Summary
State Tax Department, Uttar Pradesh has issued a circular prescribing a Standard Operating Procedure (SOP) for recovery of pending Sales Tax, Trade Tax, Commercial Tax and VAT dues by treating them as land revenue, including attachment and auction of movable and immovable property.
Official circular issued by the Office of the Commissioner, State Tax, Uttar Pradesh dated 05 December 2025.
Refer PDF for complete text and Standard Operating Procedure.
Frequently Asked Questions
Circular No. 1364/2025-26 issued by the Commissioner, State Tax, UP prescribes a Standard Operating Procedure (SOP) for recovering pending Sales Tax, Trade Tax, Commercial Tax, and VAT dues by treating them as land revenue. The process includes attachment and auction of movable and immovable property of defaulters. This circular is effective from 05 December 2025 and applies to all pending dues under these tax heads in Uttar Pradesh.
Yes, under the SOP prescribed by Circular No. 1364/2025-26, the UP State Tax Department is empowered to attach both movable and immovable property of taxpayers who have pending Sales Tax, Trade Tax, or VAT dues. These dues are treated as land revenue, giving authorities additional recovery powers. Auction proceedings can also be initiated after attachment to recover outstanding tax liabilities.
The UP Circular No. 1364/2025-26 covers recovery of pending dues under Sales Tax, Trade Tax, Commercial Tax, and Value Added Tax (VAT). These are legacy taxes that existed before the GST regime was introduced in 2017. The State Tax Department, Uttar Pradesh can now recover such dues by following the land revenue recovery procedure, including property attachment and auction.
Even after GST implementation, pending VAT, Trade Tax, Commercial Tax, and Sales Tax dues remain recoverable under the respective state Acts. As per Circular No. 1364/2025-26 issued in December 2025, UP State Tax Department has formalized a recovery SOP treating such dues as land revenue. Defaulters may face attachment and auction of movable or immovable property. Taxpayers should settle legacy tax arrears to avoid coercive recovery action.
Under Circular No. 1364/2025-26, the UP State Tax Department follows a prescribed SOP where outstanding Sales Tax, VAT, or Trade Tax dues are classified as land revenue arrears. This allows recovery through Revenue Recovery Act provisions, enabling attachment of movable and immovable property followed by public auction if dues remain unpaid. The process is overseen by the Office of the Commissioner, State Tax, Uttar Pradesh, ensuring structured enforcement.