ISLAMABAD: The Federal Board of Revenue has directed Point of sales (POS) to integrate with the system by September 10, 2021.
The tax department has issued Sales Tax General Order No.2 of 2022 with the subject “Tier-I Retailers, Integration with FBR’s POS System”.
The Finance Act, 2019 added sub-section (6) in section 8B of the Sales Tax Act, 1990 (“the STA, 1990”) whereby a Tier-1 Retailer “(T-1R)” who did not integrate its retail outlet in the manner prescribed under sub-section (9A) of section 3 of the STA, 1990 during a tax period, its adjustable tax for that period would be reduced by 15 per cent.
The figure of 15pc has been raised to 60pc vide Finance Act, 2021. To operationalize this important provision of law, a system-based approach has been adopted whereby all T-1Rs liable to be integrated but not 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 3rd August 2021.
A list of 977 identified T- IRs has been placed on FBR’s web portal allowing them to integrate with the FBR system by 10 of September 2021 and the procedure of exclusion from the list of 977 identified T-1Rs shall apply as laid down in Para 2 of STGO 1 of 2022 dated 03.8.2021.
Upon the filing of Sales Tax Return for August 2021 by all notified T1Rs not integrated, the input tax claimed would be disallowed without any further notice or proceedings, creating tax demand by the same amount.
