The states are scheduled to meet on the value-added tax on July 7, nearly two months after the last meeting of the empowered committee of state finance ministers on the issue. The meeting would largely focus on procedural issues, government officials said in New Delhi.

After the secretaries and commissioners of the states meet, the state finance ministers' panel is expected to call upon Finance Minister Jaswant Singh later this month to discuss the Centre's plans for the introduction of the VAT.

The states failed to meet the June 1 deadline for the proposed transition to the VAT after the Centre announced it would come up with a "new roadmap" for the implementation of the tax regime.

According to the finance ministry officials, profligacy on the part of the states with regard to the incorporation of several exemptions in their VAT rate structures and anomalies in legislation were responsible for the postponement.

At the VAT panel's last meeting, West Bengal finance minister and committee chairman Asim Dasgupta had said 11 states, accounting for two-third of the country's trade and industry, wanted to implement the VAT from June 1.

The states, which had announced their intention to change over to the VAT from June 1, finally decided not to go ahead after Singh objected to the "patchwork" implementation of the new tax system in the country.

The Centre, subsequently, signalled its intention to consult the main political parties and the VAT panel on a smooth transition to the new system.

The introduction of the VAT has been deferred more than three times since 2001. So far, only Madhya Pradesh has received a presidential assent for the introduction of the new tax. Haryana has implemented a VAT system, which mandates a 10 per cent VAT rate for the manufacturing and services sectors from April 1 this year.

The Centre wants to build consensus and create greater awareness among traders in the states over the VAT and is thus insisting on simplicity and uniformity in the legislative structures of the different states.

Also, traders across the country said implementation of the VAT in its present form would be detrimental to trade and industry and sought the postponement of the rollout to the next fiscal.