Mumbai: The goods and services tax (GST), to be introduced from April 2010, could be in a weighted average in the range of 20 per cent, although it is planned to be revenue neutral, a senior government official said.

The tax structure should be such that it captures the buoyancy in the economy, K Mohandas, additional secretary (revenue) in the ministry of finance told a Ficci workshop.

While a joint working group (JWG) set up by the empowered committee of state finance ministers is preparing a strategy for GST implementation, the roadmap, rate and other regulatory issues are yet to emerge, he said.

VAT committee member secretary Satish Chandra, meanwhile, said the working group might submit its report with a framework for implementation of the new tax to the empowered committee by the end of September.

"We were given four months to prepare the framework and may be sometime in September the report will be submitted to the committee," Chandra said.

The working group, co-chaired by Chandra, may also suggest some GST rates to the committee, said official sources. The committee will then have a final consultation with the government on implementing the new GST regime by April 2010.

"April, 2010 is a feasible date for the introduction of GST, as the groundwork for movement towards GST has been laid out in a systematic manner," Chandra said.

"While the states and the central government are concerned about the revenue implications, the industry wants removal of the cascading taxation effect," he added.

The introduction of GST would require constitutional amendments to capture the spirit of Article 301 of making India a unified common market.

"Ideally, we should be prepared one year in advance... That means by 2009 the framework should be ready," he said.

He said GST would be a much better tax than all the existing taxes put together. It would be simple, transparent and efficient. It would be friendly to tax collectors and consumers, he added.