We purchased material from a public limited company in Feb. 2018 & took GST credit .The supplier did not file return from Feb. 2018 onward & also did not pay GST. The Department cancelled supplier's registration after Feb.2018 but gave effect from 1.2.2018 due to non filing of Returns. So we are made to pay GST along with interest & penalty .
Then supplier filed pending Returns along with GST, interest & penalty in Nov. 2022. So GST amount reflected in our GSTR-2B with remark - Return filled post annual cut off. So GST credit was denied to us .
Can we claim refund of GST , interest & penalty as supplier has paid the same !
Company Denied GST Credit Despite Supplier's Compliance; Rule 37A Re-Availment Possible, Legal Action Suggested for Interest Issues. A company faced issues with GST credit denial after their supplier's registration was canceled due to non-filing of returns. The supplier later filed the returns and paid GST, interest, and penalty, but the company was still denied credit. A response indicated that under Rule 37A, while GST credit can be re-availed, interest and penalty issues might require litigation. Another response questioned the payment process and suggested ensuring proper legal procedures were followed. It was advised to file a refund application, as the department should not benefit twice, and to consider a writ in the High Court if necessary. (AI Summary)
TaxTMI 
TaxTMI 
