By abandoning confrontation and seeking consensus, Prime Minister Narendra Modi has pulled off his biggest reform yet, securing the unanimous support of both houses of parliament for a planned Goods and Services Tax (GST).

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Here`s a timeline of how Modi and Finance Minister Arun Jaitley first brought India`s federal states on board, before finally closing the deal at a series of meetings with an opposition Congress party that had become increasingly isolated.

 

WHAT HAPPENS NEXT

 

  • At least half of India`s states and self-governing union territories need to back the GST amendment.
  • The GST Council, a forum bringing together the centre and the states, should draft the key terms and scope of the GST. The government`s chief economic adviser has recommended a main rate of 18 percent, but many states want it to be higher while Congress wants it to be capped.
  • Two new GST bills are expected to come before parliament in the winter session that begins in November. The states, too, are required to pass their own GST bills.
  • The government targets a GST launch date of next April 1, the start of India`s financial year, although experts say that deadline is likely to slip.