(1) The Government may by a notification publish in the Official Gazette provide for a scheme of composition subject to such conditions and restrictions as may be provided therein, of tax payable by those dealers who are engaged in the business of selling at retail any goods or merchandise.

(2) For the purpose of this Section a dealer will be considered to be engaged in the business of selling at retail if 9/10^th of his turnover of sales consists of sales made to persons who are not dealers and if any question arises as to whether any particular dealer is a retailer, then the officer in charge of the case shall refer the question to the Commissioner who shall after hearing the dealer if necessary, decide the question

(3) Nothing in this Section shall apply to a dealer who is a manufacturer or who is an importer or who has purchased any goods from a registered dealer whose sales of the said goods are not liable to tax under the provisions of this Act.

(4) Notwithstanding anything contained in this Act, the Government may, by notification, publish in the official gazette and subject to such conditions and restrictions, if any, as may be specified therein, permit any dealer liable to pay tax on sales effected by way of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, to pay, at his option in lieu of the amount of the tax payable by him under this Act, an amount by way of composition at the rate as may be specified in the said notification but not exceeding four per centum of the total contract value of the works contract.

(5) Notwithstanding anything contained in this Act, the Government may, by notification, publish in the official gazette and subject to such conditions and restrictions as may be specified therein, permit any class of dealer to pay in lieu of the tax payable under this Act, for any period, an amount linked with the production capacity or the extent of the business, or calculated at a fixed rate of gross receipts of business or such other thing, to be determined by the Government by way of composition, and to be paid at such intervals and in such manner as may be prescribed, and the Government for the purpose of this Act may, in respect of such class of dealers, prescribe a simplified system of maintenance of accounts and filing of returns which shall remain in force during the period of such composition.

(6) A dealer in whose case composition under this section is in force, shall not:-

(i) be entitled to any claim of ITC in respect of the purchase of any goods by him in the State;

(ii) charge any tax on the invoices in respect of sales of goods made by him; and

(iii) issue tax invoices to any dealer who has purchased to goods from him.