Sales Tax Refund

Filing of Refund claim

Monthly sales tax return filed by a claimant shall be treated as a refund claim once all the supportive documents including the requisite data in the format or software has been received.

No refund claim shall be entertained if the claimant fails to furnish the claim on the prescribed software along with the supportive documents within sixty days of the filing of return.

Required supportive documents for refund claim

The refund claimant shall submit to the Refund Division of the concerned Collectorate, RTO or Large Taxpayer Unit (LTU) , as the case may be, the refund claim in computer diskette in the prescribed format or software along-with the following documents, namely:-

1. Input tax invoices or as the case may be, goods declaration for import in respect of which refund is being claimed;
2. Output tax invoices and summary of invoices for local zero rated goods.
3. Goods declaration for export (quadruplicate copy) indicating Mate Receipt number with date or airway bill or railway receipt or postal receipt besides the examination report endorsed on the reverse side thereof by the customs officers; in case of claims by persons other than manufacturer-cum-exporter of goods zero-rated in a notification issued under section 4 of the Act.
   Provided that in case of imports or exports processed through WeBOC, submission of goods declaration shall not be required and cases shall be processed by cross- matching of the declarations with the data available in the system.
4. Copy of House and Master bill of lading and airway bill or as the case may be, railway receipt in token or verification of the goods taken out of Pakistan; and
5. Statement of the tax paid inputs, in respect of which refund is claimed by the claimants other than the manufacturers of the goods zero-rated for supplies.

In addition to the documents specified above, a commercial exporter shall submit bank credit advice issued by the concerned bank and copy of the duty drawback order, if issued by the customs authorities.

Where the refund claim is filed under section 66 of the Act, the claimant shall submit an application for refund indicating his name, address, registration number, the amount of sales tax refund claimed and reasons for seeking such refund along-with following documents, namely:

1. Input tax invoices in respect of which refund is claimed;
2. Proof of payment of input tax claimed as refund; and
3. Copy of the relevant order on the basis of which refund is claimed.

The refund claimed under section 66 of the Act shall be sanctioned after verifying that no adjustment or refund of input tax has been claimed earlier and that the goods have been duly accounted for in the inventory records and the invoices claimed are validated by the CREST (Computerized Risk – Based Evaluation of Sales Tax) System.