FBR detects fraudulent declaration of goods in ST returns

FBR detects fraudulent declaration of goods in ST returns

ISLAMABAD: The Federal Board of Revenue (FBR) has detected that traders in supply chain fraudulently declaring goods in sales tax returns.

The FBR issued Sales Tax General Order (STGO) No. 13 of 2022 dated April 07, 2022 regarding purchases and supplies made by importers, wholesalers, dealers and distributors in sales tax return.

The Sales Tax Act, 1990 mandates a taxpayer registered with the FBR to correctly declaration of purchases and supplies in the monthly sales tax return as filed under section 26 of the Sales Tax Act, 1990.

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This essentially being a self-assessment based system warrants high standards of responsibility and integrity on part of the GST filers.

“However, the analysis of the data available in the system has led to conclude that the facilities/benefits provided through automated sales tax return are being misused by the importers, wholesalers, distributors who are engaged in business of buying and selling of same state of goods but are fraudulently declaring sales of goods irrespective of their business purchases in violation of provisions of law,” the FBR said.

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In order to ensure certainty, transparency across-the-board, it has been decided that sales of goods by importers wholesalers, Dealers and Distributors under HS Code as declared in Annex-C of the sales tax return shall be allowed on the basis of goods under the said HS Code as declared in Annex-A and Annex-B of sales tax return by these taxpayers.

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