Pakistani GST returns

Once registered for sales tax (GST) in Pakistan, businesses are required to regularly report their taxable activities, submit returns, and pay any tax due to the Federal Board of Revenue (FBR) or relevant provincial authority. Returns must accurately reflect sales, purchases, input tax, and output tax, and must be filed even if no transactions occurred during the period.

Most registered taxpayers in Pakistan must file sales tax (GST) returns monthly.

In certain special cases (e.g. some categories of importers or CNG dealers), returns may be filed quarterly.

For manufacturers and others, there may also be an annual return requirement.

The standard monthly return (Annex-C) must be submitted by the 18th day of the month following the reporting period. If there is sales tax payable, payment is typically due by the 15th of that month.

Registered businesses must keep comprehensive records of purchases, sales, and all taxable supplies. Records should match the details provided in the returns:

• Invoices
• Input tax
• Output tax
• Import/export documentation

Typically, records must be retained for a number of years (for audit/compliance purposes) though exact record retention requirements may vary.

Where output tax exceeds input tax, payment must be made by the 15th of the month following the tax period. Late payment or filing may result in additional tax, penalties, or interest under the law.

Registered taxable persons can offset input tax (tax paid on purchases/imports) against output tax (tax collected on sales), reducing net tax liability.

• Input tax recovery is generally allowed when the inputs are used for taxable sales (not exempt supplies).
• Where input tax exceeds output tax (e.g. zero-rated or export supplies), the business may — subject to rules — claim a refund or carry forward the input tax credit.

Returns are submitted electronically via the FBR’s e-portal (e.g. IRIS portal) for registered persons. Payment of tax (if due) must be made through approved banks or payment channels as per FBR instructions.

If input tax exceeds output tax in a given period, businesses may:

• Carry forward the excess input tax to offset future output tax liabilities (the most common treatment).
• Apply for a refund, particularly in cases involving:
  • Zero-rated supplies (e.g., exporters) 
  • Excess input tax caused by rate differences or exemptions
  • Specific sectors eligible under refund rules issued by the FBR

Refund claims must be filed electronically through the FBR IRIS system and supported by documentation such as import declarations, invoices, purchase records, and proof of zero-rated supplies. Refunds are subject to audit or verification before approval.