FBR to process sales tax returns more quickly

Islamabad: According to a news source on October 18, the Federal Board of Revenue (FBR) has directed its field offices to speed up the processing of sales tax refunds. To all Chief Commissioners of Inland Revenue, the FBR issued instructions. These instructions deal with managing sales tax refunds based on carry-forward balances that span numerous tax periods.

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Individuals or companies that qualify for non-export and/or input tax carry-forward based sales tax refunds under Rule 34 of the Sales Tax Rules, 2006 are required to file their claims by submitting Form-7A together with their Sales Tax Return, according to the FBR’s instructions.

The inability of Form-7A, however, makes it impossible for registered individuals seeking reimbursements under this provision. Notably, the FASTER system cannot be used to process refund claims that aren’t related to exports because they need to be thoroughly examined beforehand.

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The FBR has granted permission to file carry-forward-based non-export-related refunds through RCPS at tax offices located within STARR or through the Expeditious Refund System (ERS) until June 2024 or until Form 7A is made accessible online in light of these difficulties and to facilitate the implementation of regulations while addressing the refund issues faced by registered individuals or entities. This permission is being granted in accordance with the authority granted to the FBR under section 55 of the Sales Tax Act, 1990.

Field formations have been instructed to accept, handle and legally and immediately resolve such refund claims.