(1) The State Government may, in respect of any entry of any Schedule of this Act, prepare lists of commodities which shall be deemed covered under the said entry of the said Schedule and may, on the basis of Harmonised System of Nomenclature, as adopted by the Government of India under the Central Excise Tariff Act, 1984, allot commodity code to commodities so listed.

(2) The State Government may expand any entry of any Schedule of this Act by providing of commodities, prefixed by commodity code, listed under such entry of such Schedule under sub-section (1) of this section.