"The opposition parties will become emboldened with the Bihar elections result, which will make it more difficult for the Modi government to go through with the GST Bill," economist Arun Kumar, a professor at Jawaharlal Nehru University said.

The GST seeks to create a single Indian market by subsuming most indirect taxes levies of the central and state governments, such as excise duty, service tax and value-added tax that is seen as facilitating tax compliance, and curbing inflation through better supply chains.

"The government will be willing to compromise, even on other major economic legislation like the Whistleblowers Bill for protecting informants, which the government was trying to dilute protection provisions. This is better from the governance perspective," he said.

The Opposition has been against the extra 1 percent GST levy as they feel this would not only push up prices, but also have a cascading effect. In this regard, the Confederation of All India Traders (CAIT) has appealed to Finance Minister Arun Jaitley to withdraw the proposed additional tax.

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