(1) Subject to such conditions as it may impose, the Government may, if it is necessary so to do in the public interest, by notification in the Official Gazette, exempt by way of appropriate Schemes or otherwise, in conformity with the provisions of this Act any sales or purchases made to or by a class of dealers or persons specified in the said notification from payment of the whole or any part of any tax payable under the provisions of this Act and any notification issued under this section may be issued so as to be retrospective to any date not earlier than the date of commencement of the Act and such exemption shall take effect from the date of publication of the notification in the Official Gazette or such other earlier or later date as may be mentioned therein:

Provided that the Government may withdraw such exemption at any time as it may think fit and proper:

Provided further that when exemption is granted in the form of remission, the dealer shall be entitled to retain the part or whole of tax collected by way of subsidy from the Government subject to maximum permissible monetary limit and/or time limit and other conditions as may be prescribed in the appropriate scheme:

Provided also that the Government may, if it is necessary so to do in the public interest, by notification in the Official Gazette, exempt a part of sale price specified in the said notification from payment of tax payable under the provision of the Act.

(2) The sale of goods to any person or international organisations as specified in the Eighth Schedule appended to this Act shall be zero-rated.

The persons or International Organizations listed in the said Schedule may apply for refund of VAT paid for goods purchased in the State subject to conditions as may be prescribed.