You must register for sales tax with FBR when your taxable supplies in any twelve-month period exceed Rs 10 million, or if you are a manufacturer regardless of turnover. Registration gives you an STRN and requires you to file a monthly return by the 18th of the following month. Done on IRIS at iris.fbr.gov.pk.
What Is Sales Tax (GST) in Pakistan?
Sales Tax in Pakistan — commonly called GST (General Sales Tax) — is a consumption tax levied on the supply of goods and certain services governed by the Sales Tax Act 1990 and administered by FBR. Businesses collect it from customers, deduct the tax they paid on inputs, and remit the difference to FBR via the input-output mechanism.
Services sales tax in the four provinces is administered by their provincial revenue authorities — PRA (Punjab), SRB (Sindh), KPRA (KPK), and BRA (Balochistan) — not FBR directly.
Who Must Register for Sales Tax?
The following are required to register under the Sales Tax Act 1990:
- Any person whose taxable supplies in any consecutive twelve-month period exceed Rs 10 million
- All manufacturers — regardless of turnover
- Importers who import taxable goods into Pakistan
- Exporters seeking zero-rating on their supplies
- Tier-1 retailers operating in commercial plazas or national chains
Voluntary registration is allowed. Even below the Rs 10M threshold, registering lets you claim input tax credits on your business purchases — significant savings if your suppliers are already registered.
GST Rates in Pakistan 2025-26
Zero-rated vs Exempt — a critical difference: Zero-rated suppliers can claim input tax refunds. Exempt suppliers cannot claim input tax credits on their purchases. If your supplies are exempt, you cannot register and lose input tax recovery.
STRN vs NTN — Key Differences
| Feature | NTN | STRN |
|---|---|---|
| Stands for | National Tax Number | Sales Tax Registration Number |
| Purpose | Income Tax identification | Sales Tax identification |
| Governing Law | Income Tax Ordinance 2001 | Sales Tax Act 1990 |
| Who needs it | All taxpayers/filers | Manufacturers, importers, Rs 10M+ suppliers |
| Return frequency | Annual (by Sep 30) | Monthly (by 18th of next month) |
| Same as CNIC? | Yes, for sole proprietors | No — separate 13-digit number |
How to Get Your STRN — Step-by-Step on IRIS
You must already have an NTN before you can apply for STRN. See: FBR Registration Guide →
Log In to IRIS
Go to iris.fbr.gov.pk and log in using your existing NTN credentials.
Open Form 14(1) — Sales Tax Registration
In IRIS, navigate to Registration → Sales Tax and open Form 14(1).
Fill in Business Details
Enter your business name, nature of supply, category (manufacturer/importer/distributor/retailer), and all business addresses where taxable activities occur.
Upload Supporting Documents
Required: CNIC, NTN, business address proof (utility bill or lease), bank account certificate, and photos of business premises.
Submit and Receive STRN
After FBR verification (1–5 working days), your STRN is issued. You'll be notified on your IRIS dashboard and registered mobile number.
Issue FBR-Compliant Sales Tax Invoices
Once registered, every taxable supply must be accompanied by a compliant invoice including your STRN, the buyer's STRN, invoice date, and HSN code for goods.
Filing Your Monthly Sales Tax Return
Every registered person must file a monthly Sales Tax Return by the 18th of the following month — even months with no sales require a nil return. The return covers:
- Output tax: Sales tax collected from customers during the month
- Input tax: Sales tax paid on purchases and imports (claimable as a credit)
- Net payable: Output tax minus admissible input tax
Input Tax Credit Rule: You can only claim input tax on purchases from other registered persons who issued valid FBR sales tax invoices. Purchases from unregistered suppliers give you zero input tax credit.
Penalties for Non-Registration and Late Filing
| Offence | Penalty |
|---|---|
| Failure to register when required | Rs 10,000 per month or 5% of tax involved (whichever higher) |
| Failure to file monthly return on time | Rs 10,000 per return + default surcharge |
| Issuing invoices without STRN | Up to Rs 50,000 per invoice |
| Under-reporting output tax | 100% of unpaid tax + prosecution |
| Claiming inadmissible input tax | Amount involved + 100% penalty |
Non-filer consequences: Per the KPMG Tax Year 2026 Rate Card, persons not on the Active Taxpayers List face 100% increased WHT rates across all prescribed transactions. Filing monthly sales tax returns is essential to maintain filer status.