The Federal Board of Revenue (FBR) Issues Directive to Expedite Non-Export Sales Tax Refunds

The Federal Board of Revenue (FBR) is pushing for the quick processing of sales tax refunds in non-export sectors with multi-tax periods (carry forward-based refunds). They’ve issued instructions to Chief Commissioners of Inland Revenue to address the delays in processing these refunds.

The FBR’s instructions state that individuals seeking non-export and input tax carry-forward-based sales tax refunds must file their claims using Form-7A along with their Sales Tax Return. However, there have been issues with this process, as Form-7A is not currently enabled. This has led to difficulties for those trying to claim refunds under this rule.

To tackle this problem, the FBR is allowing individuals to file carry-forward based non-export refunds through the Retail Centres Payment System (RCPS) at tax offices in STARR or through the Expeditious Refund System (ERS) until June 2024 or until Form 7A is available online. This move is aimed at making the refund process smoother for non-export claims, which require separate scrutiny and cannot be processed alongside export-based claims through the FASTER system.

The FBR has advised field formations to receive, process, and settle these refund claims according to the law as soon as possible. This directive seeks to alleviate the challenges faced by registered individuals seeking sales tax refunds in non-export sectors, providing them with a more efficient process for obtaining the refunds they are entitled to.

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