(1) Any registered dealer, who would have continued to be so liable to pay tax under the Himachal Pradesh General Sales Tax Act, 1968, (hereinafter in this section called the 'said Act') had this Act not come into force, shall be deemed to be registered under this Act.

(2) Where, on the date of commencement of this Act, a registered dealer holds the stock of any taxable goods, purchased by him on or after 1st April, 2004, he shall furnish the particulars thereof, in such form within such period, in such manner and to such Authority, as may be prescribed.

(3) Where the taxable goods, referred to in sub-section (2), held in stock by a registered dealer (other than the dealers falling in section 7 or sub-section (2) of section 16) on the date of commencement of this Act are those on which tax under the said Act has suffered at the first stage of sale, and are resold by him after the commencement of this Act, an input tax credit shall be allowed to him in respect of the amount of tax proved to have been paid, on the purchase of such goods, under the said Act:

Provided that the input tax credit shall be allowed to a dealer, registered under this Act on or after 1st day of April, 2005, in respect of purchases of taxable goods where such purchases are for resale or use in manufacture of goods for sale and that such purchases have been made within three months prior to the date of registration.

(4) The Financial Commissioner functioning under the said Act before the commencement of this Act shall, on and from the date of commencement of this Act, continue to function as such under this Act, until the State Government, establishes the Tribunal under section 44.

(5) Any dealer who manufactures and sells goods and who, immediately before the commencement of this Act, was enjoying the benefit of any incentive of sales tax leviable on the sale of manufactured goods under the said Act and who would have continued to be eligible for such incentive on the date of commencement of this Act, had this Act not come into force, may be allowed by the State Government, by notification, -

(a) to continue to avail of the benefit of exemption from payment of tax on the sale of manufactured goods made by such dealer himself for the unexpired period, subject to the condition that no input tax credit shall be allowed to the subsequent dealer purchasing goods manufactured and sold by such dealer (industrial unit), or

(b) to opt, in the prescribed manner, to avail of the facility of making deferred payment of tax for the unexpired period of incentive instead of availing the exemption specified in clause (a), or

(c) to continue to avail of the facility of making deferred payment of tax on the sale of manufactured goods made by such dealer himself for the unexpired period and such dealer (industrial unit) shall be eligible to issue tax invoice and to claim input tax credit subject to the provisions of section 11 of this Act.

Provided that the State Government may, by notification, allow any dealer, whether registered before or after the commencement of this Act, to avail of any incentive of tax leviable on the sale of manufactured goods under the Act, if such incentive has been declared by the State Government before the commencement of this Act:

Provided further that the State Government may by notification, in lieu of the incentive of exemption from tax under the preceding proviso, allow only the facility of making deferred payment of tax, subject to such conditions as it may specify therein.]

(6) Notwithstanding anything to the contrary contained in this Act, the State Government may accept from any registered dealer, who is an importer, or manufacturer and is not entitled to enjoy the benefit of exemption from payment of tax, or deferment of payment of tax, who, may at his option pay, in lieu of the tax payable by him on the sale of such goods, the tax at such rate on the maximum retail price of such goods, as the State Government may by notification, specify, and different rates of tax may be fixed for different items of such goods.

(7) Notwithstanding anything to the contrary contained in subsection (5), the State Government may, issue a notification or make a Scheme, to provide for facility of making deferred payment of tax, with retrospective effect so as to be effective from any day on or after 1st day of April, 2005.