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The Andhra State comprising parts of the erstwhile Madras province was constituted on October 1st 1953. The Madras General Sales Tax Act, 1939 was made applicable to the New State.

Subsequently the Andhra Sales Tax Enquiry committee was appointed by the government and based on its recommendations the following changes were effected.

In the year 1962 the national council of applied economic research headed by Dr.P.S.Lokanatham popularly called lokanatham committee appointed by the Government reviewed the Sales Tax Structure and made several recommendations the various recommendations accepted by the government were incorporated in the APGST ACT by ACT No.16 of 1963 w.e.f. 1-8-1963 .

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