Answer

1. F

   Facts

   Interest under Sec 50(3) applies only to ITC wrongly availed and utilised. If the credit ledger balance never fell below the wrong amount, it was not utilised and no interest is due, though the credit must still be reversed.

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
3. A

   Analysis

   If you wrongly claimed ₹80,000 and your credit ledger balance stayed above ₹80,000 every day until reversal, the credit was not used. Rule 88B treats credit as utilised only when the balance falls below the wrong amount. Keep daily ledger extracts to prove this if questioned.

4. C

   Conclusion

   1. 1Download the credit ledger for the period
   2. 2Check the lowest balance after the wrong claim
   3. 3If it never fell below the wrong amount, reverse without interest
   4. 4Note this in Part B with ledger extracts

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