(1) A registered dealer who sells taxable goods to another registered dealer, shall provide him, at the time of sale, with a tax invoice containing such particulars as may be prescribed and retain a copy thereof:

Provided that a tax invoice shall not be issued by a dealer

(a) in respect of the goods exempt by notification under sub-section (2) of section 5;

(b) Omitted w.e.f. 01-07-2017;

(c) for sale in the course of inter-State trade or commerce or export out of the territory of India:

(d) to a person who is not a registered dealer.

(e) in such other cases as the State Government may by notification in the Official Gazette, specify.

(2) Except when tax-invoice is issued under sub-section (1), if a registered dealer sells any goods exceeding rupees one hundred in value in any one transaction to any person, he shall issue to the purchaser a retail invoice, containing such particulars as may be prescribed and retain a copy thereof.

(3) if any registered dealer contravenes the provisions of sub-section (1) or (2), the Commissioner may, after giving him an opportunity of being heard, direct him to pay by way of penalty a sum not exceeding ten percent of the amount of the transaction of sale in respect of which such contravention has been made.