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Tax paid in DRC-03 under wrong minor head - Goods and Services Tax - GSTExtract The registered person was issued a DRC-07 order against a wrongful ITC claim. The person paid the tax demanded (without the interest and penalty component) as a voluntary payment with DRC-03 . The payment was made under the right act (IGST) but the wrong minor head, ie.. it was paid to the Others head instead of to the Tax head. Hence the system doesnt allow the DRC-03 to be set off against the Demand in DRC-03A . We tried requesting a refund of the amount paid under the wrong head so that we may pay it again under the right head but this was denied as the original DRC-07 order still shows as outstanding as the DRC-03 payment is not yet linked to the DRC-07 . The person wants to apply for waiver of interest and penalty under 128A . Can we apply for the same with the above mentioned DRC-03 challan even if the original demand is still marked as unpaid? Any input from the experts is welcome.
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