The Federal Board of Revenue (FBR) has directed field formations to expedite the processing of sales tax refunds filed by non-export sectors involving multi-tax periods (carry forward-based refunds).
In this connection, the FBR issued instructions to all Chief Commissioners of Inland Revenue on Wednesday on the issue of processing multi-tax period carry-forward-based sales tax refunds.
According to the FBR’s instructions, registered persons claiming non-export and/or input tax carry-forward-based sales tax refunds in terms of rule 34 of the Sales Tax Rules, 2006, are required to file such claims through submission of Form-7A with Sales Tax Return.
The said Form is not enabled and registered persons claiming a refund under the aforesaid rule are facing difficulties in filing of refund claim through Form STR7A.
The non-export claims require scrutiny and cannot be processed in tandem with export-based claims through FASTER. Now, therefore, in order to remove the difficulty in implementing the provisions of rules and to address refund issues faced by the registered persons, in the exercise of powers conferred under section 55 of the Sales Tax Act, 1990, the Board is pleased to allow filing of carry-forward based non-export related refunds through RCPS at tax offices in STARR or through Expeditious Refund System (ERS) up to June 2024 or till the time Form 7A is made available online.
The field formations are accordingly advised to receive, process and dispose of such refund claims as per law expeditiously, FBR added.