The government on Tuesday succeeded in introducing a goods and services tax Bill in the Rajya Sabha, but the house was adjourned for the day shortly afterwards amid protests by Congress members.
Proceedings in the Rajya Sabha were adjourned repeatedly as members of the opposition Congress party stormed into the well shouting "shut it down."
Supporters say the GST Bill will add up to two percentage points to economic growth.
"They don't want the Indian economy to grow," Finance Minister Arun Jaitley said, barely audible above opposition shouts of "this will not go on". He called the protest "merely a pretext".
Congress leader Anand Sharma said the obstruction replicated tactics by the BJP, which blocked GST and other reforms when Congress was in power.
Junior finance minister Jayant Sinha made a plea for order, saying parliament just needed to function for one day to pass the bill and accusing Congress of blocking economic progress.
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"We must try to pass GST in any way possible," he said. "This is very irrational."
Congress is demanding the resignation of senior BJP leaders it accuses of graft before allowing parliament to work. It also wants changes to the bill, which it says has been diluted to win support from states.
Prime Minister Narendra Modi has made the constitutional amendment to allow the new tax the main goal of the "monsoon" sitting of parliament, which ends on Thursday.
Failure to pass the GST bill will make it hard for Modi to meet a self-imposed 2016 deadline for implementing it.
In a research note, DBS Bank said any holdup "will be negative for market sentiment and could further delay the recovery process".
In a research note, DBS Bank said any holdup "will be negative for market sentiment and could further delay the recovery process".
The government, which does not have a majority in the Rajya Sabha, needs two-thirds of votes in the house to pass the amendment. That is only possible if most opposition parties support it, or if Congress abstains.
Unabated uproar by Congress members in the Lok Sabha too invited the wrath of Speaker Sumitra Mahajan who called their protests "murder of democracy" and "hijacking" the rights of 440 members by 40-50 others in the Opposition.