Federal Board of Revenue (FBR) made compulsory for the retailers to pay General Sales Tax (GST) of 17%. This policy is applicable to all the retailers operating outlets or shops having 1000 Sq. Ft. area.
As per news report, FBR Spkoes Person, Dr. Hamid Ateeq Sarwar, this order is part of “Tier-1 GST Policy. He claimed that the federal institution has aimed to collect RS.2,600 Billion from GST. This GST tax is imposed on domestic & import fronts. Moreover, overall target is to collect Rs. 5,550 Billion as revenue, for FY 2019-20.
On the other hand, Section 2(43 A) of the Sales Tax Act 1990 has now updates the category of ‘Tier-1”. As per new definition, all shop having area of 1000 Sq. Ft. area will be categorize in Tier-1. In other words. They are bound to pay all liabilities announced by FBR.