Question 1

What is the standard General Sales Tax (GST) rate in Pakistan?

Accepted Answer

The standard federal sales tax rate in Pakistan under the Sales Tax Act 1990 is 18% on taxable supplies of goods.

Question 2

What is the difference between federal sales tax and provincial sales tax in Pakistan?

Accepted Answer

Federal FBR levies sales tax on goods (18%), whereas provincial revenue authorities (PRA in Punjab, SRB in Sindh, KPRA in Khyber Pakhtunkhwa, and BRA in Balochistan) levy sales tax on services (usually 13% to 16%).

Question 3

What is Input Tax Credit under FBR rules?

Accepted Answer

Input tax is the GST paid by a registered person on purchases and raw materials, which can be credited against the output tax collected on sales to compute net payable tax.

Question 4

What is Further Tax under Section 3(1A)?

Accepted Answer

A Further Tax (typically 3% to 4%) is charged on taxable supplies made to unregistered persons who have not obtained a Sales Tax Registration Number (STRN).

Question 5

When must monthly sales tax returns (Annexure C & Form STR-7) be submitted?

Accepted Answer

Sales tax returns must be filed electronically on FBR IRIS portal by the 18th of each month, with the payment due by the 15th.

Value of Taxable Goods / Services	Rs 200,000.00
Sales Tax Rate Applied	18.0%
Output Sales Tax Payable	Rs 36,000.00
Total Gross Invoice Value	Rs 236,000.00
Input Tax Adjusted (Section 7)	-Rs 12,000.00
Net Tax Remittance to Authority	Rs 24,000.00

Pakistan Sales Tax (GST) & Provincial Service Tax Calculator

Invoice Value & Tax Authority

Sales Tax Invoice Statement

Sales Tax Invoice (FBR Sales Tax Return)

Engr. Muhammad Shahzad