GST zero-rating: huge number of applications pending with field formations

The Federal Board of Revenue (FBR) has appeared feckless to entertain immense number of applications of the registered persons, seeking to get approval for availing zero-rating of sales tax, creating serious financial difficulties for the business community; it is learnt. According to sources, the board has declared the submission of verification reports from field formation mandatory against the applications submitted by the registered persons for availing the same, following the misuse of this zero-rated facility.
Moreover sources said that after the said mandatory requirement for availing zero-rated facility, enormous number of applications was reportedly pending with field formation for verification for months, leaving business community in serious financial crunch. When contacted, officials in tax department, who did not want to be named, confirmed that there was huge pendency of applications submitted by registered persons for zero-rating facility where either the mandatory verification reports have not been furnished to the board or the discrepancies have not been resolved.
Replying to a question, the officials from tax office said that FBR through its written communication directed the field formation to expedite the process of verification/resolution of discrepancies and submit the reports with express recommendations in all the pending cases to the board so that cases could be finalized as per law.
They further said that the board had also ordered the field formation to submit a consolidated report of all applications of the registered persons pending with RTOs/LTUs for grant of zero-rating on purchase of electricity/gas/coal/diesel oil and furnace oil along with the reason for delay in processing of these applications and hoped that the issue regarding the permission to avail zero-rating facility on sales tax would be resolved in near future.