due on 20 August paid on 25 August, interest is for 5 days. The date of payment is the date the cash is debited for the return, or the date credited to the cash ledger if it stayed there under Rule 88B. Use 365 days for the year. Small delays still create interest, but amounts are modest.

4. C

   Conclusion

   1. 1Identify the correct due date for your filing type.
   2. 2Count days after the due date till payment.
   3. 3Compute interest at 18 percent per 365 days.
   4. 4Pay with the return.

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