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

GST refund remedy for supplier who paid tax when buyer rejected goods and refused ITC.
Supplier paid GST but buyer rejected ITC and refused the goods; primary operative measures are to cancel the invoice and issue a credit note if the buyer accepts, or otherwise pursue a refund under Section 54 of the CGST Act for taxes paid on supplies not received. The supplier must preserve documentary evidence of rejection, tax payment, and non acceptance, and may consider adjusting subsequent GSTR 3B filings or pursuing recovery actions against the buyer if necessary.