New Delhi, Aug 4 (PTI) States today opposed a draft bill to amend the Constitution, a measure proposed by the Centre for rolling out GST, in its present form as it provides veto power to the Union Finance Minister in matters relating to state subjects.

The opposition came on a day when the Union Finance Minister Pranab Mukherjee sought states' cooperation in introducing the new indirect tax system from next fiscal.

"This proposed draft Constitutional amendment bill related to GST in its present form is not acceptable to the states," Asim Dasgupta, Chairman of the Empowered Committee of State Finance Ministers on GST, told reporters after a meeting of the panel.

He said states are against infringement on their financial autonomy and have certain reservations on the draft bill's provisions for the GST Council and the GST Disputes Authority.

State financial autonomy challenged by proposed veto power for Union Finance Minister, prompting rejection of the GST amendment draft. States opposed a proposed constitutional amendment for GST because it would grant the Union Finance Minister a veto power over state subjects, which states view as infringing state financial autonomy. The Empowered Committee objected to the draft's provisions for the GST Council and the GST Disputes Authority and rejected the bill in its present form, while urging amendments to protect intergovernmental fiscal relations before cooperation on GST implementation.