(1) Every registered dealer, other than those enjoying composition under sub-section (3), sub-section (3A), or sub-section (3B), or sub-section (6) of section 16, or sub-section (4) of section 18, shall, in addition to the tax payable under any other provisions of this Act, be liable to pay tax on that part of his turnover of purchases which represents-

(a) purchases of goods which are not meant for the purposes specified in clause (a) to clause (i), of sub-section (4) of section 22; or

(b) purchases of goods specified in the negative list appended to section 22 where no input tax credit or input tax rebate is allowed.

(2) Every registered dealer enjoying composition under any of the sub-sections of section 16 or under sub-section (4) of section 18, shall, in addition to tax payable under any of the provisions of the Act, be also liable to pay tax on turnover of purchases, where his turnover of sales or contractual transfer price, as the case may be, in the previous year, or in the case of a dealer registered in a year, from the start of that year, is more than rupees fifty lakh.