Answer

1. F

   Facts

   Yes. You can pay the accepted part with interest through DRC-03 and contest the rest in DRC-06. Paying early can remove penalty on that part under the relevant section.

2. P

   Provisions and law

   • Rule 142, CGST Rules 2017Summary of notice in DRC-01, reply in DRC-06, order summary in DRC-07, payment in DRC-03
   • Sec 73, CGST Act 2017Demand where tax is short paid or ITC wrongly taken without fraud, for periods up to FY 2023-24
   • Sec 74A, CGST Act 2017Single demand provision for FY 2024-25 onwards, with separate penalties for fraud and non-fraud cases
3. A

   Analysis

   Paying ₹2 lakh plus interest within 30 days under Sec 73, or 60 days under Sec 74A, saves penalty on that portion. In the reply, say the amount was paid and argue the remaining ₹8 lakh.

4. C

   Conclusion

   1. 1Separate accepted and disputed amounts.
   2. 2Pay the accepted amount with interest through DRC-03.
   3. 3Mention the payment ARN in DRC-06.
   4. 4Contest the rest with grounds.

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