Supply of diesel, coal: FBR specifies conditions for allowing ST zero-rating

The Federal Board of Revenue (FBR) has specified the additional conditions for allowing facility of sales tax zero-rating on supply of diesel oil and coal by three companies to M/s Liberty Mills Limited. In this regard, the FBR has issued a sales tax general order here Friday to amend the Sales Tax General Order No 133 of 2016 dated 24th November, 2016.
According to the order, the Board has specified purchase of coal, falling under HS Code 2701.0000 and diesel oil falling under HS Code 2710.1931 of the First Schedule to the Customs Act, 1969, supplied by three registered persons to the said mill, as the goods on which sales tax shall be charged at the rate of zero per cent. This is subject to the conditions mentioned in the STGO 107/2016 dated 20.09.2016, with additions of the following:
Firstly, monthly zero-rated supply of coal and diesel oil shall not exceed the quantity mentioned. Secondly, the diesel oil and coal shall only be consumed in the manufacture of goods specified in notification No SRO 1125(1)/2011 dated 31.12.2011. Thirdly, boilers and generators for which diesel oil and coal have been purchased shall be installed at the declared manufacturing premises of registered person. Fourthly, the facility would be available for the period of twelve months (12-months) from the date of issuance of this STGO (24th November, 2016).