Replace the receiver, but there are none available as far as I know. Check on Gunbroker every day. Have a gunsmith familiar with rebarreling the carbine do the work.
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I would also check for a receiver on the CMP Carbine forum. They have a want to sell for Carbine parts, IIRC. Most of the stuff listed there is a fair price.
The first thing you need to do is to take pictures of the damaged area first and post them here. If it's a spring tube then the damage may not be bad or a problem. It is still cheaper to get photos and post them then to have work done on the carbine if it turns out not to needed. If it's takes awhile that's OK as we are not going anywhere and will always be glad to advise you.
It can be fixed if you want to spend the money?
Shawn 1941 M1 Garand Lend Lease Restoration video 2 Vulcan Gun Refinishing - YouTube
Here's a thread about receivers for sale on CMP forum.
Receivers for sale - CMP Forums
The receiver is scrap; however you can part it out and probably make enough to buy another good shooter carbine if you're lucky. A good barrel is valuable, as are the trigger housing and internals if they have the right markings. Just be sure to find somebody with the proper receiver and barrel wrenches to remove it., or you risk damaging the gas cylinder. You can list and sell everything except the receiver on Gunbroker.com without an FFL. You can scan that site to get an idea of prices. You can also list parts in the WTS column of this site.
The barrel can be removed with ease by padding and holding it by the flats. The receiver doesn't matter in this case. It can be grabbed by a pipe wrench for that matter, anything will do because it's not being re-used...
thanks for the input. i guess i have been lucky with this thing not blowing up in my face. If anyone can keep an eye out for m1 carbine recievers at a decent price, i would appreciate it
Here is a most recent Sale.
M1 carbine quality hardware stripped receiver 6/43 : Semi Auto Rifles at GunBroker.com