(1) Any dealer who pays tax under sub-section (2) of section 6 of the Act or entry tax under section 3 of the Kerala Tax on Entry of Good into Local Areas Act, 1994(15 of 1994) in respect of any goods intended for sale or for use in manufacture of taxable goods in the State shall claim it in the return for the month in which the tax specified under clause (a) or (b), as the case may be, of the said section is paid.

(2) Where the special rebate allowed under sub-rule (1) is not fully set off during the month in which it is allowed, the rebate so remaining unadjusted shall be dealt with in accordance with the provisions of sub-section (3) of section 12.

(3) The procedure prescribed under rule 13 for claiming input tax credit in respect of capital goods shall, with necessary changes, apply to special rebate in respect of capital goods.