EXAMPLE-129
Continuing with previous example, if M/s Madhu had E-credit ledger unutilized balance Rs.250000, how to deals with the balances left after payment of reversal amount from E-credit ledger.
Answer
In this example M/s Madhu paid Rs
1,15,000 which is reversed according to section 18(4) by debiting E- credit ledger.
Balance i.e. 250000-115000 = Rs. 135000 input tax credit would lapse
according to proviso to section 18(4).