(1) where a registered dealer, who has been granted certificate of registration under the Act and assigned with TIN.-

(a) is no longer effecting purchase or sale of goods in course of interstate trade or commerce;

(b) is no longer dispatching or receiving goods otherwise than by way of sales to or from outside the State; and

(c) whose gross turnover has, during each of the preceding three consecutive years failed to exceed rupees fifty lakh;

the dealer may make an application electronically in Form VAT-106A to the registering authority for issue of certificate of registration and assignment of SRIN under sub rule (4) of rule 19.

(2) where the registering authority, after examination of the application furnished under sub-rule (1) is satisfied that the particulars furnished in the application are correct and complete in all respect and the claim of the dealer for assignment of SRIN is admissible under the Act. he may grant a certificate of registration to such applicant in Form VAT-001 and assign him with a SRIN:

Provided that when the certificate of registration under this sub-rule is granted, the certificate of registration already granted in Form VAT-103 along with the TIN assigned shall be deemed to have been cancelled and such cancellation shall take effect from the date, the dealer is granted with a certificate of registration under sub-rule (2):

Provided further that the dealer, on being granted registration certificate in Form VAT-001 under sub-rule (2) shall surrender the certificate of registration granted in Form VAT-103 along with the TIN assigned to the registering authority for cancellation.

(3) The certificate of registration granted under sub-rule (2) shall be effective from the date of order granting such registration and no input tax credit shall be allowed from that date.

(4) On assignment of SRIN to a registered dealer after cancellation of TIN under sub-rule (2), the input tax credit available on the date of cancellation of TIN, if any, shall be deemed to have been reduced to nil.

(5) In the event of cancellation of TIN and assignment of SRIN to a registered dealer under sub-rule (2), the provisions contained in sub section (7), (8) and (9) of section 31 of the Act shall mutatis-mutandis apply.