Answer

1. F

   Facts

   Interest at 18 percent a year applies on tax paid late in cash. Tax set off from ITC does not attract interest.

2. P

   Provisions and law

   • Sec 50(1), CGST Act 2017Interest at 18 percent a year on tax paid late
3. A

   Analysis

   Sec 50(1) charges interest on the net cash liability from the day after the due date. Example: ₹60,000 tax paid in cash 90 days late; interest is about ₹60,000 x 18 percent x 90 / 365, roughly ₹2,660. Enter interest in GSTR-3B Table 5.1 if the portal does not compute it.

4. C

   Conclusion

   1. 1Work out the cash part of the tax.
   2. 2Calculate interest for the days of delay.
   3. 3Add it in the return.
   4. 4Pay it in cash with the tax.

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