In the run-up to the proposed Goods and Services Tax (GST), the Uttar Pradesh government today demanded setting up of an autonomous agency to settle sales tax and Value-Added Tax (VAT) revenue loss claims of the respective state governments.
The state government said, unless such an agency was constituted by the Centre for time-bound reimbursement of pending claims, it would be difficult for states to concede to the assurance by the Centre for similar reimbursements under GST.
Representing Uttar Pradesh at the GST-empowered committee meeting of state finance ministers in New Delhi, state commercial tax minister, Nakul Dubey, further requested the Centre for an urgent settlement of the state’s Rs 2,527-crore claim for sales tax losses, which it had incurred in the last three financial years, 2007-08, 2008-09 and 2009-10.
He suggested the empowered committee should institute an expert group for time-bound study of the likely impact on states’ revenues under GST.
