Supreme Court ruling on GST emboldens states against PM Modi's govt

Several Indian states are pressuring Prime Minister Narendra Modi’s government to extend a program to continue compensation for losses from a goods and services tax or risk a stalemate in attempts to further simplify the structure. It poses the biggest challenge yet to the country’s most significant tax reform in decades.

Finance ministers from the opposition-led Kerala, West Bengal and Chhattisgarh have said they will raise the issue at a meeting of the GST Council this month.

Tamil Nadu and Bihar, a state governed by Modi’s ally, will also support the push, according to people with knowledge of the matter, who asked