(1) No dealer shall, while being liable to pay tax, carry on business as a dealer unless he has been registered and possesses a certificate of registration:

Provided that a dealer liable to pay tax shall apply for registration within thirty days from the date on which he is first liable to pay such tax:

Provided further that a dealer dealing exclusively in tax-free goods shall not be liable for registration:

Provided also that every dealer liable to pay tax or registered or required to be registered under the Central Sales Tax Act, 1956 shall be required to apply for registration under this Act.

(2) Every dealer required by sub-section (1) to be registered shall make an application in the prescribed manner to the Prescribed Authority.

(3) (a) The Prescribed Authority may conduct such inquiry as he deems fit and may call for such evidence and information as he may deem necessary and after the inquiry, if any, and after considering the evidence and information, if any, he is satisfied that the application for registration made under this section is in order, he shall register the applicant and issue to him a certificate of registration in the prescribed form which shall specify the class or classes of goods dealt in or manufactured by him. The certificate of registration so granted shall not be transferable.

(b) If the Prescribed Authority is satisfied that the particulars contained in the application are not correct or complete or that any evidence or information prescribed for registering the applicant is not furnished, the Prescribed Authority may, after giving the applicant a reasonable opportunity of being heard, reject the application for reasons to be recorded in writing.

(4) For the purposes of identification of a registered dealer liable to pay tax the Prescribed Authority shall issue a registration number known as Taxpayer Identification Number (TIN) or General Registration Number (GRN), as the case may be.

(5) The registration shall take effect from the date of liability where the application for registration is made within the prescribed period of thirty days.

(6) Where the application for registration is not made within the prescribed time, the Prescribed Authority shall grant the certificate of registration from the date of filing such application, but the dealer shall remain liable to pay tax as an unregistered dealer for the period from the date of liability to the date preceding the date of effect of registration.