STARR system, ERS: Registered persons allowed to file non-export related refund claims

ISLAMABAD: The Federal Board of Revenue (FBR) has allowed registered persons to file non-export related refund claims through the STARR system at the tax offices or Expeditious Refund System (ERS) up to June 30th, 2021.

The FBR has issued instructions to the field formations here on Monday on the processing of non-export and carry-forward based sales tax refunds.

The decision has been taken to facilitate taxpayers, who are unable to obtain refunds through the speedy system of FASTER, which has limited capacity.

According to the FBR, the registered persons claiming non-export and/or input tax carry forward based sales tax refund in terms of rule 34 of the Sales Tax Rules, 2006, are required to file the claim through submission of Form-7A with the Sales Tax Return.

And whereas, the said Form is still not enabled and registered persons claiming refund under the aforesaid rule are facing difficulties in filing of refund claim through Form STR-7A.

At the same time, the Fully Automated Sales Tax e-Refund (FASTER) system lacks the capacity to replicate data of more than one tax period or process claims where there is no export.

Now, therefore, in order to remove the difficulty in implementing the provisions of rules and to address refund issues faced by the registered persons, in exercise of power conferred under Section 55 of the Sales Tax Act, 1990, the Board is pleased to allow filing of carry-forward based or non-export related refunds through the RCPS at tax offices in STARR or through Expeditious Refund System (ERS) up to June 30, 2021.

The field formations are accordingly advised to receive, process and dispose of such refund claims as per law expeditiously, the FBR added.

Copyright Business Recorder, 2021