Islamabad: The Federal Board of Revenue (FBR) has instructed its field offices to expedite the processing of sales tax refunds, a news source reported on October 18. The FBR issued directives to all Chief Commissioners of Inland Revenue. These directives pertain to the handling of sales tax refunds that span multiple tax periods and are based on carry-forward balances.
According to the FBR’s instructions, individuals, or entities eligible for non-export and/or input tax carry-forward-based sales tax refunds under Rule 34 of the Sales Tax Rules, 2006, should file their claims by submitting Form-7A along with their Sales Tax Return.
However, Form-7A has not been enabled, causing difficulties for registered persons seeking refunds under this rule. Notably, non-export-related refund claims require thorough examination and cannot be processed alongside export-related claims using the FASTER system.
In light of these challenges and to facilitate the implementation of rules while addressing the refund issues faced by registered individuals or entities, the FBR, in the exercise of its powers under section 55 of the Sales Tax Act, 1990, has permitted the filing of carry-forward-based non-export-related refunds through RCPS at tax offices within STARR or through the Expeditious Refund System (ERS) until June 2024 or until Form 7A becomes available online.
Field formations have been advised to receive, process, and promptly resolve such refund claims in accordance with the law.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
