Sales Tax General Order No.3 of 2022, Islamabad, 5th October 2021

SROS: Sales Tax General Order No.3 of 2022, Islamabad, 5th October 2021 Tier-1 Retailers - Integration with FBR’s POS System Government of Pakistan Revenue Division Federal Board of Revenue Inland Revenue **** C.No. 01/POS/IR/2021/159806-R Islamabad, 5th October 2021 Sales Tax General Order No.3 of 2022 Subject: Tier-1 Retailers - Integration with FBR's POS System The Finance Act, 2019 added sub-section (6) to 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%. The figure of 15% has been raised to 60% vide Finance Act, 2021. 2. In order to operationalize this important provision of law, a system-based approach has been adopted whereby all T-IRs 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 3rd August 2021. 3. Vide the instant Sales Tax General Order, a list of 1,136 identified T-1 Rs has been placed on FBRs web portal at www.fbr.gov.pk allowing them to integrate with FBR's system by 10th of October 2021 and the procedure of exclusion from this list of 1,136 identified T-IRs shall apply as laid down in Para 2 of STGO 1 of 2022 dated 03.8.2021. 4. Upon filing of Sales Tax Return for the month of September, 2021 all notified T- IRs not having yet integrated, the input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount. Salman Ahmad Khan Secretary Analysis/ POS Circulation:- (i) SA to Chairman, FBR (ii) SA to Member (IR-Operations). FBR (iii) Chief Commissioners LTOs, CTOs, MTO, RTOs (iv) Pakistan Tax Bar Association (PTBA) (v) Webmaster. FBR (HQ) for uploading Sr.No Tax Office STRN/ NTN Name of Business Owner Business Name Integration Status 1 LTO LAHORE 300850015655 Tahir Mehmood Sheikh LAHORE CENTRE Not Integrated 2 LTO LAHORE 309870839846 TOYOTA RAVI MOTORS TOYOTA RAVI MOTORS Not Integrated 3…