What is GST (General Sales Tax)?
GST, or General Sales Tax, is the common name in Pakistan for sales tax charged on the supply of goods and charged by registered businesses on their sales.
Updated
Meaning
English
GST, or General Sales Tax, is the common name in Pakistan for sales tax charged on the supply of goods and charged by registered businesses on their sales.
Roman Urdu
GST ka matlab General Sales Tax hai, jo registered karobar apni Sale par bill me lagate hain aur FBR ya sooba ko jama karwate hain.
Also called General Sales Tax, sales tax Pakistan.
Example
A registered shop sells an item and adds sales tax on the invoice. At month end it files a return, subtracting the tax it paid on its own purchases.
How it works
Federal sales tax on goods comes from the Sales Tax Act, 1990, which FBR administers. Provincial revenue authorities (PRA, SRB, KPRA) collect tax on many services. A registered business charges tax on its sales, can claim the tax it paid on business purchases (input tax), and pays the difference. Rates and exemptions change with each Finance Act, so this page quotes none; check FBR or a tax adviser. See sales tax and GST calculator.
In Nafaa
Nafaa can set tax on products and bills and offers optional FBR and provincial integration from its Tax page. See FBR integration.
Official source
FBR: Sales Tax Basics. Rates and rules change with Finance Acts; confirm the current position with FBR or a tax adviser.
Related terms
- Sales Tax (GST)
Sales tax, often called GST in Pakistan, is a tax on the supply of goods charged under the federal Sales Tax Act, 1990, with services taxed separately by the provinces.
- Input Tax and Output Tax
Input tax is the sales tax a registered business pays on its purchases; output tax is the sales tax it charges on its sales. The business pays the difference.