(1) Notwithstanding anything contained in this Act, a Value Added Tax shall not be imposed under this Act;

(i) Where such sale or purchase takes place out side the State of Jharkhand; or

(ii) Where such sale or purchase takes place in the course of Import of goods into the territory of India or Export of goods out of the territory of India.

(2) The following shall be Zero-rated sales for the purpose of this Act, and shall be eligible for Input Tax Credit under sub-Section (4) of Section 18 of this Act -

(i) Sale of taxable goods in the course of inter-State trade and commerce falling within the scope of Section 3 of the Central Sales Tax Act, 1956.

(ii) Sale of goods falling within the scope of sub-Sections (1) and (3) of Section 5 of the Central Sales Tax Act, 1956.

(iii) Sale of goods: to an unit located in Special Economic Zone or a STP unit or an EHTP unit or an EOU unit.

(3) For the purpose of this Section, whether a sale or purchase takes place;

(i) outside the State of Jharkhand or

(ii) in the course of inter-state trade and commerce; or

(iii) in the course of Import of goods into the territory of India or Export of goods out of the territory of India.

shall be determined in accordance with the provisions of Section 3, 4 and 5 of the Central Sales Tax Act, 1956.