Bihar Chief Minister Nitish Kumar, usually not in league with Prime Minister Narendra Modi, had, last week, phoned Finance Minister Arun Jaitley, offering to convene a special sitting to sign off on the proposal.
The Chief Minister has earlier said that the GST could add about 8,000 crores to Bihar’s revenue every year.
The proposal for the GST, India’s biggest ever tax reform, was cleared by the Rajya Sabha on August 3.
What parliament and then states are in the process of approving is an amendment to the constitution that gives the government new taxation powers. Then, separate legislation will be sent for review on the rate of the new GST, as well as its scope.
State governments widely support the GST because it will boost their share of taxes and make cross-border trade far smoother.
States that produce goods have been assured that they will be compensated for five years by the centre for the losses they will incur since the GST is applied on consumption.
On Friday, Assam cleared the bill only four days after both houses of parliament unanimously passed it.
