ISLAMABAD: Federal Board of Revenue (FBR) on Friday identified 96 big retailers for mandatory integration with Point of Sale (POS) system.
The FBR issued Sales Tax General Order (STGO) No. 08 of 2023 through which the identified retailers were given time to integrate with the FBR online system by March 10, 2023.
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The FBR said that the Finance Act, 2019 added sub-section (6) to section 8B of the Sales Tax Act, 1990 whereby a Tier-1 Retailer, who did not integrate its retail outlet in the manner prescribed under sub-section (9A) of section 3 of the Sales Tax Act, 1990 during a tax period, its adjustable tax for that period would be reduced by 15 per cent. The figure of 15 per cent has been raised to 60 per cent vide Finance Act, 2021.
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In order to operationalize this important provision of law, a system-based approach has been adopted whereby all Tier-1 retailers who are liable to integrate but have not yet integrated, with effect from July-2021 (Sales Tax Returns filed in August, 2021) are to be dealt with as per the procedure laid down in STGO No. 1 of 2022 issued on August 3, 2021.
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Vide the instant Sales Tax General Order, a list of 96 identified Tier-1 retailers has been placed on FBR’s web portal at www.fbr.gov.pk allowing them to integrate with FBR’s system by March 10, 2023 and the procedure of exclusion from this list of 96 identified T-1Rs shall apply as laid down in STGO 17 of 2022 dated May 13, 2022.
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Upon filing of Sales Tax Return for the month of February, 2023 for all hereby notified T-1Rs not having yet integrated, their input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount.