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UP demands setting up of GST Compensation Authority

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Virendra Singh Rawat New Delhi/ Lucknow
Last Updated : Jan 25 2013 | 2:53 AM IST

Reiterates claims for tax loss at Rs 2,527 crore

Uttar Pradesh government has demanded setting up of Goods and Service Tax (GST) Compensation Authority before the new tax regime is implemented by the Centre.

Besides, the state has reiterated its demand for full settlement of its Rs 2,527 crore claim for Central sales tax losses it had incurred in the last three financial years viz. 2007-08, 2008-09 and 2009-10.

Representing Uttar Pradesh at the GST empowered committee meeting of the state finance ministers in New Delhi, state commercial tax minister Nakul Dubey opposed the proposed setting up of GST Dispute Settlement Authority.

“Since the observations of the GST Council are recommendatory in nature, there is no need for the constitution of GST Dispute Settlement Authority,” he added.

He said the compensation claims of the state were duly certified by the Comptroller and Auditor General (CAG) as mandated under the provision. “However, against our claims of Rs 2,527 crore, the Centre has released only Rs 118 crore,” he lamented.

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Charging the Centre with meting out step-motherly treatment to Uttar Pradesh, Dubey said the compensation payment to other states was much higher compared to the state. Andhra Pradesh was given Rs 3,541 crore, followed by Haryana (Rs 2,969 crore), Delhi (Rs 2,591 crore), Tamil Nadu (Rs 2,455 crore), Karnataka (Rs 2,314 crore) and Gujarat (Rs 1,951 crore).

He underlined the Centre should immediately settle the compensation claims of Uttar Pradesh and other states and pave the way for the implementation of GST.

Dubey claimed the Centre wanted to amend the constitution for GST without first finalising the framework for the new tax regime, which would tantamount to breaching the autonomy of the states.

Mayawati government had already clarified it would oppose the tax regime, which increased the tax burden on small industry and accrued benefit to the large industry, capitalists and multi-nationals. Uttar Pradesh had implemented VAT in January 2008.

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First Published: Feb 14 2011 | 12:08 AM IST

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