Chief Minister Yogi Aditynath tabled the Goods and Services Tax (GST) Bill in the House when it reassembled after Governor Ram Naik's address to the joint sitting of the state legislature.
After the House was adjourned for the day, a workshop was held to apprise all legislators of the salient features of the proposed legislation on GST.
On May 2, the UP cabinet had approved a draft bill for implementation of the GST in the state.
After the bill is passed by the assembly, where the BJP has a three-fourth majority, Uttar Pradesh will join the likes of Uttarakhand, Jharkhand, Telangana, Bihar and Rajasthan whose legislatures have given their nod to the indirect tax regime.
"After the new tax regime is implemented, revenue of the state is likely to increase," UP minister Suresh Kumar Khanna said.
"If there is any burden on the state exchequer due to the implementation of GST, the government will meet the demands for the next five years. Petroleum products, however, will not be covered under GST," he said.
The four legislations, which have since got the president's assent, aim to pave way for the roll-out of GST from July 1.
Seen as a path-breaking step in the taxation regime, GST is expected to create a congenial and cohesive atmosphere for business in the country.
Different indirect taxes like the central excise duty, central sales tax and service tax are to be merged with the C-GST, while S-GST will subsume state sales tax, VAT, luxury tax and entertainment tax.
The 'consumer state' of Uttar Pradesh is projected to be a net tax gainer under the new tax regime, as GST is a destination-based taxation system as against manufacturing source based.
Uttar Pradesh had also witnessed its tax kitty burgeon under the Value Added Tax (VAT) regime. VAT was implemented in the northern state on January 1, 2008, during the previous Mayawati-led government.
While successive governments in UP have been optimistic of tax coffers inflating under GST, the compensation clause had been a bone of contention.
Over the past several months, the state commercial tax department had been holding consultative meetings with all the stakeholders, including traders and tax experts, to elicit their views on the new tax regime.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)