Federal Board of Revenue has issued Notification ref: 825/(I)/2018 dated June 29, 2018.
The SRO seeks to delete the clause (ba) from SRO 488(1)/2004 as if it never existed subject to condition that no refund or adjustment of sales tax under this omitted clause shall be admissible. The said SRO (488) mentions goods or class of goods that are not to be supplied to un-registered person under the Act (Sales Tax Act, 1990) and if the supplies are made then the registered person shall not be entitled to reclaim or deduct input tax in respect of these supplies. Effectively the goods or class of goods mentioned at clause (ba) of the said SRO have been excluded from the ambit of restriction on supply to un-registered person (and if supplied, no benefit on reclaim or deduction shall be available to the supplier) however, refund or adjustment of sales tax have not been allowed (assumingly, relating to these periods).
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