Recipient rejected ITC in GSTR-2A (IMS) after filling GSTR 3B by Supplier. What should Supplier do with such tax paid?

[Bishal]

In a case, the supplier is facing a situation where:

E-invoice was raised by in January.

Recipient rejected ITC in GSTR-2A (IMS) after filling GSTR 3B by Supplier.

Supplier paid tax on the supply in February.

Now, the recipient has rejected the supply (someone stole those goods now they are in view that no amount will be paid by them), and

Credit note is not viable (as recipient will not accept it because he rejected input on the original invoice).

Amendment in invoice can not be made as buyer does not accepting the invoice.

-what should the supplier do to save the taxes paid by them not be received from the recipient?

AI Summary

Supplier Seeks GST Refund After Invoice Rejection, Navigating Complex Tax Credit Dispute Under Section 54 A supplier faces a complex GST scenario where goods were invoiced, tax paid, but the recipient rejected the invoice and input tax credit. The recommended approach involves filing a refund claim under Section 54 of the CGST Act, providing documentary evidence of goods rejection, and maintaining comprehensive records to substantiate the tax refund request. Consulting GST authorities and exploring legal recourses are additional potential steps to resolve the tax liability issue.