The FBR issued Sales Tax General Order (STGO) No. 106/2019 dated October 04, 2019 in the matter of “Good Faith” with respect to CNIC requirement for sale to unregistered persons to end misconceptions and misapprehensions on the issue.




Through this circular, the Federal Board of Revenue (FBR) has clarified issues relating to the problems reported by registered persons in ensuring proper identity of the buyers to fulfill the requirement of submission of NTN/CNICs of the buyers in terms of section 23 of the Sales Tax Act 1990.


The CNIC/NTN reporting by the supplier would be deemed to be made in “Good Faith” if:


  1. The Tax invoice complies with the requirements of section 23(b) of Sales Tax Act, 1990.
  2. Payment made by or on behalf of unregistered purchaser of invoice amount (including sales tax and applicable further tax) is deposited in supplier’s declared business bank account.
  3. The CNIC provided by the purchaser is found authenticated by NADRA.
  4. The CNIC/NTN provided is not of employee of the seller or of his associates as defined in Income tax Ordinance, 2001.


The circular further states that, any show cause notice to registered person being seller on account of any matter arising out of CNIC/NTN provided by purchaser shall not be issued without the prior approval of Member (IR-Operation), FBR after providing an opportunity of being heard.




STGO NO. 106 OF 2019 DATED 04.10.2019 — CNIC