Simplify your life and let us handle your GST and PST registration, monthly sales tax filing, and notices - so you can focus on the success of your business.
What is
GST?
GST (Goods and Services Tax) is a value-added tax applied to the supply of goods and services in Pakistan. It is designed to streamline the tax system by replacing multiple indirect taxes with a single tax. The GST system in Pakistan was implemented to enhance tax compliance, broaden the tax base, and improve revenue collection.
Key Features of
GST in Pakistan.
1. Tax Rates
The standard GST rate in Pakistan is 18% (as of 2024). For some goods and services, reduced or zero rates apply, depending on government policies.
2. Applicability
Goods: GST applies to most goods sold or manufactured in Pakistan.
Services: Certain services, like telecommunications, are also subject to GST.
Provinces have their own taxation authorities for services (e.g., Sindh Revenue Board, Punjab Revenue Authority).
3. Collection Mechanism
Businesses are required to register for GST if their annual turnover exceeds the prescribed threshold. GST is charged to the end consumer, and businesses act as intermediaries, collecting and remitting the tax to the government.
4. Zero-Rated Items
Exported goods and some items (like basic foodstuffs) are subject to a 0% GST rate, meaning no tax is charged, but businesses can claim refunds for input taxes.
Challenges with GST in Pakistan.
1. Complexity: Multiple tax collection authorities across federal and provincial levels can create confusion for businesses.
2. High Evasion Rates: A significant portion of the economy remains undocumented, leading to tax evasion and reduced revenue collection.
3. Impact on Inflation: GST increases the cost of goods and services, often passing the burden onto consumers.
4. Refund Delays: Exporters and businesses often face delays in getting refunds for input taxes.
Who Needs a
GST Number?
A GST Number is required for:
Businesses and Traders: Any individual or entity engaged in the supply of goods or services whose turnover exceeds the threshold limit set by the FBR.
Importers and Exporters: Those involved in importing or exporting goods.
Registered Service Providers: Businesses providing taxable services.
E-commerce Operators: Individuals or companies engaged in online sales.
Manufacturers: Entities producing goods for sale.
HOW TO
REGISTER A GST?
The registration process of GST has been updated. Now the individual or company has to fill up a form online. After filling the online form you have to capture the picture of your location by the support of GPRS and capture the picture of the electric meter placed on your location also by the support of GPRS.
TIME DURATION:
The time period needed to register a GST is of 30 days. 30 days is enough to register a GST, but in any case, the registration is delayed it is by the government.
Documents Required
for GST Registration in Pakistan.
Copy of the CNIC
A copy of your NTN certificate issued by the Federal Board of Revenue (FBR).
Certificate of incorporation (for companies) or Partnership deed (for partnerships).
Proof of Business Address:
Utility bills (electricity, water, gas) in the name of the business or a rental agreement.
Any official document showing the business address.
A copy of the bank statement or a letter from the bank confirming the business bank account.
A brief description of the business activities.
Details of products/services offered.
Recent financial statements or balance sheets. as per SRO 350 (I) 2024 for all sales tax registered persons.
If an agent or representative is applying on behalf of the business, a letter of authorization must be provided.
Office and Electricity Meter Pictures with GPS location.
Keep in mind that requirements may vary slightly based on the specific nature of your business or any updates in regulations. or Discretion of FBR Authority.
Sales Tax, is one of the most complex areas of tax. But it’s important that you get it right. And that’s where we come in.
Our skilled and experienced team of specialists can handle all areas of GST on your behalf, ensuring that you’re registered in the most appropriate scheme, complete your returns correctly and on time, and you’re fully compliant at all times.
Sales Tax Registration for Businesses
If your company supplies products or services, you will have to register for Sales Tax.
Registration is compulsory and Our team of specialists can take care of the registration process for you, ensuring that you are fully compliant at all times.
We’ll advise you of the best for your business, complete your registration, and complete your Sales Tax returns. At all times, we’ll ensure that Our Sales Tax services include
• FBR registration
• SRB registration
• BRA registration
• KPRA registration
• BRA registration
• Sales Tax compliance
As a Business Consultant, We focus on
producing top notch and impactful Business
experiences.
We believe what we do as a Firm is unique in every way. Our approach to customized services is unmatched by any Firm. Most of all, it’s the way we personally care about our clients. Because we believe that when your business succeeds, so will ours and that marks the making of an exceptional long-term relationship
