ERS or STARR system: Taxpayers allowed to file non-export-related GST refunds

ISLAMABAD: The Federal Board of Revenue (FBR) has allowed taxpayers to file non-export-related sales tax refunds, involving multi-tax period (carry forward based refunds), through Expeditious Refund System (ERS) or STARR system up to June 2024.

The Federal Board of Revenue (FBR) has directed field formations to expedite processing of sales tax refunds filed by non-export sectors involving multi-tax period (carry forward based refunds).

In this connection, the FBR has issued instructions to all Chief Commissioners Inland Revenue here on Wednesday on the issue of processing of multi tax period carry-forward based sales tax refunds.

Exporters detect ‘flaws’ in FBR’s new refund procedure

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

The said Form is not enabled and registered persons claiming refund under the aforesaid rule are facing difficulties in filing of refund claim through Form STR7A.

The non-export claims require scrutiny and cannot be processed in tandem with export-based claims through FASTER.

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 powers conferred under section 55 of the Sales Tax Act, 1990, the Board is pleased to allow filing of carry-forward based non-export related refunds through RCPS at tax offices in STARR or through Expeditious Refund System (ERS) up to June 2024 or till the time Form 7A is made available online, FBR maintained.

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, 2023