(1) The State Government may, by Notification, fix the rate of tax, with prospective or retrospective effect not exceeding thirty per centum of the taxable turnover of sales, including a sale referred to in sub-clause (c) of clause (30) of section 2, of goods specified in Schedule IV, and different rates may be fixed for different items of such goods.

PROVIDED that the rate of tax not exceeding seventy-five per centum of the taxable turnover of sales of lottery tickets as specified in schedule IV may be fixed.

(2) Notwithstanding anything contained in sub-section (1), the State Government may, if it is satisfied that it is necessary so to do in the public interest, by notification, and subject to such conditions as may be specified therein, direct that tax shall be payable at such rate lower than that fixed under sub-section (1), or exempt from payment a part of the tax payable by such dealer, or category of dealers, or for such class of sales, or for sale of such class or classes of goods, as may be specified in the notification.