Pakistan — Federal Sales Tax Return (STR) on Goods

Confirm the taxpayer's NTN and Sales Tax Registration Number (STRN) are active on the FBR IRIS portal and determine the correct registration category — manufacturer, importer, wholesaler, distributor, or Tier-1 retailer. Identify whether any supplies fall under provincial sales tax (services via SRB/PRA/KPRA/BRA/ICT) which requires a separate filing and is out of scope for this workflow. Confirm the applicable Schedules: Fifth (zero-rated), Sixth (exempt), Eighth (reduced rate), or Ninth (fixed tax on mobile phones).

Compile all outward supplies for the tax period (calendar month), classify each supply by applicable rate — standard 18%, reduced Eighth Schedule rate, zero-rated Fifth Schedule, exempt Sixth Schedule, or fixed Ninth Schedule — and compute output tax. Identify any supplies to unregistered persons requiring the additional 4% further tax. For Tier-1 retailers, confirm POS integration is live and QR-coded invoices have been transmitted in real time to FBR.

Review all inward purchases for the period and verify eligibility for input tax credit against the Section 7 criteria: supplier must be STRN-registered, invoice must appear in IRIS Annex-A (auto-populated from the supplier's filed Annex-C), claim must be within six tax periods of the invoice date, and input must not be blocked under Section 8 (passenger vehicles, building materials, entertainment, goods from suspended or blacklisted suppliers). Apply the Section 8B cap: adjustable input tax may not exceed 90% of output tax in the same period.

Identify any withholding sales tax certificates received from designated withholding agents (government departments, public-sector companies, listed companies) under the Sales Tax Special Procedure (Withholding) Rules 2007. Record the CPR references and amounts withheld, which offset the net payable in the STR main return. Also handle any stock statement requirements (Annex-F for manufacturers), export refund claims (Annex-H via FASTER or ERS for exporters), and debit/credit note adjustments (Annex-I).

Aggregate output tax, further tax, and extra tax (if applicable); deduct eligible input tax (post Section 8B cap) and withholding ST credits to arrive at the net sales tax payable or carry-forward balance. If tax is payable, generate the Computerised Payment Receipt (CPR) via IRIS and make payment through a designated bank branch or internet banking by the 15th of the following month. If a refund position exists, confirm the carry-forward treatment or initiate a formal refund claim.

Submit the completed Sales Tax Return on IRIS by the 18th of the month following the tax period. Confirm all annexures (A, B, C, and any of D, F, H, I, J as applicable) are included. Download and retain the filed return acknowledgement and payment CPR for six years. Flag any red-flag thresholds — single transactions above PKR 5,000,000, input/output ratio exceeding 90% for three or more consecutive months, or counterparty concentration above 40% — for proactive review before the next FBR audit cycle.