In fact, the frequent tax hikes in Bihar following prohibition was taken as interim measures due to delay in GST roll-out," said a city-based economist, wishing anonymity. As per estimates, the state exchequer suffered losses to the tune of around Rs5,000 crore in revenue due to prohibition. Sources said the state government was keen on implementing prohibition even earlier keeping in mind the expected recovery in its revenue from GST. "Bihar is a consumer state and the government knew that its revenue would increase considerably with a uniform tax regime as stipulated by the GST. In fact, the Nitish government initially wanted to implement part prohibition, followed by total prohibition in later stages only in anticipation of the GST.

Source: Times of India June 29, 2017 20:30 UTC