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.
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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.
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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.