Islamabad: The Federal Board of Revenue (FBR) on Thursday (September 8) notified 81 large Tier-1 retailers to register with the Point of Sales (POS) system to continue operations, news sources reported. The businesses have been given a deadline of September 10 (tomorrow) to comply with the order to avoid legal action.
In this respect, the FBR issued Sales Tax General Order (STGO) 3 of 2022 to all listed enterprises, directing them to implement the necessary systems and begin issuing sales tax invoices to consumers. The authorities have warned that failure to comply would result in the closure of their businesses and financial penalties. Similarly, non-integrated Tier-I merchants’ input tax claims would be rejected. According to the FBR’s announcement, a system-based approach has been established to operationalise this essential aspect of the legislation. All Tier-I merchants are obliged to be connected with the FBR. The method for exclusion from this list of designated Tier-I will be followed as outlined in STGO 17 of 2022, dated May 13, 2022.
In August, the FBR produced a list of 114 large retailers (Tier-1) who were required to connect with the FBR’s POS system or be denied a 60% input tax credit. However, the number of large merchants (Tier-1) connected with the POS system has decreased to 81.
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