GST not to impinge on state fiscal autonomy: Mitra

Implementation of Goods and Services Tax (GST) would not impinge on fiscal autonomy of the state as feared by many, Finance Secretary Sunil Mitra today said.Under the present tax administration the Centre's taxbase was not available to states and vice versa and the implementation of GST would benefit both in widening up the taxbase, he said speaking at a panel discussion 'Fiscal autonomy and GST' here.With the GST, the states would be able get a share of service tax collection which was a growing area of taxation."Then where is the fear of the states losing fiscal autonomy? If that be the case, the Union would also be losing its fiscal autonomy," he said.The GST would make the country's manufacturing sector more competitive internationally and do away with the distortions in the existing tax regime, Mitra added.A Constitutional Amendment Bill on GST was introduced in the Lok Sabha in the last Budget Session.The GST would subsume most of the indirect taxes like excise duty and service tax at the central level and VAT on the state front, besides local levies.The implementation of GST, considered to be a major tax reform, has been stuck for years due to differences between the Centre and some states over the new structure.