fbr income tax return filing

Pakistan Tax

FBR Sales Tax (GST) Return Filing

FBR-Sales Tax (GST) Return Filing

FBR-Sales Tax (GST) Return Filing is the specialty of our Tax Lawyers. In a Sales Tax (GST) return, the taxpayer discloses the transactions he or she carried out during the tax year, as well as his Sales Tax liability. For each tax period, the taxpayer declares input tax and output tax at the prescribed rate of Sale Tax on the return form. The amount of excess input tax or the refund claimed is also stated in the return if the input tax is greater than the output tax. Depending on the category of taxpayer, monthly, quarterly, or annual returns may be filed as follows:-

NTN Number Registration From FBR

1. Monthly FBR-Sales Tax (GST) Return

According to the standard procedure, a registered person must file a monthly return by the 15th day of the month following the period in question in which the supplies were made, in the designated branches of the National Bank of Pakistan. It has devised a procedure to file quarterly and monthly returns for specific categories as outlined below.

2. Quarterly Return

The taxpayers in this category fall exclusively into the commercial importer category, i.e., the importer who imports taxable goods for activities other than industrial use or for their own manufacture is required to file the return on a quarterly basis.

3. Annual Return

The 30th of September is the deadline for a private or public Limited Company to file its annual Sales Tax return.

E-Filing of FBR-Sales Tax (GST) Return

The following categories of registered persons are also able to file sales tax returns electronically.

a). Individuals registered in the Large Taxpayers Units of Karachi and Lahore.

b). Any private or public company registered in any Sales Tax Collectorate. 

c). There are other taxpayers who may wish to file sales tax returns electronically.

E-filing procedures are outlined in the Sales Tax General Order No.4/2007. A registered person shall obtain a unique identifier and password from the FBR’s web portal at e.fbr.gov.pk. A person may select the sales tax declaration from the portal and then file the return. The return data shall be filled in a web form and transmitted directly to FBR’s server.

Contact Us for Sales Tax (GST) Filing

Slabs of FBR-Sales Tax (GST)

The three different slabs of 15%, 17.5%, and 20% have been maintained. Seventy items mentioned in Table-1 of the SRO 466(1)/2007 dated 27-06-2007 are subject to sales tax at a rate of 20%, while seven items mentioned in Table-2 of the same SRO Notification are subject to sales tax at a rate of 17.5%. All other goods and services are taxed at a rate of 15% unless they are exempt from tax under the sixth schedule of the Sales Tax Act, 1990.

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Record of E-Filing of FBR-Sales Tax (GST)

On-demand, the officer-in-charge shall produce the electronic sales tax return and any attached documents, if any, that pertain to it, in the electronic record of the registered person. The penalty is Rs.5000/= if the delay exceeds 15 days. A late return is liable to a penalty of Rs 100/- per day if it is not filed within 15 days after the end of the relevant tax period. The additional tax will also be charged at that rate if the return is not filed on time. Any unpaid balance will be subject to additional tax and penalty if not paid in full. In the event of two consecutive months of failure to pay the correct amount of tax, a registered person is deemed to have committed tax fraud, for which a penalty of Rs. 10,000 or five percent of the amount of tax involved, whichever is higher, as well as prosecution, will apply.

Zero Rating Sales Tax (GST)

The effect of tax paid on zero-rated sales tax (GST) on prescribed goods is offset by allowing a refund or input adjustment equal to the tax already paid. Tax exemption differs from zero-rating in that there is no tax payable on the exempt goods, while for zero-rated goods, not only is there no sales tax payable on supply, but there is also a refund or input tax adjustment of tax already paid. In the category of zero-rated goods are the following products: 

(a) All exports are zero-rated (except those made by road to Afghanistan). 

(b) You can find other zero-rated supplies in sections 4 and 5 of the Sales Tax Act, 1990, such as those to diplomats, privileged persons, and privileged organizations, raw materials to Export Processing Zones.

(c) Supplies procured through international tenders.

Those who make both zero-rated supplies and taxable supplies or provide taxable services will only be charged sales tax on taxable supplies and services.

FBR-Sales Tax on Services

FBR also collects Sales Tax (GST) on Services in the federal capital, Islamabad and other federal administrated areas. In the provinces of Punjab, Sindh, KPK, and Balochistan, the Sales Tax on services is collected by the provincial Sales Tax authorities.

Value of Supply

The term ‘value’ is used for sales tax (GST) purposes to describe the value on which sales tax is calculated. If the goods or services are provided locally, the value is based on the total price of the goods or services excluding any sales tax. Sales tax law allows for normal trade discounts. 

In the case of imported goods, the value is the amount of customs duty and federal excise duty determined under the Customs Act, 1969. According to the Third Schedule of the Sales tax Act 1990, the retail price of a product determines the value of the supply of goods. Cigarettes, ice cream, aerated water and beverages, and fruit and vegetable juices are among the products.

Imported Goods

The time when sales tax is applicable for the imported goods is the time of importation i.e. filing of bill of entry or customs declaration. Sales tax on imported goods is collected in the same manner and at the same time as if it were customs duties on imported goods.

Sales Tax Invoice

A registered person is required to submit a sales tax invoice for all taxable supplies according to section 23 of the Sales Tax Act, 1990. Among the information that should appear on the tax invoice is the following;

  • A serial number
  • Name, address & registration number of the supplier; 
  • Name, address & registration number of the buyer; 
  • Date of issue of invoice; 
  • Description/quantity of goods; 
  • Value, exclusive of sales tax
  • Amount of sales tax; 
  • The rate of discount, if offered; 
  • Value inclusive of sales tax.