Answer

1. F

   Facts

   18 percent. Notification 09/2022-CT reduced the Sec 50(3) rate from 24 percent to 18 percent, with effect from 1 July 2017.

2. P

   Provisions and law

   • Sec 50(3), CGST Act 2017Interest is payable on ITC wrongly availed and utilised, from the date of utilisation till reversal, at the notified rate (18 percent a year).
   • Notification 09/2022-CTReduced the interest rate under Sec 50(3) to 18 percent a year, with effect from 1 July 2017.
   • Rule 88B, CGST Rules 2017Interest on a late return is on the cash portion only; amounts already in the cash ledger by the due date are excluded; interest on wrongly availed ITC runs from utilisation till reversal.
3. A

   Analysis

   Interest runs from the date the credit was utilised until it is reversed or paid. Rule 88B explains that utilisation date is the earlier of the return due date or filing date when used through a return. For ₹1,00,000 utilised for 200 days, interest is about ₹9,863. Old notices quoting 24 percent can be challenged.

4. C

   Conclusion

   1. 1Find the date of utilisation as per Rule 88B.
   2. 2Count days till reversal.
   3. 3Apply 18 percent.
   4. 4Pay in cash through DRC-03 or GSTR-3B.

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