Sales Tax-GST/SST Registration & Filing Service in Karachi
Updated on 08 January 2025
Sales Tax-GST/SST Registration and Filing Services in Karachi-A Comprehensive Guide
A complete guide about GST/SST-Sales Tax Registration, Return Filing & Refund is being provided for the information of our clients and other Taxpayers. Our tax lawyers and consultants offer informative services for sales tax (GST) registration and monthly return filings in Karachi, Islamabad, Rawalpindi, Lahore, and other cities of Pakistan.
History of Sales Tax (GST) in Pakistan
Evolution of Sales Tax in Pakistan: From Provincial Levy to Federal Tax Authority
Sales Tax was a provincial matter when Pakistan was founded. In Punjab & Sindh, the levy was administered as a provincial levy. General Sales Tax Act, 1948 was enacted in 1948, establishing sales tax as a federal tax, and in 1952, the Central Government permanently acquired this Tax. Every time a sale was made, sales tax was charged at the standard rate of six pies per rupee. Sales Tax Act 1951 was enacted as a result of protests by the trading community against this system.
Development of Sales Tax Collection System in Pakistan: Key Amendments and Practices
The government established a system in which approved manufacturers and wholesalers were allowed to purchase goods from one another without payment of sales taxes and to pay tax on sales to unlicensed traders. Licensees were allowed to import goods without paying Sales Tax, while imports were subject to Sales Tax. In time, sales tax started being charged at the time of sales and imports of locally produced & imported goods. The Central Excise Department has also been provided with the power to collect tax on non-excisable items in accordance with a 1981 amendment in the Sales Tax Act, of 1951.
Transition from Sales Tax to Value Added Tax: The Evolution of Taxation in Pakistan
After the advent of the Value Added Tax in the early 1980s, the government decided to replace Sales Tax with VAT in the framework of its structural adjustment program, which aimed at correcting anomalous and distorting aspects of the Sales tax and non-tax policies. As a result, the Sales Tax Act of 1951 was repealed by the Sales Tax Act of 1990.
What is GST (General Sales Tax) in Pakistan
The General Sales Tax (GST) is an indirect tax levied on the supply of goods and services in Pakistan. Administered by the Federal Board of Revenue (FBR), GST plays a crucial role in the country’s taxation framework. Businesses operating in Pakistan must comply with GST regulations to avoid penalties and ensure smooth operations. TAXOCRATE (Pvt) Limited, a leading taxation law firm in Karachi, specializes in GST registration and monthly sales tax return filing services, offering unparalleled expertise to businesses of all sizes.
Sales Tax Liabilities
The following sectors require Sales Tax Registration and Monthly Return Filing:
- Â Â Manufacturing
- Â Â Import
- Â Â Services
- Â Â Distribution, Wholesale & Retail stage.
The Sales Tax had previously been applied to manufacturing & import, and it has now been extended to the remaining sectors. It applies to goods produced and imported into Pakistan with the exception of the computers, software, poultry feed, medicines, and unprocessed agricultural produce of Pakistan, as well as items listed in Section 6 of the Sales Tax Act, 1990.
Understanding the Federal Board of Revenue (FBR) and Its Role in GST
The FBR is Pakistan’s apex taxation authority responsible for enforcing tax laws and collecting revenue. It oversees GST implementation, ensuring compliance across businesses. The FBR has made the GST registration and filing process digital, simplifying procedures for businesses while maintaining strict compliance standards.
Sales Tax (GST) Registration in Pakistan
The Sales Tax Act requires that everyone who makes a taxable supply in Pakistan, including those in the sectors mentioned above, register with the FBR. Companies with annual revenues below five million rupees. Retailers having a total turnover under Rs. Five million for the last twelve months can claim the sales tax exemption.
Taxes on supplies are based on 17% of the price. Depending on the item being supplied, taxes must be applied at 18.5% or 21% (see SRO 644(I)/2007 as amended by SRO 537(I)/2008 dated 11th June 2008).
Persons liable to be registered under the Sales Tax Act are required to submit the Registration Form(s) to the Registration Office, FBR, or local sales tax collectors/ RTOs for the allocation of a Registration Number. An online Certificate of Registration is then issued to the taxpayer.
Why GST Registration is Essential
GST registration is mandatory for businesses whose annual turnover exceeds the prescribed threshold set by the FBR. It allows businesses to:
Legally collect and remit GST to the government.
Claim input tax credits on purchases.
Build credibility and trust with customers and partners.
Required Documents for GST Registration
To register for GST, businesses must provide the following documents:
CNIC of the Business Owner or Authorized Representative: Identification proof to verify ownership or representation.
Business Bank Account Details: A bank account registered under the business name.
NTN (National Tax Number): Issued by the FBR to businesses and individuals for tax purposes.
Proof of Business Premises: Lease agreement, utility bills, or ownership documents.
Business Activity Details: Description of the goods or services offered by the business.
Sales Invoices and Purchase Receipts: Documentation of financial transactions.
At TAXOCRATE, our team assists clients in compiling and submitting these documents to the FBR, ensuring a hassle-free GST registration process.
Monthly Sales Tax (GST) Return Filing
GST registered persons are required to file a monthly return for sales made during the previous month by the 18th of the month.
The FBR’s e-portal requires electronically filed Sales tax returns from all registered persons and companies. The payment must be made by the 15th and the return submitted by the 18th.
The Sales Tax General Order No. 04 of 2007 provides detailed instructions on this subject. There are segments that need to file quarterly (tri-monthly) returns, such as certain retailers, CNG dealers, dealers of specified electric goods, etc.
Our Monthly Sales Tax Return Filing Services in Karachi
Once registered, businesses are required to file monthly sales tax returns with the FBR. This process involves:
Recording Sales and Purchases: Maintaining accurate records of all taxable transactions.
Calculating Output Tax and Input Tax: Determining the GST payable or refundable.
Submitting Returns via IRIS: Using the FBR’s online portal for filing returns.
TAXOCRATE’s expert accountants at its Karachi office, handle every aspect of the filing process, ensuring:
Accurate preparation of sales tax returns.
Timely submission to avoid penalties.
Claiming applicable refunds for input taxes.
Benefits of Choosing TAXOCRATE for GST Registration and Monthly Filing Services
Expert Guidance: Our team of seasoned tax professionals stays updated with the latest GST laws and FBR regulations.
End-to-End Support: From registration to monthly return filing, we manage every aspect of your GST compliance.
Time and Cost Efficiency: Save time and resources while we handle your taxation needs.
Customized Solutions: Tailored services to meet the unique requirements of your business.
Transparent Communication: Regular updates on your GST status and clear explanations of tax calculations.
The Impact of GST Compliance on Businesses
Proper GST compliance not only ensures legal operations but also enhances a business’s market reputation. Non-compliance can lead to penalties, audits, and even suspension of business activities. With TAXOCRATE’s professional GST services, you can focus on your core operations while we handle your tax obligations.
Pakistan Sales Tax (GST) Rates
| Related | Last | Previous | Unit | Reference |
|---|---|---|---|---|
| Corporate Tax Rate | 29.00 | 29.00 | Percent | Dec 2024 |
| Personal Income Tax Rate | 35.00 | 35.00 | Percent | Dec 2024 |
| Sales Tax Rate | 18.00 | 17.00 | Percent | Dec 2024 |
Pakistan Sales Tax (GST) Rates
| Â | Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | Â |
|---|---|---|---|---|---|---|---|---|
| Â | 18.00 | 17.00 | 18.00 | 15.00 | 2006 – 2024 | percent | Yearly | Â |
Sales Tax Lawyers and Senior Tax Consultants Offer GST Registration and Monthly Filing Services
Our Tax Lawyers and Senior Consultants keep our clients up to date with the latest developments and new regulations concerning sales tax matters in Pakistan. Tax laws and reforms are so complex these days that ensuring you do not incur any serious penalties or business losses is extremely difficult. Our professional GST tax consultants in Karachi will guide you about the taxation system, get yourself registered with the sales tax department, and will take the responsibility for documenting your periodic tax returns.
Our services include GST registration, GST returns, and of course, GST refunds, as well. We offer the best sales tax consulting services in Karachi and Islamabad, so contact us now for further guidance.
Why Choose TAXOCRATE (Pvt) Limited for Your GST Registration and Monthly Filings?
TAXOCRATE has been a trusted name in taxation law services since 1985. With offices in Karachi, Lahore, Islamabad, and Rawalpindi, we are well-equipped to serve clients nationwide. Our expertise spans a range of taxation and corporate law services, making us the ideal partner for businesses seeking reliable GST registration and filing solutions.
TAXOCRATE MAKES GST REGISTRATION AND FILING CHALLENGES, SIMPLE
Navigating the complexities of GST registration and filing can be challenging, but TAXOCRATE (Pvt) Limited makes it simple and efficient. With our comprehensive services, businesses in Karachi and beyond can ensure compliance with FBR regulations, avoid penalties, and focus on growth. Contact us today to learn how our GST services can benefit your business.
GST-FBR & SST-SRB Sales Tax Registration, and Filing Experts in Karachi, Islamabad & Lahore
Maintenance of Sales Record
The business premises of all registered persons must maintain records of all goods purchased and supplied by them. A five-year period is required for the keeping of all records.
If In the event that a registered person fails to pay the tax within the specified time, claims a tax credit or refund that is not admissible to him, or applies the zero percent rate incorrectly, a tad will be charged at the following rates:
An amount equal to one-half percent of the tax due or a part thereof each month;
The rate of additional tax in cases of tax fraud, however, is two percent per month.
Sales Tax Arrears
In the following situations, work on arrears is initiated:
- Â Â Not submitting the returns on time
- Â Â The tax amount paid is less than the tax amount owing
- Â Â Following an audit or scrutiny, a request is upheld after adjudication
GST (Sales Tax) Refund Matters
The excess input tax is refunded to the taxpayer within 45 days when an individual’s input tax exceeds their output tax because of exports, etc. The Board can determine the refund procedure for excess input tax in all other cases.Â
SST-Sindh Sales Tax on Services By SRB
Sales taxes on services (SST) were collected by FBR at 17% for the year 2010-11, which resulted in FBR collecting and transferring Rs. 18.28 billion. Under the Sindh Sales Tax on Services Act, 2011, SRB was given the responsibility of administering, levying, and collecting the sales tax for the 2011-12 fiscal year, reducing the standard rate from 17% to 16%.Â
Filing of Sindh Sales Tax (SST) Return with the Sindh Revenue Board (SRB)
The Sindh Sales Tax (SST) is a tax levied on services provided or rendered within the province of Sindh, administered by the Sindh Revenue Board (SRB). Businesses offering taxable services in Sindh are required to register with the SRB and file regular SST returns to comply with provincial tax regulations. Filing SST returns ensures proper tax compliance and avoids penalties.
Step-by-Step Guide to Filing SST Returns with SRB
Registration with SRB
To file SST returns, businesses must first register with the SRB. This process involves:- Submitting business details, such as name, address, and service type.
- Providing supporting documents, including CNIC, proof of business premises, and bank account details.
Once registered, businesses are assigned an SRB registration number to use for all tax-related activities.
Log into SRB Online Portal
Visit the official SRB portal and log in using your credentials (SRB registration number and password). The portal provides access to all tax-related information, including filing returns, tax payment history, and compliance status.Access the Return Filing Section
After logging in, navigate to the “Taxpayer Services” section and select “File Return.” The system will display the relevant SST return form for the applicable tax period.Enter Taxable Service Details
- Input details of taxable services provided during the tax period.
- Specify the total value of services and calculate the tax payable at the prescribed SST rate (currently 13% for most services in Sindh).
- Include exempt services, if applicable, and claim input tax adjustments for services on which SST has already been paid.
Calculate Tax Liability
The system will automatically calculate the net tax liability after considering adjustments and exemptions. Verify the computed tax to ensure accuracy.Attach Supporting Documents
Upload required supporting documents, such as:- Tax invoices issued to clients.
- Evidence of input tax credits, if claimed.
- Other relevant documentation as per SRB\u2019s requirements.
Submit the Return
Review all entered information and ensure accuracy before submission. Once verified, submit the return through the portal. The system will generate an acknowledgment receipt upon successful submission.Payment of Tax
- Generate a payment challan (PSID) through the SRB portal.
- Pay the tax through designated banks or online payment options provided by SRB.
- Update the payment details on the portal to complete the filing process.
Confirmation and Record Keeping
After filing the return and making the payment, ensure that you download and retain a copy of the filed return and payment receipt for your records. These documents are essential for audits and future reference.
Key Points to Note
- Filing Deadline: SST returns must be filed monthly, typically by the 18th of the following month. Late filing may result in penalties and surcharges.
- Input Tax Adjustment: Businesses can claim input tax credits for SST paid on services utilized in their operations, provided they meet the conditions specified by SRB.
- Audit and Compliance: Ensure accurate record-keeping and compliance with SRB regulations to avoid audits and penalties.
Why Choose TAXOCRATE (Pvt) Limited for SST Filing?
TAXOCRATE\u2019s expert tax consultants provide end-to-end support for SST return filing. Our services include:
- Registration with SRB.
- Preparing and filing accurate SST returns.
- Calculating tax liabilities and input tax adjustments.
- Ensuring timely payment to avoid penalties.
- Managing audits and compliance requirements.
By outsourcing your SST filing to TAXOCRATE, you can focus on your core business operations while ensuring seamless tax compliance with the SRB. Contact us today to simplify your Sindh Sales Tax filing process!
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