Thursday, 1 December 2022
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FBR issues SRO to allow conditional input tax credit for supplies from AJK and GB

The Federal Board of Revenue (FBR) will allow input tax credit against electronic data of supplies by the persons registered in Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB).


The FBR has issued SRO 1064(1)/2021, here on Tuesday to amend the Sales Tax Rules, 2006.

What is new procure for claiming sales tax input tax credit against supplies from Azad Jammu and Kashmir and Gilgit Baltistan taxpayers ?

According to the new procedure, the input tax credit against invoices issued by persons registered under sales tax law of Azad Jammu and Kashmir and Gilgit-Baltistan shall be available to a buyer registered under the Act in Pakistan, if such AJK and GB registered persons are enrolled with the Board’s computerized system and are also on the active taxpayer list maintained by the AJK and GB sales tax authorities.

Undertaking required from AJK and Gilgit Baltistan taxpayers

The AJK and GB registered persons at the time of their enrolment with the Board shall furnish an undertaking that they will provide their supply record and the return filed in the AJK and the GB as and when required by the respective regional tax office (RTO), corporate tax office (CTO) or Large Tax Office (LTO), where the respective buyers are registered to ascertain correctness of their sales to Pakistani registered persons.



From such date when the AJK and GB authorities institute e-filing for their registered persons, the adjustment as aforesaid shall only be available against electronic data of supplies as provided to the Board by the AJK and the GB authorities, the FBR added.

Sales Tax input credit adjustment for azad kashmir and gilgit baltistan taxpayers SR01064
Sales Tax input credit adjustment for Azad Kashmir and Gilgit Baltistan taxpayers SR01064

Azad Jammu and Kashmir | Gilgit Baltistan | Sales Tax Input Credit Adjustment | Electronic Submission of Data | FBR | Sales Tax Returns | Inland Revenue Service |

SRO 1064 is reproduced here

S.R.0.1064(1)/2021.— In exercise of the powers conferred by section 50 of the Sales Tax Act, 1990, the Federal Board of Revenue is pleased to direct that the following further amendment shall be made in the Sales Tax Rules, 2006, namely:—
In the aforesaid Rules, for rule 161, the following shall be substituted, namely:—
“161. Input tax credit against supplies made by the persons registered in And Jammu and Kashmir and Gilgit Baltistan.—(1) The input tax credit against invoices issued by persons registered under sales tax law of Azad Jammu and Kashmir and Gilgit Baltistan shall be available to a buyer registered under the Act in Pakistan, if such AJK and GB registered persons are enrolled with the Board’s Computerized System and are also on the active taxpayer list maintained by AJK and GB sales tax authorities.
AJK and GB registered persons at the time of their enrolment with the Board shall furnish an undertaking that they will provide their supply record and the return filed in AJK and GB as and when required by the respective RTO, CTO or LTO, where the respective buyers are registered to ascertain correctness of
their sales to Pakistani registered persons. From such date when the AJK and GB authorities institute e-filing for their registered persons, the adjustment as aforesaid shall only be available against electronic data of supplies as provided to the Board by AJK and GB authorities.”.

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