Congress party refused to retract from conditions it has laid down for backing the passage of a goods & services tax ( GST ) bill in the Parliament.
Proposed reform seeks to replace several federal and state levies, transforming the nation of 1.2 billion people into a customs union.
Supporters say the new sales tax will add up to two percentage points to country’s economic growth .
Congress said it would back the bill if the Centre agreed to cap the tax rate at 18 per cent and create an independent mechanism to resolve disputes on revenue sharing between states.
"A simple solution of a cap of 18 percent has to be arrived at and a disputes resolution process has to be arrived and GST will be supported by the Congress party," its national media coordinator, Randeep Surjewala said.