Answer

1. F

   Facts

   Interest at 18 percent a year is charged on tax paid late, counted from the day after the due date until payment. It is charged only on the part paid in cash, not on tax paid through ITC.

2. P

   Provisions and law

   • Sec 50(1), CGST Act 2017Interest at 18 percent a year on tax paid late, on the portion paid in cash
   • Rule 88B, CGST Rules 2017Method of computing interest on delayed payment
3. A

   Analysis

   Example: cash tax of Rs 1 lakh paid 15 days late. Interest = 1,00,000 x 18 percent x 15 / 365 = about Rs 740. The portal may auto-calculate interest in the next GSTR-3B; check it and correct if needed. Interest is paid in cash only.

4. C

   Conclusion

   1. 1Count days of delay from the due date
   2. 2Compute 18 percent a year on the cash portion
   3. 3Deposit interest through PMT-06
   4. 4Report in GSTR-3B Table 5.1

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