Federal Board of Revenue (FBR), Revenue Division, issued rules for tax treatment of goods supplied from tax exempt areas into taxable areas. In this regard the FBR issued SRO 96(I)/2021dated 26 January, 2021 to make amendment in Sale Tax Rules, 2006, through an addition of a new chapter “Chapter X-A: SUPPLY FROM TAX EXEMPT AREAS”. And two new forms are also inserted after Form STR-31.

The Sales Tax Act, 1990 defines “tax-exempt areas” as Azad Jammu and Kashmir, Gilgit-Baltistan, Tribal Areas as defined in Article 246 of the Constitution of the Islamic Republic of Pakistan.


Federal Board of Revenue (FBR) notified through this S.R.O. that, the person bringing, or causing to bring, taxable goods from tax exempt area is required to be registered under the Sales Tax Act, 1990 as adopted in Azad Jammu and Kashmir and all the provisions of the Acts ibid shall apply accordingly. The liability of payment of taxes and furnishing the prescribed documents on the person bringing or causing to bring taxable goods from exempt area. Subject to the applicable provision a registered person shall be entitled of any input tax.

Every registered person bringing, or causing to bring, taxable goods from tax exempt area into taxable area is required to generate serially number e-transport advice with a unique ID number, through FBR computerized system, in specified form i.e. STR-32. This advice issued prior to enter in to the taxable area. A blacklisted or suspended person and the person who has not filed return last two immediately preceding tax periods are not allowed to generate e-transport advice.

After generation, e-transport advice may be canceled if goods are not transported or not transported as per the details furnished within twelve hours of its issuance. However it can’t be cancelled after it has been examined by authorized officer or any of the check posts.

E-transport advice is valid for a one day for a distance of up to 100 km and one additional day for every 100 km or part thereafter.

Where the taxable goods cannot be transferred due to any unavoidable circumstances, the concerned commissioner IR may extend the period upon receiving the application from registered person.

The details of e-transport advice shall be made available to the recipient of the supply who shall convey his acceptance or rejection of the supply of goods through the FBR computerized system:

Provided that where no acceptance or rejection has been communicated by the recipient within forty-eight hours of such intimation or before the delivery of the goods, whichever is earlier, it shall be deemed that he has accepted the supply of the goods:

Provided further that the above provisions shall not apply where the taxable goods are brought in to the taxable area by manufacturer or importer to be sold at self-own, self-managed, self-administrated or self-operated distribution, wholesale or retail outlet.

The registered person may update the particulars of vehicle while goods are in-transit after intimating to the concerned commissioner IR with reasons for the updating.

Only one e-transport advice may be generated against a single invoice or a stock advice as the case may be. However one conveyance may carry multiple advices in case it is transporting taxable goods relating to multiple invoices or stock advices.

Provided where e-transport advice has been canceled under sub-rule (2), fresh e-transport advice may be generated against the same invoice or, as the case may be, stock advice.

Every conveyance carrying taxable goods originating from tax-exempt areas and entering taxable area shall carry the following documents at the time of entering into taxable areas namely:

  1. Original sales tax invoice prescribed under section 23 of the act as adopted in AJK. However for exempt goods a serially number invoice containing all particulars excluding the amount of sales tax and mentioning the legal provision of exemption.

Providing further that where the taxable goods brought into the taxable area by a manufacturer/importer to be sold at his self-owned, self-operated/self-adopted distributor, wholesaler/outlets, such goods shall be accompanied by a serially numbered stock advice in the form STR-33 along with a copy of STR-1 Form.

  1. Goods declaration in case of imported goods; and
  2. E-transport advices as specified under rule 69D.

The prescribed documents shall accompany the conveyance up to the destination mentioned in the relevant e-transport advice.

The Board may specify the location and other particulars of check-posts and mobile teams, through a notification in the Official Gazette.

The chief commissioner IR of any RTO having jurisdiction over areas adjoining tax exempt areas, shall establish a check posts, as notified by the board.

At the check-posts every conveyance shall be subjected to scrutiny by the authorized officer.

On the basis of credible information, mobile teams may proceed to intercept, examine and search any conveyance on the routes.

A summary report of examination of taxable goods under sub-rule (3) or (4), shall be recorded online by authorized officer mentioning the unique ID number of the e-transport advice of the goods examined.

Any taxable goods in respect of which any of the provisions of the Act or rules have been contravened shall be liable to be seized along with the conveyance.

The adjudicating authority, by passing an order in writing, shall have powers and authority to confiscate taxable goods which are brought in to taxable areas in violation of the Act and these rules. However, such goods shall thereupon vest in the Federal Government.

Goods in respect of which order has been passed, and in respect of which the option of paying a fine in lieu of confiscation has not been exercised, shall be disposed of in such manner as the Chief Commissioner IR, having jurisdiction may direct.”; and

  1. After form STR-31 at the end, the new forms are added. namely:

Form STR-32 (E-transport Advice) and Form STR-33 (Stock Advice).





Government of Pakistan, Federal Board of Revenue, (Revenue Division) had issued Sales Tax Notification (S.R.O. 98(I)/2021) dated January 26, 2021, whereby further amendments have been made in its Notification No. S.R.O.1190 (I)/2019 dated October 02, 2019.


In accordance with sub-section (1) of section 8B of the Sales Tax Act, 1990, a registered person shall not be allowed to adjust input tax in excess of ninety per cent of the output tax for that tax period. However, Federal Board of Revenue (FBR) excluded certain class of persons from the purview of aforesaid sub-section (1) of section 8B of the Sales Tax Act, 1990, vide notification No. S.R.O 1190/ (I)/2019.

Through this current notification, Federal Board of Revenue had further amended its previous notification whereby excluding “Sales tax registered manufacturing companies of cold rolled, GI or coated coils / sheets which are listed on Pakistan Stock Exchange.” from the purview of sub-section (1) of section 8B of the Sales Tax Act, 1990.

Moreover, Automobile manufacturing companies which are listed on Pakistan Stock Exchange till December, 2020 were allowed to adjust input tax to the extent of ninety-five percent of the output tax.

Through this notification, condition of December, 2020 has been further extended to June, 2021.

These changes are effective from 1st day of January, 2021.