Verification of Supplier’s GSTR-3B Filing When GSTR-1 is Filed but GSTR-3B Shows Nil Value

[Ganesh Shanmugam]

Dear Experts,

Our supplier has filed GSTR-1, and the details are reflected in our GSTR-2A/2B. Based on this, we have claimed Input Tax Credit (ITC) and have also paid the tax to the supplier. However, the supplier’s GSTR-3B was filed with nil value. As a result, the GST Department has issued us a notice to pay back the claimed ITC.

Currently, the supplier is not responding and appears to have no ongoing business transactions.

Questions

Since we have already paid the tax to the supplier, does this mean we are being forced to pay the tax twice — once to the supplier and again to the GST department?

How should we handle this situation to avoid double payment?

Is there any official way to protect the recipient’s interest and confirm the supplier’s tax filings?

AI Summary

Reversal of Input Tax Credit may be required if supplier's GSTR 3B is nil, with re availment possible later.
When supplier details appear in GSTR-2A/2B but the supplier's GSTR-3B is nil or not filed, the recipient who availed ITC may be required to reverse that credit under the prescribed reversal mechanism if the supplier has not filed the corresponding GSTR-3B by the statutory cut off; the recipient may re avail the credit if the supplier later files. Recipients should file a reply to show cause notices, preserve proof of payment to the supplier, and seek local expert guidance while invoking relevant judicial authorities as available.