Buyers and sellers: FBR to give specific reasons for blocking STRNs

The Federal Board of Revenue (FBR) has decided to give specific reason for blocking sales tax registration numbers (STRNs) of buyers and sellers of registered persons along with quantum of share of unlawful input tax adjustment to the field formations to avoid blocking of STRNs of the genuine buyers/sellers engaged in documented business transactions.
In this connection, the FBR has issued instructions to the Large Taxpayer Units (LTUs) or Regional Tax Offices (RTOs) on blocking of STRNs of buyers and sellers of registered persons. The FBR has issued instructions to avoid blockage of the STRNs of the genuine businessmen who have nothing to do with the unlawful input tax adjustment, sources added.
According to the FBR's instructions, instances have been brought to the notice of the Board where buyers and sellers of registered persons are blocked on account of unlawful input tax adjustment, however, the names of such blocked buyers/ sellers are not intimated timely to the LTU/ RTO's in whose jurisdiction the units of these buyers/ sellers fall, which created hardships for genuine units.
It is, accordingly, directed that specific reasons for blocking of such units along with quantum of share of unlawful input tax adjustment from the summary invoice data as obtained from the system also be intimated immediately to the concerned LTU / RTO, so that necessary proceedings under the Sates Tax Act, 1990 can be initiated.
It is requested that the above mentioned instructions be circulated to the offices working under your administrative control. Receipt of these instructions may also be sent to the Board, FBR's instructions added.