Answer

1. F

   Facts

   Interest under Sec 50 is 18 percent a year from the day after the original due date to the date of payment. For wrongly availed and utilised ITC, interest is 18 percent from the date of utilisation.

2. P

   Provisions and law

   • Sec 50, CGST Act 2017Interest on delayed tax and on wrongly availed and utilised ITC
   • Sec 73(5), CGST Act 2017Tax and interest can be paid before notice, on your own or on the officer's ascertainment, with no penalty in non-fraud cases up to FY 2023-24
3. A

   Analysis

   For ₹1 lakh tax due on 20 April 2024 paid on 20 October 2025, the delay is 548 days. Interest = 1,00,000 × 18% × 548/365 = about ₹27,025. Check that the officer's figure uses the right dates.

4. C

   Conclusion

   1. 1Find the original due date.
   2. 2Count days to your payment date.
   3. 3Compute interest at 18 percent.
   4. 4Pay with tax in DRC-03.

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