Sales Tax in Pakistan: GST, Registration & Input/Output Tax
26 August 2025By Abdullah Safeer (LLB, DTL)
Sales tax is a tax on consumption, ultimately paid by the end customer. Your job as a business is simply to collect and deposit it. You're a collection agent, not the taxpayer.
If you sell goods, FBR is your authority, sales tax on goods is governed federally under the Sales Tax Act 1990.
If you provide services, sales tax falls under your provincial authority, Punjab (PRA), Sindh (SRB), KPK (KPRA) and Balochistan (BRA) each have their own separate rules.
Output tax is the sales tax you charge customers on your sales, what you owe the government. Input tax is the sales tax you paid on purchases, your credit.
The adjustment is simple: subtract input from output and deposit only the difference, so you never pay twice.
To legally collect sales tax, issue tax invoices and claim input adjustment, you must complete sales tax registration with FBR or the relevant provincial authority and file a monthly return, failure attracts heavy penalties.
Keywords
Sales tax registration Pakistan, FBR GST, input output tax adjustment, monthly STR
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