The FBR has given deadline of next 13 days for tier-1 retailers to connect with Point of Sale (POS) software till August 31, 2020 and warned that if they failed to comply then the penalty up to Rs1 million could be imposed.
The FBR further argues that if the offense continued the FBR possessed powers to seal premises of such retailers. According to the FBR’s announcement made here on Tuesday stating that the tax machinery reminded all the Tier-I retailers to integrate with Point of Sale (Linked Invoicing System) till the last date i.e. 31st August, 2020.
It is relevant to mention here that the FBR launched campaign to connect tier-1 retailers with POS but then it lost momentum especially in the aftermath of COVID-19 pandemic. The chain store Association of Pakistan had assured the government on eve of budget for 2020-21 that their 20,000 outlets could be connected with POS software if the government fulfilled their demands.
The rate of GST for tier-1 was reduced so it is hoped that the tier-1 retailers will prefer to come into tax net. However, the FBR has explained that all retailers who have the network of chain stores throughout Pakistan, located in air-conditioned big shopping malls or plazas and their cumulative electricity bill during the immediately preceding twelve consecutive months exceeds twelve hundred thousand rupees and they are engaged in bulk import and supply of consumer good on wholesale basis to the retailers as well as on retail basis in to the consumer and their shop’s size measures one thousand square feet in area or more must integrate their retail outlets with the bureau’s computerised system for real time reporting of their sales.
FBR has warned that the last date for such integration is 31st August, 2020 and afterwards those who failed to integrate would be imposed a penalty up to rupees one million and if the offence continued, the business premises of such retailer shall be sealed.