The Modi Government’s decision to send the GST bill for a parliamentary committee has left investors disappointed and stock markets fell more than 2 percent. Faced with strong political opposition, the Government agreed to defer the landmark legislation for a nationwide goods and services tax (GST) on May 12. The bill will now go to a parliamentary committee for review after the opposition Congress party signaled that it will not allow the passage of GST in the Rajya Sabha. The ruling BJP has the biggest majority in the Lok Sabha but is dependent on Congress and other parties to pass bills in the upper house. The decision has left a question mark on meeting the self-imposed deadline to roll out the proposed GST from April 2016 as the bill also requires the approval of more than half of India's 29 states. The GST would have marked a big break from the archaic indirect tax laws of India and could have been a step towards internationally accepted comprehensive value-added indirect tax system.

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