GST exemption: FBR to grant 'Greenfield Industry' status to industrial undertakings

ISLAMABAD: The Federal Board of Revenue (FBR) will grant status of the 'Greenfield Industry' to the industrial undertakings after seeking expert opinion of the Engineering Development Board (EDB) for allowing sales tax exemption to such companies.

The FBR has issued S.R.O. 777(I)/2020 to amend Sales Tax Rules 2006 here on Wednesday.

Through this notification, the FBR has issued a procedure for industrial undertakings seeking approval for obtaining status of "Greenfield Industry" for obtaining exemption from sales tax.

According to the new procedure, a registered person applying for approval of its industrial undertaking as "Greenfield Industry", as defined in sub-clause (12A) of section 2 and for exemption under Serial No.150 of the Table -I of Sixth schedule to the Sales Tax Act 1990, shall make an application electronically to the Commissioner Inland Revenue having jurisdiction in the form prescribed in Annexure-I along with documents prescribed in Annexure-II.

After scrutiny of the application and the documents annexed thereto, the Commissioner Inland Revenue shall, forward the application to the Engineering Development Board, for seeking its expert opinion as to whether the process or technology being employed by the said industrial undertaking is or is not already under use in Pakistan.

Upon receipt of application forwarded by Commissioner Inland Revenue, the EDB shall process the same within the time stipulated by him and communicate its expert opinion/findings, FBR said.

After completion of all the formalities, the Commissioner Inland Revenue may, through an order in writing, approve the industrial undertaking for this purpose.

Copyright Business Recorder, 2020