The Federal Board of Revenue (FBR) has introduced a risk-based, time-bound mechanism for sales tax registration through Sales Tax General Order (STGO) No. 20 of 2026 (IR Operations), dated August 24, 2026. The order directs field formations to prioritise low-risk applications and sets a three-working-day processing target for applicants whose submissions are complete and meet all prescribed requirements.
Applications submitted through the IRIS computerised system will be classified using prescribed risk parameters. Those rated low risk will receive priority treatment. Where such an application is complete in all respects, the concerned Local Registration Office (LRO) must process and grant registration without unnecessary delay and, as far as practicable, within three working days.
Bar on additional document demands without cause
Officers may not seek additional information or documents from low-risk applicants unless the request is specifically required under the Sales Tax Act, 1990; prescribed under the Sales Tax Rules, 2006; needed to verify information already furnished by the applicant; or prompted by a specific risk indicator generated through FBR’s computerised risk-management system.
If an application requires further scrutiny, the officer must refer it with specific, electronically recorded reasons. Where an application is incomplete, the LRO must notify the applicant through the computerised system within seven days, clearly identifying the missing document or information, the nature of the deficiency, how to rectify it, and the time allowed for compliance. General or vague objections are barred; every objection must be specific and tied to a statutory or regulatory requirement. Once the applicant rectifies the deficiency, the application must be processed without requiring the applicant to restart the registration process.
Pre-registration certification for manufacturers
For manufacturing applicants, sectoral trade associations operating under the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) are to provide pre-registration certification verifying the applicant’s manufacturing activity, business premises, and membership records. The certificate must be transmitted electronically to the relevant LRO along with other required documents.
The FBR clarified that this certification is facilitative only and does not replace any statutory requirement under the Sales Tax Act or the Sales Tax Rules. It also does not grant any exemption, concession, or immunity. The certifying association will be held responsible if incorrect information later emerges during physical verification.
Mandatory pre-physical verification for manufacturers
LROs must conduct pre-physical verification of manufacturing applicants under Rule 5(5) of the Sales Tax Rules, 2006 within three working days. The outcome must be recorded electronically before the application proceeds further.
Enhanced scrutiny for high-risk cases
The new mechanism does not guarantee automatic approval within three days for every applicant. High-risk or suspicious applications remain subject to enhanced scrutiny, including pre-verification, post-verification, or other measures permissible under law. A low-risk classification also does not prevent the FBR from undertaking subsequent verification if information later becomes available indicating fraud, misrepresentation, non-existence of the business, fake documentation, or any other irregularity. Any subsequent verification will be conducted under the Sales Tax Act, 1990 and the Sales Tax Rules, 2006.
The Board has directed all Chief Commissioners Inland Revenue and Commissioners Inland Revenue to ensure compliance. Copies of the order have been circulated to Inland Revenue field formations, the Directorate General of IT and Digital Transformation, and PRAL for implementation and placement on the FBR web portal.
What to do next
Applicants should continue to submit sales tax registration applications through the IRIS system with all prescribed documents. Manufacturing applicants should coordinate with their respective sectoral trade associations under FPCCI for pre-registration certification, which must be transmitted electronically to the LRO. Incomplete applicants will receive a specific deficiency notice within seven days and may rectify it without restarting the process.
The FBR has not yet published the full text of STGO No. 20 of 2026 on its general orders portal, and the precise computerised risk parameters that determine low-risk classification have not been specified in the reports reviewed.