Answer

1. F

   Facts

   Yes, interest is due for the delay on tax that was not paid on time. The cash-only benefit in Sec 50(1) is for supplies declared in the late return of the same period; for sales shifted to a later return, the treatment of ITC lying in the ledger is debated.

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 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

   Say ₹1,00,000 of March sales, with ₹18,000 tax, were reported in April's 3B. A cautious approach pays interest on ₹18,000 for the days between 20 April and 20 May, about ₹266. Some argue that if enough ITC was in the ledger all along, interest should be only on any cash shortfall. Pay the cautious amount if small, and seek advice if large.

4. C

   Conclusion

   1. 1Identify sales reported in a later period.
   2. 2Count days from the original due date to actual payment.
   3. 3Compute interest on the tax.
   4. 4Pay with the return and keep the working.

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