21/10/2022
Sales Tax General Order No. 04 of 2023
Tier-l 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-l Retailer "(T -1R)" who did not integrate its retail
outlet in the manner prescribed under sub-section (9A) of section 3 ofthe 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. I of 2022 issued on 3rd August 2021.
3. Vide the instant Sales Tax General Order, a list of 81 identified T-IRs has been
placed on FBR's web portal at w\yw.£br.gov.pk allowing them to integrate with FBR's
system by lOth of October 2022 and the procedure of exclusion from this list of85 identified
T-IRs shall apply as laid down in STGO 17 of2022 dated 13.05.2022.
4. Upon filing of Sales Tax Return for the month of October, 2022 for all hereby
notified T-IRs 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.
