The correct answer is B. No, as one of the conditions of section 16(2) is not fulfilled.
Section 16(2) of the Central Goods and Services Tax Act, 2017 (CGST Act) states that a recipient of goods or services shall be entitled to avail input tax credit on the inward supply of goods or services, subject to the following conditions:
(a) the recipient has received the goods or services;
(b) the invoice for the supply has been issued; and
(c) the payment for the supply has been made.
In the case given, the supplier has deposited the taxes but the receiver has not received the goods. Therefore, the condition mentioned in clause (a) of section 16(2) is not fulfilled and the receiver is not entitled to avail input tax credit.
Option A is incorrect because the input tax credit will not be automatically shown in the recipient’s monthly returns if the conditions mentioned in section 16(2) are not fulfilled.
Option C is incorrect because the receiver cannot avail input tax credit unless the conditions mentioned in section 16(2) are fulfilled.
Option D is incorrect because the answer is B.