For the purpose of first proviso to sub-section(1) of section 28 a dealer may apply for pre-assessment refund of excess input tax credit against bank guarantee of equal amount subject to the following conditions:-

(i) the dealer has a gross turnover of five crore rupees and above in the preceding year;

(ii) all statutory Forms under the Himachal Pradesh Value Added Tax Act, 2005 and Central Sales Tax Act, 1956, as applicable, for the year under pre-assessment refund claim, have been submitted alongwith the application for refund;

(iii) the dealer is not a tax or return defaulter and has not been penalized for any offence under the Himachal Pradesh Value Added Tax Act, 2005 for the past three years;

(iv)the dealer must have filed all such returns online electronically for the period to which the claim pertains;

(v) the claim for refund has been filed in Form VAT-XLV by the dealer;

(vi)the claimant dealer shall be solely responsible for verification of the tax payments made by the sellers on whose tax invoices he has claimed the input tax credit and shall ensure that the sellers have deposited the tax in respect of his purchases from them. If the sellers have not paid the tax, the claimant dealer shall make the said payment alongwith interest. However, for the year 2014-15 onwards such claims shall be entertained only if the tax payment by all the dealers involved in the input tax credit have been made electronically through the official website of the Department; and

(vii) the refund claim may be claimed manually or electronically through the official website of the Department.