Single GST return system: FBR, provinces likely to discuss delay soon

ISLAMABAD: The Federal Board of Revenue (FBR) and provinces are expected to sit together during the current week to resolve the issue of the delay in the implementation of the single sales tax return system by the FBR.

Sources told Business Recorder, Monday that the FBR will convene a meeting at the FBR Headquarters during the ongoing week to have the input of the provincial revenue authorities and boards on the single sales tax portal.

According to the sources, the deficiencies in the execution of the single sales tax return project have not been removed despite repeated requests from the provinces. Till now, Punjab has not implemented the said national return for sales tax registered taxpayers as per the decision of the National Tax Council (NTC).

The provincial revenue authorities/boards are also ready to discuss the critical issue of the National Sales Tax Return in the next meeting of the NTC.

The importance of a single return is evident from the fact that the provinces would have access to the data of taxpayers of other providers for cross-matching of information, building a database of service providers on a national level and checking tax frauds.

The provinces are very keen to implement the said project due to the benefits associated with it in terms of data and information about the taxpayers.

The NTC had given the deadline of August 31, 2020, for the formal launching of a single sales tax return system for the taxpayers registered with the FBR and provincial revenue authorities.

The provincial revenue authorities and boards have continued to request their taxpayers/service providers to file provincial sales tax returns. So far, the FBR has not fully implemented the National Sales Tax Return.

On January 7, 2022, former finance minister Shaukat Tarin launched the National Sales Tax Return for all federal and provincial sales taxpayers with the resolve that it would promote standardisation of taxability and tax rates and automatic input credit and refunds.

The FBR claimed that the launch of National Sales Tax Return will minimise data entry, eliminate fake/flying invoicing and will encourage harmonisation of tax procedures, definitions, and principles between the federal government and the provinces.

Taxpayers were required to file separate sales tax returns every month to each of the different collecting authorities where they conducted business, which was causing them hardship and increased compliance costs.

However, the messages of the provincial revenue authorities and boards to the service providers operating in their respective jurisdictions indicate that the FBR has yet not been able to enforce the said

single return.

Copyright Business Recorder, 2023