Claiming compensation from Union Government Chief Minister Akhilesh Yadav has written a letter to Prime Minister Narendra Modi saying that the state was losing revenue because of reduction in Central sales tax.
“The state has lost revenue because of reduction in CST from 4 per cent to 2 per cent. A review of the fiscal 2011-12 and 2012-13 shows UP Government’s claim of Rs 2711.62 crore is pending with the Union Government and it should be cleared at the earliest,” Yadav wrote in his letter, copy of which was released to media on Friday.
He said that Government of India had brought down GST from 4 per cent to 3 per cent on April 1, 2007 and in June, 2008 it was further reduced to 2 per cent. Central Government had assured on August 22, 2008 that states losing their revenue would be compensated, he said.
“On the basis of that letter UP Government had sent its claim from 2007-08 to 2012-13. It comes out to Rs 2711.62 crore,” he said and requested PM to release UP’s share of money at the earliest so that it could be used for development schemes.