Answer

1. F

   Facts

   Interest at 18 percent a year applies on composition tax paid after the 18th of the month after the quarter.

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.
   • Rule 62, CGST Rules 2017A composition taxpayer files CMP-08 by the 18th of the month after each quarter and GSTR-4 by 30 June after the year (Notification 12/2024-CT).
3. A

   Analysis

   Since composition tax is paid entirely in cash, interest is on the full tax. For ₹15,000 paid 25 days late, interest is about ₹185. Enter it in the interest field of CMP-08. Late filing also affects e-way bill access after two missed quarters.

4. C

   Conclusion

   1. 1Count days from the 18th.
   2. 2Compute 18 percent interest on the tax.
   3. 3Enter interest in CMP-08.
   4. 4Pay in cash.

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