FBR Revises Sales Tax De-registration Process

The Federal Board of Revenue (FBR) will not give any input tax adjustment or refund to the registered persons, who would apply for de-registration. The FBR has issued an SRO.608(l)/2025 to amend Sales Tax Rules 2006 to revise process of sales tax De-registration. The notification revealed that the registered person shall be barred to file Annex-C, Annex-D and the return after the date of online submission of application. No input tax adjustment or refund shall be admissible to the registered person during the currency of de-registration. And no input tax adjustment or refund shall be allowed to any other registered persons on the strength of invoices issued by such person, during the currency of de-registration. Where the Commissioner Inland Revenue desires to conduct any audit or inquiry of the applicant to determine his liability. he shall require the applicant in writing to provide the requisite records. The Commissioner on receipt of the complete requisite records and upon completion of any audit or inquiry which may have been initiated consequent upon the application of the registered person for de-registration, shall complete the proceedings or inquiry within 90 days from the date of application and direct the applicant to discharge any outstanding liability which may have been raised therein by filing a final return under section 28. On submission of final return and payment, if any entry to this effect shall be made in the computerized system which shall automatically de-register the applicant on expiry of ninety days thereof.