Answer

1. F

   Facts

   Sec 50(1) charges 18 percent a year on tax paid late, counted from the day after the due date to the date of payment. Rule 88B says interest is on the part paid in cash.

2. P

   Provisions and law

   • Sec 50, CGST Act 2017Interest at 18 percent a year on tax paid late, on the cash part of the liability
   • Rule 88B, CGST Rules 2017Interest on delayed tax is computed on the portion paid through the cash ledger
3. A

   Analysis

   For ₹3 lakh tax for January paid on 20 May instead of 20 February, delay is 89 days. Interest = 3,00,000 × 18% × 89/365 = about ₹13,167. If ITC was available in the ledger throughout and you pay from credit, interest liability is limited by Rule 88B, check facts.

4. C

   Conclusion

   1. 1Find the original due date of the return.
   2. 2Count days to the payment date.
   3. 3Compute interest on the cash part.
   4. 4Pay through DRC-03.

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