‘FASTER’ system: Exporters allowed to enjoy speedy refund payment facility from Oct

ISLAMABAD: In a major development, the Federal Board of Revenue (FBR) has allowed the facility of speedy sales tax refunds to all categories of exporters within 72 hours under the “FASTER” system from October 1, 2024.

The FBR has SRO 1507 (I)/2024 to amend the Sales Tax Rules, 2006 here on Tuesday.

Earlier, the facility was only available to five leading export-oriented sectors to avail refunds through the “FASTER” system. Now, the FBR has extended the scope of “FASTER” to all exporters, which is a big development for the entire export industry.

‘FASTER’ is FBR’s fastest system for refund processing

From October 1, 2024 onwards, all exporters can enjoy speedy refund payment facility through the “FASTER”.

According to the new rules, this procedure shall apply to refund claims for the tax period from July, 2019 and onwards, as filed by the exporters of five exports oriented sectors, namely textile, carpets, leather, sports goods and surgical instruments and also apply to refund claims filed from October 1, 2024 onwards by all the exporters on account of export of goods.

Provided further that refunds of commercial exporters shall be processed on receipt of export proceeds realization certificate or bank credit advice.

The Board may direct that any refund claim or the claims as the case may be, shall be processed through “STARR system”.

The claims that do not fulfill criteria for FASTER Channel shall be processed through the Sales Tax Automated Refund Repository (STARR) system.

Another important amendment is related to the refund against goods supplied at zero-rate. The refund in respect of goods supplied at zero-rate shall be paid to the extent of input tax paid on purchases or imports that are actually consumed in such goods as supplied, the FBR added.

Copyright Business Recorder, 2024