Sales Tax Act, 1990

Chapter- II

SCOPE AND PAYMENT OF TAX (3-13

1[8B. Adjustable input tax.- (1) Notwithstanding anything contained in this Act, in relation to a tax period, a registered person 2[***] shall not be allowed to adjust input tax in excess of ninety per cent of the output tax for that tax period:   3[Provided that the restriction on the adjustment of input tax in excess of ninety per cent of the output tax shall not apply in case of fixed assets or capital goods:]   Provided further that the Board may, by notification in the official Gazette, exclude any person or class of persons from the purview of sub-section (1) 4[:]   5[Provided also that the Board may by notification in the official Gazette, reduce or enhance the limit provided in this sub-section for any registered person on the basis of compliance or non-compliance with the production monitoring, digital invoicing, e-bility, POS, or any other electronic system prescribed by the Board for digital integration of data.]   (2) A registered person, subject to section (1), may be allowed adjustment 4[or refund] of input tax not allowed under sub-section (1) subject to the following conditions, namely:-   in the case of registered persons, whose accounts are subject to audit under the Companies Ordinance, 1984, upon furnishing a statement alongwith annual audited accounts, duly certified by the auditors, showing value additions less than the limit prescribed under sub-section (1) above; or   in case of other registered persons, subject to the conditions and restrictions as may be specified by the Board by notification in the official Gazette.   The adjustment or refund of input tax mentioned in sub-section (2), if any, shall be made on yearly basis in the second month following the end of the financial year of the registered person.  …