The Goods and Service Tax (GST) bill will help to cut business costs and boost tax revenues, government sources informed.
The statement of objects and reasons of the Bill claimed, "The GST would replace a number of indirect taxes presently being levied by the central government and the state governments and is intended to remove cascading of taxes and provide a common national market for goods and services."
However, the approval of two-third of parliament and half of India's 28 states are needed to become the bill in a law.
Sources informed that the bill may miss the deadline of Apr 2012 over the resistance from several states and the main opposition Bharatiya Janata Party (BJP).
Meanwhile, the Opposition walked out of the House today after showing enough uproar against the PM and the government. The Opposition led by BJP leader Sushma Swaraj moved the privilege motion against Manmohan Singh alleging Dr Singh of "misleading the House in cash-for-votes controversy.