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What Is Sales Tax / GST?
Sales Tax, commonly referred to as General Sales Tax (GST), is an indirect value-added tax levied on the sale of goods and services in Pakistan. Obtaining a Sales Tax Registration Number (STRN) allows your business to charge tax on sales, claim input tax credits, and participate in corporate or government tenders.
Standard federal sales tax on goods is 18%, whereas provincial sales tax on services ranges from 13% to 16% depending on the province.
Mandatory Sales Tax Registration Criteria
- 1 All manufacturers, regardless of their annual turnover.
- 2 Importers and exporters of taxable goods.
- 3 Wholesalers, distributors, and retailers meeting Tier-1 POS integration criteria.
Registering for sales tax allows your B2B corporate customers to claim input tax on your invoices, increasing your market competitiveness.
FBR vs Provincial Boards (SRB/PRA)
In Pakistan, sales tax on physical goods is regulated at the federal level by FBR, while sales tax on services is administered by provincial bodies including Sindh Revenue Board (SRB), Punjab Revenue Authority (PRA), Khyber Pakhtunkhwa Revenue Authority (KPRA), and Balochistan Revenue Authority (BRA).
Application Process for STRN
Log into IRIS -> Registration -> Form 14(1) (Sales Tax Registration). Attach your business bank account maintenance certificate, tenancy agreement or ownership documents, GPS photos of business premises along with electricity meter number, and biometric verification.
Failure to file your monthly sales tax return by the 18th of each month can result in suspension or blacklisting of your STRN.
Monthly Sales Tax Returns & E-Filing
Registered sales taxpayers must file a monthly return reconciling total output tax collected against valid input tax invoices verified through the FBR Sales Tax Real-Time Invoice Verification (STRIVe) system.