Sales tax returns: FBR introduces e-scrutiny mechanism

ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a mechanism for electronic scrutiny of sales tax returns and online intimation of discrepancies detected through its computerised system.

Through S.R.O. 1655 (I)/ 2026 issued by the FBR on Saturday, the FBR amended the Sales Tax Rules, 2006 by inserting a new Chapter XII-A titled “Procedure for Electronic Scrutiny and Intimation of Issues Detected by the Computerised System.”

Under the new procedure, the computerised system may issue online advice or advance intimation through IRIS, identifying factual or legal mistakes and discrepancies and providing registered persons an opportunity to clarify the issues, rectify errors or take corrective action before initiation of legal or penal proceedings.

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The advance intimation may also be issued by the Officer of Inland Revenue having jurisdiction over the registered person. The registered person will be given at least seven days to respond, rectify discrepancies or take other corrective action.

In case of no response within the prescribed period, a reminder will be issued, with the response period again being not less than seven days.

The new chapter will apply to automated scrutiny, analysis and cross-matching of sales tax returns and other available data relating to registered persons through the computerized system implemented by the FBR.

The record of discrepancies detected, intimations issued and responses received will be communicated to the concerned Inland Revenue officer and maintained on the system dashboard.

The automated scrutiny and electronic communication process will be implemented through Change Request Forms (CRF).

The concerned Inland Revenue officer will examine the taxpayer’s response and take appropriate action, where required, under the relevant provisions of the Sales Tax Act, 1990 and rules made there under.

Copyright Business Recorder, 2026