7 Tax not to be levied on certain sales and purchases

No tax under this Act shall be levied and paid on the turnover of-

(a) sale or purchase where such sale or purchase takes place -

(i) in the course of inter-state trade or commerce; or

(ii) outside the State; or

(iii) in the course of the export out of or in the course of the import into, the territory of India;

(b) sale or purchase of any goods named or described in column 2 of the Schedule I or;

(c) such sale or purchase; or sale or purchase of such goods by such class of dealers, as may be specified in the notification issued by the State Government in this behalf:

Provided that while issuing notification under clause (c), the State Government may impose such conditions and restrictions as may be specified.

Explanation: For the purposes of this Act, sections 3, 4 and 5 of the Central Sales Tax Act, 1956, shall apply respectively for determining whether or not a particular sale or purchase of any goods falls under any of the sub-clauses (i), (ii) and (iii) of clause (a).