Lucknow, Dec 7 (PTI) Fixing pre-conditions for enforcing Goods and Service Tax (GST) regime from 2011 in the state, the U.P government today sought an early settlement of its claim for ₹ 2,527.93 crore from the Centre for its roll out.

"Centre should abide by its promise and take decision about early settlement of the state's claim for ₹ 2,527.93 crore, if it was sincere and honest about its intention", state institutional finance minister Nakul Dubey said.

The claim put up by UP, he said, was based on the calculation of loss suffered by it on the Central taxes on account of the Value Added Tax (VAT) regime for the past three financial years of 2007-08, 2008-09 and 2009-10.

Alleging that state's dues remained unsettled despite repeated reminders sent to the Centre, Dubey in a statement said non-payment of these dues had created a "sense of distrust".

State demand for settlement of central tax dues as precondition to GST rollout, seeking early resolution before implementation. The state conditioned GST implementation on early settlement of its pending central-tax claim, asserting losses in central-tax receipts due to the prior Value Added Tax regime for three financial years and demanding prompt discharge by the Centre as a precondition to proceed; unresolved dues and ignored reminders have produced a sense of distrust between governments.