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GST Registration

WHAT IS GST?

GST (General Sales Tax) is a tax charged by the Central Government of Pakistan under the Sales Tax Act 1990, on the goods imported and on the sale and supply of goods and services. GST is also chargeable on representation of certain services such as hotels, marriage halls, stevedores, clubs, caterers, advertisements, custom agents, ship chandlers, courier services, slimming clinics, beauty parlors, and beauty clinics.

General Sales tax (GST) on Goods:

All goods are taxable excluding those that have been relieved under section 13 of the Sales Tax Act, 1990. For sales tax purposes goods include every kind of transportable property other than actionable claims, shares, money, stocks, and securities.

GST on Services:

The following services have been carried under the sales tax command through specific Provincial Regulations and Islamabad Capital Territory Ordinance. Any person offering the following services must register his company with the GST department and pay sales tax:
  • Services rendered by guesthouses, matrimonial halls, hotels & restaurants, cafe and caterers.
  • Advertisements on Television and Radio excluding ads: 0 Backed by a Government Organization for health or education:
    0 Public service messages if broadcast on television by World Wildlife Funds for Wildlife or UNICEF.
  • Services offered by individuals authorized to handle business on behalf of others;
    0 custom agents
    0 ship chandlers
    0 Stevedores.
    0 Carrier Services

Alongside these services, there are three more excisable services on which Federal Excise duty is collected in the form of sales tax.These are:
  • Telecommunication services:
  • Travel by air or rail (A/C, 1st class only)
  • Carriage of goods by air

Imports into Pakistan

All of the goods that are imported or traded into Pakistan are liable to sales tax at the time of import, except of those who are precisely exempted under section 13 as stated in Sixth Schedule to the Act.

EXEMPT GOODS

Under section 13 of The Sales Tax Act 1990, the Sixth Schedule precisely and unambiguously mentions name of those goods on which immunity of sales tax is offered. Other exceptions are presented in various statements (SROs) issued by the Government under section 13. A comprehensive list of such goods can be acquired from local Sales Tax Offices.

REGISTRATION

Who is to be registered?

All importers of legal goods All wholesalers and suppliers of legal goods Manufacturers who are not falling in cottage business. {Because the Cottage industry is declared as having yearly turnover underneath Rs.5 million and whose yearly utility bill (including electricity , gas and telephone) does not surpass rupees six lac}. Merchants (having worth of materials of over 50 lac rupees, in any tax period throughout the last 12 months. A person obligatory under any Provincial or Federal Law to be registered for tenacity of any duty or tax collected or paid as if it were a charge of sales tax, e.g. service providers like hostels, cafes, agents, brokers, courier services etc. Individuals making zero-rated supplies, including profitable exporter who aims to get sales tax refund against his zero rated supplies. An individual who is obligatory to be registered by virtue of said criteria, but still eludes registration, can be forcibly registered by the division, after proper investigation, under sub rule 1 of Rule 6 of Sales Tax Rules, 2006.

Procedure of GST Registration

The application for GST Registration may be submitted by e-mail on Form STR-1. It can also send through post or courier services to Central Registration Office (CRO). The Application can also be sent in the form of hard copy to Local Registration Office (LRO). The LRO after proper inspection of documents and needed editing of the application and details forwards the application to CRO by e-mail. All the columns of the Forms have to be filled properly as per directions given with the Form. Once the verification has been done, the Central Registration Office will release a GST Registration Certificate having GST registration number. CRO will also send an e-mail with same information to the Registered Person.

Where a person is to be registered?

1. A business person (listed or unlisted public company, private limited company) has to be registered under the Collectorate where the registered office of the business is located. 2. A non-corporate person is to be registered under the collectorate, where the business is truly carried on. Information to be provided for registration: Complete name of the business, company or organization Nature of the business nature (key products or services) Complete address of Head Office and all business units, warehouses and outlets Phone & fax numbers, email address, electricity and gas consumer number. Account numbers of all banks with their name and addresses.

NTN (National Tax Number)

CNIC copies of the owner, partners or directors involved in the business (passport number in case of foreigner). Registration number and date of incorporation, in case of a company. Every director or member of AOP has to fill in STR – 1 (A) Form. Date of beginning of business and opening capital employed. The approach of maintenances of business records should also be stated.

Filing Of Sales Tax Returns

A Sales Tax return is the taxpayer’s certificate of assertion through which taxpayer not only provides the particulars of transactions during a tax period but also sums his Sales Tax liability. On the return form, the taxpayer states for a specific tax period and respective input tax and output tax, at recommended amount of Sale Tax. In case input tax surpasses output tax, the sum of refund demanded or additional input tax is also stated in the return. If you want to ask any question related to getting GST Registration or want any kind of help in filing of sales tax returns, please feel to contact Evolution Business Consultants. Please feel free to contact us: Email: info@evocon.org UAN: 03000 34 12 33