Pakistani GST registration

Under Pakistani law, there is no universal “turnover only” threshold that automatically exempts all businesses from sales tax (GST) registration. For many categories (manufacturers, importers, wholesalers, distributors, large retailers), registration is mandatory regardless of turnover

Some small businesses — e.g. “cottage industry” manufacturers or small retailers — may be exempt from mandatory registration if they meet specific criteria (turnover below a certain level, low utility bills, noncommercial scale). 

In addition, any importer, wholesaler/distributor, large retailer (“Tier1” retailer), exporter, or business supplying taxable goods/services under provincial/federal laws must register. 

Foreign or domestic businesses may need to register for GST/sales tax in Pakistan if they engage in the following activities: 

• Importing goods into Pakistan 
  
• Manufacturing taxable goods within Pakistan (unless exempt as small “cottage industry” under criteria) 
  
• Wholesaling or distributing taxable goods (supplying goods to other businesses for further sale) 
  
• Retailing — especially “Tier1” retailers, such as chain store retailers, retailers in large shopping malls/plazas, or retailers with significant electricity usage or certain payment/POS infrastructure 
  
• Exporting goods: exporters who want to claim refunds on zero-rated supplies 
  
• In many cases, service providers — depending on province and type of service — may also be liable under provincial sales tax laws if they supply taxable services 

Persons who need to register must submit an application to the FBR (or relevant provincial authority for services). Typically required information/documentation includes: 

• National Tax Number (NTN) or equivalent identifier 
  
• Business name and legal structure (company, partnership, sole proprietor, etc.) 
  
• Address of business premises (or proof of place of business) — lease/rent agreement or ownership deed, utility bills, or other verification 
  
• Bank account information 
  
• For manufacturers/distributors: details of premises, machinery/equipment (if applicable), and list of goods supplied 
  
• For wholesalers/distributors/dealers: copies of distributorship/dealership certificates (if applicable) 
  
• For exporters: additional declarations if intending to claim input tax refunds 
  

Once registered, the business is issued a Sales Tax Registration Number (STRN) which must be shown on invoices and used when filing returns. 

• Structure: The STRN is typically based on the business’s National Tax Number (NTN), and in many cases, uses the same 7-digit number as the NTN. However, the STRN may include additional identifiers (such as branch codes) depending on the taxpayer. Because of the potential for additional identifiers, there is no single fixed length or standardized format for an STRN. 
• Issued by: The Federal Board of Revenue (FBR) via its online IRIS portal or provincial revenue authorities for services (e.g., Punjab Revenue Authority for PRA-registered service providers). 
• Usage: 
  • Must appear on all tax invoices, returns, and official communications. 
  • Used for verifying registration status and filing GST returns. 
  • Enables businesses to claim input tax credits and appear in active taxpayer lists (ATL). 
• Verification: STRNs can be verified on the FBR’s Active Taxpayer List (ATL) or through the FBR Taxpayer Verification Portal.

Registered businesses must issue tax invoices for taxable supplies, showing the STRN, supplier and buyer details, description/value of goods/services, tax rate, and amount. 

They must file periodic tax returns — typically monthly — reporting taxable supplies, input tax (on purchases/imports), output tax (on sales), and remit any net tax due. 

Input tax credits are available. Tax paid on purchases or imports may be offset against tax due on sales — provided proper documentation and invoices are maintained.