The Federal Board of Revenue (FBR) has given a new facility to the refundclaimants to file their non-export related sales tax refund claims underthe Expeditious Refund System (ERS) or can go to the regional tax officesfor filing claims through the old ‘STARR’ system.
The FBR has conveyed the decision to the Regional Tax Offices due tolimited capacity and technical issues with the Fully Automated Sales Taxe-Refund (Faster) system while dealing with the sales tax refund claimswhere there is no export.
The taxpayers have been permitted to use other old systems of the FBR likeSTARR or ERS for filing non-export related sales tax refund claims tillJune 30, 2021. Thus, the refund claimants who are unable to process theirclaims through the FASTER can now go to the regional tax offices forprocessing of their refund claims, FBR officials explained.——————————
The FBR’s instructions issued to the field formations here on Mondayrevealed that the registered persons claiming non-export and/or input taxcarryforward based sales tax refund in terms of rule 34 of the Sales TaxRules, 2006, are required to file the claim through submission of Form-7Awith the Sales Tax Return.
And whereas, the said Form is still not enabled and registered personsclaiming refund under the aforesaid rule are facing difficulties in thefiling of refund claim through Form STR-7A.——————————
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The Fully Automated Sales Tax e-Refund (Faster) system lacks the capacityto replicate data of more than one tax period or process claims where thereis no export.
Now, therefore, in order to remove the difficulty in implementing theprovisions of rules and to address refund issues faced by the registeredpersons, in the exercise of the power conferred under section 55 of theSales Tax Act, 1990, the Board is pleased to allow the filing ofcarry-forward based or non-export related refunds through RCPS (refundsoftware used for uploading data) at tax offices in STARR or throughExpeditious Refund System (ERS) up to June 30, 2021.
The field formations are accordingly advised to receive, process anddispose of such refund claims as per law expeditiously, FBR directive tothe field offices added.
