Refund of GST deposited by us due to return filed post annual cut off by supplier

[mehta pradip]

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 !

AI Summary

Input Tax Credit re availment under Rule 37A allowed, while recovery of interest and penalty remains legally contestable, may require litigation.
The proviso to Rule 37A allows re availment of input tax credit in Form GSTR 3B when a supplier files returns after the annual cutoff, but it does not address re crediting of interest and penalty; interest is argued to be compensatory and not recoverable twice, while penalty liability depends on the specific legal provision and may be contested. Remedies include filing a refund application for amounts paid and seeking writ relief where necessary, with outcomes dependent on factual and procedural circumstances surrounding the original payments.