(1) A dealer shall be liable to pay turnover tax on his taxable turnover of sales for each tax period under section 16, if he is a retailer and satisfies the following conditions-

(a) his gross turnover does not exceed rupees Fifty lakh during the preceding year.

Explanation-I -For the purpose of this clause, a dealer who is registered under the repealed Act and is deemed to have been registered under the Act and his gross turnover did not exceed rupees Fifty lakh in a period of twelve consecutive months ending on the date immediately preceding the appointed day shall, subject to clauses (b), (c), (d) and (e) be liable to pay turnover tax.

Explanation-II - The expression retailer as referred to in sub-rule (1) shall mean and always be deemed to have meant not to include the works contractor.

(b) he does not purchase or sell goods in course of inter-State trade or commerce;

(c) he does not despatch goods to or receive goods from, outside the state, otherwise than by way of sales or purchases, as the case may be;

(d) he does not import goods from or export goods to, outside the territory of India; and

(e) he does not process or manufacture goods for sale;

(f) he does not execute any works contract.

(2) A dealer liable to pay turnover tax under sub-rule (1) shall be entitled to collect separately the tax payable on the sale of taxable goods made from the buyers.

(3) Omitted w.e.f. 01-07-2017.

(4) Where a dealer liable to pay turnover tax under sub-rule (1) purchases or receives any taxable goods within the state from an unregistered dealer or producer or under circumstances, where, no tax is leviable under the Act, he shall pay tax on the purchase price of such goods at the rate applicable to such goods under Schedule"C" of the Act in addition to the turnover tax payable on its sales.

(5) If a dealer does not satisfy any or more of the conditions specified in subrule (1) at any time of a year, during which he has been paying turnover tax or he intends to pay tax as provided under section 14, he may intimate by exercising option in Form VAT-106 to the registering authority, under whose jurisdiction, the place of business of the dealer is situated.

(6) A dealer, who makes an application under sub-rule (5) shall, subject to the provisions of rule 27, be liable to pay tax in accordance with section 14 and these rules with effect from the date, he is granted certificate of registration under rule 27.

(7) A dealer of any specific class or category, subject to conditions as may be specified by the Government by notification under section 16, shall pay a turnover tax by way of composition, in lieu of tax payable under section 11 a turnover tax at such percentage of the taxable turnover as may be specified in the said notification.

(8) In case of a dealer liable to pay turnover tax under sub-rule (7), the provisions of sub-rules (3) and (4) shall also be applicable.