Finished fabric, textile and leather products: New procedure notified for suppliers to avail lower GST rate

The Federal Board of Revenue (FBR) has notified new procedure for suppliers of finished fabric, textile and leather products for availing online lower rate of sales tax. The FBR has issued SRO 1360 to amend sales tax rules 2006 here on Tuesday. The rules shall apply to supplies of finished fabric and locally manufactured finished articles of textile and textile made-ups and artificial leather under SRO 1125(I)/2011, as are made by the reregistered persons who are integrated with Board's online system for the purpose of availing lower rate on supplies.
According to the rules, the local manufacturers will have to install fiscal electronic device and software available on the FBR website with complete technical instructions for installation, configuration and integration.
The integrated supplier will also notify to the FBR all their outlets from which they intend to sell the suppliers subject to lower rate.
All the sales and transactions made from the notified outlet will be communicated to the FBR's computerised system and the sales data so transferred shall be accommodated in Annex-C or other relevant Annex of the monthly sales tax-cum-federal excise return.
No sale or supply from the notified outlets shall be made without being recorded by the duly accredited electronic fiscal device (EFD), which means a system composed of one Sale Data Controller (SDC) and at least one Point of Sale (POS) connected together, that has the specified characteristics and requirements, the FBR added.
If an integrated supplier registered with the computerised system as stipulated in this rule is found to have not fulfilled any of the conditions specified herein or fails to integrate with the computerised system as stipulated in rule 150ZEB after the expiry of period of one month, he shall be liable to pay sales tax at the applicable rate of 9% on the goods specified with effect from the July 1, 2018, the FBR said.
About the consequences of non-compliance or contravention, the FBR has warned that integrated supplier who is found to have tampered with the system or made sales otherwise than the prescribed devices or who contravenes any of the provisions of this chapter, shall no more be eligible for the reduced rate and an appealable order to this effect shall be made by the officer in-charge of the unit after giving an opportunity of being heard, besides any penal or recovery action that may be taken under the Act.