Big retailers must get integrated by 15th: FBR

Islamabad: The Federal Board of Revenue (FBR) Monday directed the big retailers (Tier-1) to get integrated positively by September 15, 2021 to avoid denial of 60 percent input tax credit. The FBR has issued Sales Tax General Order No2 of 2021, here on Monday.

The FBR in its drive to integrate Tier-1 retailers across the country has issued Sales Tax General Order No.2 of 2022 by which a system-based approach has been adopted to integrate non-Integrated Tier-1 Retailers with effect from 1st August 2021.

FBR to disallow 60pc input tax of identified non-integrated Tier-1 retailers

A list of identified Tier-1 non-Integrated Retailers has been placed at the FBR's web portal. If these identified Tier-1 Retailers fail to integrate by September 15, 2021, they would be denied credit for input tax equal to 60 percent claimed in the sales tax return for the month of August 2021.

Tier-1 retailers’ invoices: FBR specifies utilisation of Re1 service charge

If, however, a Tier-1 retailer feels that it is not a Tier-1 retailer in terms of Section 2(43A) of Sales Tax Act, 1990, it may get itself excluded from the list by applying to the concerned Commissioner by September 10, 2021. The list shall be updated every month and taxpayers who remain in the list shall be considered as non-Integrated Tier-1 Retailers and their input tax to the extent of 60 percent shall be disallowed as per the provisions of sub-section (9A) of Section 3 of the Sales Tax Act, 1990.

Copyright Business Recorder, 2021