(1) A dealer intending to set up a factory to manufacture taxable goods, and who anticipate making first taxable sales within the next three years, and applying for VAT registration, shall be treated as a start up business.

(2) A dealer referred to in sub-rule (1) shall make an application in Form JVAT 102, within thirty days of such intention to set up a factory to manufacture taxable goods: including the information, as contained in Annexure-I annexed to Form JVAT 100, for registration before In-charge of the Circle.

Explanation: 'Intention' to set up a factory to manufacture taxable goods shall commence from the date, the application in Form JVAT 102 is filed.

(3) A dealer applying for registration as a start-up business under clause (lii) of Section 2 of the Act may apply to be registered only for a period of thirty-six months prior to making taxable sales.

(4) A dealer registered as a start up business under clause (lii) of Section 2 of the Act may claim a tax credit on each tax return for a period of thirty-six months prior to making taxable sales. The input tax claimed must be in respect of tax paid on inputs relating to prospective taxable business activities.

(5) A dealer registered as a start up business under clause (lii) of Section 2 of the Act shall abide by all the duties and obligations of a VAT dealer including the proper keeping of books of accounts and regular filing of returns.

(6) In-charge of the Circle shall, after such enquiry or verification to his satisfaction; shall issue a registration certificate to this effect and allot a Taxpayer's Identification Number; and issue a Certificate in Form JVAT 107 within thirty days from the date of such application.

(7) A dealer shall cease to be registered under the provisions of clause (lii) of Section 2 of the Act and become registered under the provisions of sub-section 1 of Section 25 of the Act, when that dealer makes a taxable sale in the course of business.

(8) A dealer shall cease to be registered under the provisions of clause (lii) of Section 2 of the Act at the end of a thirty-six months period from the date of registration if no taxable sale has been made. In this case, the registration will be cancelled under the provision of Rules.