The Uttar Pradesh Government plans to demand compensation from the Centre for revenue losses that it suffered in the wake of Central Sales Tax (CST) being phased out in the VAT regime.

“Chief Secretary Anoop Mishra asked the commercial tax department officials at a meeting yesterday to do proper home work to put the demand to the Centre during the next empowered committee meeting in Delhi,” an official said here.

The Government has already written a letter to the Centre in this regard asking it to pay the promised compensation.

According to officials, the Centre has to pay around Rs 2,500 crore as compensation to the state.